Israeli Together Cannabis Enters The German Market
September 13th, 2018
Together (TASE:TGDR), one of two cannabis companies on the Israeli stock exchange, has just made an aggressive move into the German medical cannabis market. According to available information, Together has signed a deal to deliver up to €50 million (approximately 12.5 tons of produce)to a so far unnamed German medical cannabis distribution company. The German company has a distribution network of 100 pharmacies.
Together has also signed a Memorandum of Understanding to acquire 50.1% of the same with a target of closing the deal by October.
The other details on the German company remain sparse. It is an entity that is in the final stages of receiving an import license and already holds an R&D license.
Who Is Together?
Together Cannabis is not a well-known company outside of Israel, but if they keep up their current pace, that appears to be about to change. Earlier in the year, the company announced plans to create a grow area of 10 hectares(25 acres) in an unnamed country outside of Israel earlier this year. This year, Together also sold five tons of cannabisoil to a Canadian company in a deal worth at least $300 million.
The All Important Price Per Gram
The company is coming into a highly price sensitive market in Europe. According to statements, the Canadian deal will see wholesale prices of about $3 per gram. In Europe, they intend to sell product for about 10-12 euros a gram, to pharmacies direct.
This places them in an interesting position with regards to the new unofficial “reference price” to beat in the German tender bid. That price, according to bid documents has to be (well) under 7 euros a gram (wholesale) and to the government.
A Contender For The German Bid?
The last time around, the news about the German bid hopefuls centered on the Canadians. This time that already is not the case. It is also clear that Together would be well-placed to apply, with a footprint and profile that puts it well within the parameters of the German bid.
With money, deals and international distribution lining up, Together has indeed announced it’s global if not European presence and intentions with authority.
Will Jews Repatriate Germany Via The Cannabis Industry?
There are certainly more Jews in Germany these days, coming here for business reasons, than at any other time since WWII. Mainstream German supermarkets are even starting to stock whole specialty sections with kosher food.
Israeli interest in particular in the German cannabis market has been high for at least several years, although international complications (see the continued ban worked out between Donald Trump and Benjamin Netanyahu) and local goofs (see the issuance of the second tender) have slowed this down on a number of occasions.
It appears, however, that this interest is now ramping up to the next level.
It is widely rumoured at this point that the export ban in Israel is going to be lifted within the next year. Some have even suggested that the export ban could be abolished by the time the German government bid deadline is due in October, although that is very unlikely.
And in the meantime, firms like Together are establishing both cultivation and distribution networks on their own, outside of Israel.
This is not the first of its kind deal (or series of them) but it certainly is the largest of its kind.
What Is The Biggest Impact In The Short Term?
Israeli firms like Together are likely to impact the European, if not Canadian market in several ways.
The first is that they are absolutely driven by mind-set, beyond the market, to provide cheap, high-grade cannabis globally. This is in direct contrast with trends coming out of the Canadian market, where producers are starting to make noises about actually raising prices (presumably to meet unstoppable demand).
The second is that the pace of European cannabis cultivation is likely to increase dramatically. Israeli firms have been establishing cultivation sites in places like Eastern Europe and Greece for the better part of the last 18 months.
Several years from now, in other words, firms like Together could well shift the balance if not the bulk of where medical cannabis comes from – even in Europe – and certainly beyond it.
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: http://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.