Organigram Holdings, Inc., the parent company of leading licensed producer of cannabis Organigram Inc., has announced that it has entered into a multi-year agreement for supply of dried flower to one of Israel’s largest and most established medical cannabis producers, Canndoc Ltd.
Canndoc is a subsidiary of InterCure Ltd. As part of the agreement, Organigram will supply Israeli leader Canndoc with up to 6,000kg of dried flower in a multi-year strategic agreement.
This is Organigram’s largest international deal to date.
Organigram will provide a guaranteed 3,000 kg of high quality, indoor-grown dried flower product to Canndoc by December 31, 2021 for processing and distribution into the Israeli medical market, and may provide an additional 3,000 kg during the same time period at Canndoc’s option, subject to certain conditions. The agreement provides for a tiered pricing scheme and the exact value will vary depending on factors such as potency and product mix.
According to a press release from the comapny, the agreement also contemplates, among other things, an opportunity for Organigram to launch branded medical products with Canndoc in the Israeli and EU markets, and grants exclusivity and related rights to Canndoc within the Israel market for a period of approximately 7.5 years.
Activities under the Agreement are subject to compliance with all applicable laws, including receipt of all requisite approvals from Health Canada, the Israeli Ministry of Health, and any other applicable regulatory authorities.
Greg Engel, CEO, Organigram has said, “Success in international cannabis markets requires a disciplined assessment of opportunities and the identification of strong, world-class partners. For this reason, we are proud to work with Canndoc, a company who we believe shares both our focus on the production of high-quality products and deep commitment to helping patients around the world.”
“While we have been one of the suppliers for the Australian medical cannabis market for more than two years, the agreement with Canndoc represents an important, significant leap into the global cannabis marketplace for Organigram, allowing us to support not only medical cannabis patients in Israel but also potentially in the other major international markets that Canndoc serves,” added Engel.
“Driven by the mission of meeting patients’ needs and improving their quality of life, we are pleased and proud to work with Organigram to help achieve better patient health and treatment outcomes in Israel, as well as other countries that recognize the value of these medicines for people in need,” commented Ehud Barak, Chairman, former Israeli Prime Minister and Chairman of the Canndoc Board of Directors.