Record-breaking Medical Cannabis Deal Signed in Israel

[dropcap class=”kp-dropcap”]I[/dropcap]srael is currently faced with a lucrative opportunity, but the proposed deal hinges upon the nation’s stance on medical cannabis exports. Announced on March 4, an Israeli company has signed a record-breaking $110 million deal to cultivate and produce medical cannabis for a European-based company.

Medivie Therapeutic and its subsidiary High Pharma have earmarked around 100 dunams (24.71 acres) of land to grow, produce and export up to 50 tons of medical cannabis each year. Medivie owns the rights to 200 dunams of land for the next 24 years.

The future of the deal depends on if the Israeli government chooses to allow for the export of medical cannabis, as it contains a clause that would nullify it. Fear of displeasing U.S. President Donald Trump prompted Israel to halt its plans to export medical cannabis, according to the Israeli press. Israeli Prime Minister Benjamin Netanyahu then blocked the export of medical cannabis until further studies have been released.

The company would “not hesitate to transfer its activity and knowledge to other countries if export from the State of Israel is prevented,” Medivie CEO Menachem Cohen told the Times of Israel.

All of this goes against what several of Israel’s leaders have been saying, who approve of medical cannabis. Justice Minister Ayelet Shaked accompanied Agriculture Minister Uri Ariel to a medical cannabis facility and was pleased with what they saw. “I was impressed by how important medical cannabis is to so many patients,” the minister tweeted, translated from Hebrew. “Israel can become an exporter of medical cannabis with an income worth NIS 4 billion a year ($1.14 billion). We must not miss the train. Today we are the locomotive; if we hesitate, we will become the trailers.”

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Despite the political setbacks, this deal has the potential to change minds in Israel’s leadership. Currently Canada is the only country that allows for the export of medical cannabis.