For the first time ever, legal cannabis use is sweeping the world. It is sweeping the world, because let’s be honest: we live in a country that is notorious for its denial of the benefits of cannabis use.
The cannabis industry is in a unique position. Until a few years ago, there was not a lot of funding available for cannabis startups. However, thanks to recent changes in the law, more investors are starting to get involved, and there are more cannabis-related startups than ever before. Of course, there are still a lot of questions that need to be answered before the cannabis market will reach its potential.
In the past month, the U.S. cannabis industry has seen a number of exciting developments, and 2015 is shaping up to be an even better year! The headlines include:. Read more about what investors look for and let us know what you think.
Israel is a pioneer in cannabis research and development, as well as in the developing industry.
In Israel, many scientific discoveries have happened. Dr. Rafael Mechoulam is one of the most well-known cannabis experts, having discovered THC and other active chemicals in cannabis decades ago with his colleagues.
Today, Israel is expanding its legal market while maintaining its scientific heritage.
Medical and research reasons are presently permitted in the nation. This year, those restrictions should be expanded to enable adult usage. That is, assuming the country follows through on its November 2020 pledge to legalize marijuana within nine months. If the nation sticks to its objective, legalization will take place this month.
As the possibility of adult-use looms, the industry continues to expand. According to the Israeli Medical Cannabis Agency, the country’s patient count will have doubled to over 70,000 by September 2020. (IMCA).
Major companies have been in the market for a while and, in certain instances, are asserting their claim even farther. In late July, international cannabis company IM Cannabis (CSE: IMCC) (NASDAQ: IMCC) announced a series of Israeli market acquisitions totalling $.7 million in new investments in the country.
Curaleaf Holdings Inc (OTC: CURLF) sent over a ton of cannabis to Israel as part of a contract with BOL Pharma in early July. Cookies, a major American cannabis brand, is also participating, thanks to an April 2021 manufacturing agreement with Israeli company InterCure.
Although there are certain market worries, Israeli operators seem to be enthusiastic about the industry and its prospects in the future.
Israel is a global cannabis hub with plenty of room to expand.
Operators cited a number of advantages in the industry, ranging from the country’s research background to its burgeoning potential as adult-use opportunities increase.
Craig Frank, CEO of worldwide brand Kaya Holdings, Inc., said that the country is a pioneer in research and development and that cannabis is used by a significant percentage of the population. According to a widely quoted statistic from 2017, Israel has the world’s highest proportion of cannabis users, with 27 percent of the country’s 18 to 65-year-olds using the drug.
“We chose Israel as a location to invest because it is a technological hub for the sector, and we wanted to be near to the activity,” Frank said. He thinks that when Israeli companies enter the global cannabis market, the next opportunity will present itself.
Oren Shuster, CEO of IM Cannabis, stated, “Israel is known as a global hub for cannabinoid R&D and is punching above its weight.” He feels that local players benefit from their proximity and potential to collaborate with leading research teams and facilities.
Additional market advantages, according to Shuster, include excellent growing conditions, compact geography that favors large-scale supply chains, a strong healthcare system, and effective laws.
“Israel is one of, if not the world’s, biggest importers of medicinal cannabis, and the recreational market’s potential is enormous,” Shuster said.
Regulations, according to Nadav Eyal, CEO and co-founder of Eybna, a U.S. and Israeli tech company, “have helped turn Israel into a sanctuary for the field’s innovation and development.”
“As more nations move toward complete legalization, Israel’s scientific approach, coupled with a favorable legal framework and continuing research initiatives, has helped position the local sector to flourish,” Eyal said. Israel’s cannabis market may be hampered by its small size and stringent regulations. Despite many possibilities, the maturing market has flaws.
According to Jacob Adib, a research analyst for Euromonitor International, the industry remains mainly unexplored, with just around 13 businesses listed on the Israeli stock exchange and 43 brand variants.
Many businesses are struggling to remain afloat, according to Adib, because to a lack of exports and little interaction between merchants and customers during the epidemic.
“Overall, this has attracted external investors and businesses,” Adib said. Non-Israeli investors, on the other hand, are restricted to a 5% stake in any cannabis business.
IM Marijuana’s Shuster pointed out that Israel’s population of 9 million people, as well as political fragmentation that may impede legislation, could limit market development. Legislators, according to other operators, may be sluggish to act on cannabis legislation.
According to Adib, market potential is hampered by tight restrictions and goods restricted to cannabis flower and oil. Buyers would instead go to neighboring Iraq or Jordan’s illegal market for a wider range of products, he added.
Andrew Ward or Benzinga (https://www.benzinga.com/) wrote this article.
A lot of people ask me what they should focus on in order to build a successful marijuana business. The answer is simple: start early, learn from the best, and run a profitable business with a great work atmosphere.. Read more about what investors look for in startups and let us know what you think.
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