Isracann Biosciences (IPOT.C) received a foreign owner cannabis license from the Israeli Minister of Health today, according to a press release.
Getting this license concludes Isracann’s regulatory compliance requirements and opens the company to prepare for commercial operations.
“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,” said Darryl Jones, CEO of Isracann.
IPOT is an Israeli pure pot play, working to become a producer and distributor of premier, low-cost cannabis in major undersupplied European marketplaces. IPOT also engages in cannabis research, and has secured agreements with the Israel government for medicinal cannabis cultivation.
The arrangement calls back to an announcement from last year when IPOT entered into a joint venture for near-term farm operations in Ein Hahoresh, Israel. The agreement included such perks like an equitable sharing package for both operating costs and revenue through participatory agreements in construction, growing, land lease agreements and other agreements defining the various rights enjoyed by all the parties involved. The foreign owner’s license eliminates regulatory barriers, giving the company the ability to complete execute on its JV plan.
The foreign owners license is the last step towards the company’s total legitimacy in Israel. Ownership licensing opens the door to domestic partnerships, increased options for participation in state-sponsored initiatives, and perhaps most important, enhanced funding options. It also simplifies the domestic acquisition process, including the intended acquisition of a third-party participant in the JV, which would boost IPOT’s ownership to 50%.
The company has also completed all of their construction and infrastructural installations in time to start planting at their Hefer valley-based Ein Hahoresh farm. They’ve had issues due to COVID-19 and have one more regulatory issue to deal with before they can actually begin production. This hurdle involves law enforcement and Ministry of Health inspection and approvals, and the company is sure there won’t be any issues regarding scheduling these inspections.
IPOT’s stock is up half a cent today, and trading at $0.25.