Isracann Receives Foreign Owners License and Updates Israeli Cannabis Operations - 04/21/2021 9:00:00 AM
VANCOUVER, British Columbia, April 21, 2021 (GLOBE NEWSWIRE) -- Isracann Biosciences Inc. (CSE: IPOT) (XFRA: A2PT0E) (OTC: ISCNF) (the “Company” or “Isracann”) an Israel-based company focused on becoming a premier low cost, high quality cannabis producer/distributor is pleased to announce it has been granted a Foreign Owners Cannabis License by the Israeli Minister of Health. This important event paves the way to conclude a number of outstanding key partnership and regulatory considerations in preparation for commercial operations.
In a press release issued on March 24, 2020, Isracann announced its entry into a joint venture (JV) agreement as part of a phased partnership of two near-term farm operations located in Ein Hahoresh, Israel. The agreement included an equitable sharing arrangement of both operating costs and revenue through participatory agreements comprising construction services, growing services, land lease agreements, IMCA licenses, and a number of sub agreements establishing and defining the various rights of all parties. Today’s announcement represents the removal of regulatory ownership barriers in order to fully execute the terms of the JV plan.
The highly sought-after foreign owners license significantly legitimizes the Company’s presence in Israel. There are only a small number of foreign owned sector participants who have obtained similar licencing, and Isracann is now favourably positioned to leverage certain advantages. Ownership licensing allows for greater access to domestic partnerships, increased participation in state-sponsored initiatives, and enhances access to financing. It also simplifies the Company’s ability to undertake domestic acquisitions, including the conclusion of its planned purchase of a third-party participant in the JV which would result in Isracann increasing its ownership position to 50%.
In related news, the Company has concluded all requisite construction and infrastructural installations in preparation for the commencement of planting and subsequent production at its Hefer Valley-based Ein Hahoresh Farm. Largely due to COVID-19 related delays, Isracann has a final regulatory hurdle to conclude which appears to be moving closer to conclusion. Based on discussions with our regional consultants, we are waiting for an inspection by law enforcement officials and concurrent Ministry of Health approvals. It is our understanding that scheduling for the inspection is imminent. Upon receipt, Isracann will have full approval to begin planting.
Regarding the recently announced medical cannabis import partnership LOI, Isracann is working diligently with the Israeli partner to conclude the agreement for the importation of Canadian products on an expedited basis. Additionally, Isracann is finalizing an agreement with its Canadian partners to secure high-grade genetic material for introduction into its Israeli-based genomics program. While regional strains have certain inherently excellent traits, Isracann aims to broaden product diversity, and through expert agronomy to achieve a selection of world-class offerings.
Isracann CEO, Darryl Jones states, “We continue to push ahead on multiple fronts. From product importation to new genetics programs on the one hand, today we also celebrate our official approval as foreign owners in this exciting sector. Now we can truly dig in to finalize matters and accelerate our efforts to fully enter the commercial marketplace. We’ve been in communication with all the relevant parties and now with the licensing in-place, a number of initiatives will be triggered almost immediately and should result in an accelerated pace towards revenue generation. We have to admit that we always thought the pandemic would create a delay, and it could have been worse. In the meantime, we have by no means been standing still and have used the opportunity to invest in added value and develop our relations throughout the region. Once again we thank our Israeli team of consultants and stakeholders who have proven to be invaluable at representing our interests so effectively and who share our vision for success.”
Further to the Company’s news release on January 11, 2021, the Company has issued 6,123,563 warrants pursuant to its incentive program. Each warrant entitles the holder thereof to acquire one additional common share of the Company at $0.50 per share for 24 months from the date of issuance.
ON BEHALF OF THE BOARD OF DIRECTORS
“Darryl Jones”
Darryl Jones
Chief Executive Officer and President
