Ra’anana-based Together Startup Network shares soared on the Tel Aviv Stock Exchange Monday, closing up 17.7% at 12.96 shekels ($3.70) on news that the company has agreed to sell 5 tons of cannabis oil to an unnamed Canadian company, potentially handing it revenues of hundreds of millions of shekels. The Canadian company is to buy 50 tons of dried inflorescences of cannabis each year, equivalent to five tons of medical cannabis oil, from Together subsidiary Globus Pharma.
The parties intend to draw up a detailed agreement that will fix the price of the sale of the various cannabis products according to prices on the Canadian market at the time of signing, the company said in a statement.
Globus plans to provide the Canadian company with medical marijuana from farms in Israel subject to receiving an export permit for medical marijuana, or from its farm in an overseas country, which has an export agreement with Canada. The two companies will also collaborate in the field of research and development and promoting technologies in the medical marijuana industry.
Meanwhile, the IBI investment house is launching a mutual fund that tracks the shares of companies in the marijuana industry, focusing on medical uses. The fund is based on the North American Cannabis Index.
Established a little over a year ago, the index’s value has grown by 47%. The index features publicly traded North American companies with significant business operations in the industry. It includes growers, suppliers and technology firms engaged in research and development as well as manufacturers of equipment designed to enhance the efficacy of treatment with marijuana. The index has minimum capitalization requirements. IBI will charge a management fee of 0.8% to investors in its fund.