Unnamed Chinese company invests in Israeli medical cannabis company
Together Pharma, a Tel Aviv-based medical cannabis company, has signed a memorandum of understanding with an unnamed Chinese-controlled company to establish operations in China. The unidentified company will invest $1 million to establish Together Pharma operations in China, which will be equally owned by the two firms.
While cannabis use has been illegal in China since 1985, the country is the largest producer of industrial hemp worldwide, and Chinese companies own more than half of all cannabis-related patents worldwide.
Together Pharma, through its subsidiary Globus Pharma, already has cannabis marketing and distribution agreements with major companies in Germany and Canada, and produces 80 tons of cannabis annually. The company is also active in Israel, Uganda and Portugal.
“We continue to implement the company’s business strategy of building an international presence in markets with major economic potential for us,” said CEO Nissim Bracha. “Establishing the joint venture in China includes investment from the Chinese partner in Together Pharma totaling $1 million, alongside setting up operations in China and financing by the partner. We are confident about this move into the medical cannabis sector as well as other associated fields in China.”
Through the joint venture, Together Pharma hopes to enter the CBD-based food, beverage, pharmaceutical and cosmetics products market in China. The Israeli company will provide all the know-how and patents for products in the medical cannabis sector.
The Chinese company will work to receive all necessary approvals and licenses to establish the joint venture, and will also finance all the necessary expenses including allocating land for building cultivation facilities, a GMP-standard factory, R&D laboratories for products, and a marketing and distribution network.