Isracann Raises C$10.1 Million in Bid to Supply European Market with Israeli Cannabis -- CFN Media
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Seattle, Washington--(Newsfile Corp. - May 28, 2019) - CFN Media Group ("CFN Media"), the leading agency and financial media network dedicated to the North American cannabis industry announces publication of an article discussing Isracann Biosciences Inc. (CSE: IPOT - pending).
The global cannabis industry is projected to be worth nearly $150 billion by 2025, according to Grand View Research, driven by the liberalization of cannabis laws around the world.
Many investors have been focused on North America given Canada's move to legalize recreational use and the growing number of states doing the same. However, Europe's massive population could make it the most significant growth market over the coming decade as its laws evolve.
Isracann plans to capitalize on these dynamics through its cultivation operations in Israel - a country with an ideal climate, liberal laws, and extensive cannabis research and development experience.
Let's take a look at the company's plans to go public in the near-term and its plans to target Europe's nascent market.
Gearing Up to Go Public
Atlas Blockchain Group Inc. recently raised C$10.1 million in a private placement ahead of its takeover of Isracann Biosciences Inc.. After the reverse merger takes place, the company plans to change its name and trade under the ticker symbol "IPOT" on the CSE.
"Our strong balance sheet will propel our efforts to complete Isracann's proposed Phase I facility of 230,000 square feet of cultivation area and we can look beyond the immediate plans in order to execute additional strategic goals," said Isracann President Darryl Jones. "With the recently announced regulatory changes allowing product export from Israel, we look forward to rapidly building an enterprise aimed at both the domestic and underserved European consumer markets."
The private placement offering consisted of subscription receipts at C$0.17 a piece that entitles the holder to receive one common share and one purchase warrant to acquire one share at C$0.34 per share for two years following the issuance date.
The financing efforts are concurrent to a share exchange agreement to acquire all issued and outstanding common shares of Isracann Biosciences in exchange for common shares of Atlas Blockchain Group Inc. The arm's length transaction is expected to result in a name and ticker symbol change.
Meeting European Demand
Isracann is an Israeli firm with rights to prime agricultural land and preexisting production permits equivalent to the Canadian ACMPR cultivation license. The company plans to build a 230,000 sq. ft. cultivation presence that leverages the country's unique climate and extensive R&D expertise.
Management believes that the country's unique climate and R&D advantages could enable low-cost cannabis production of about C$0.40 per gram, according to its website. The ability to form partnerships with leading research organizations could also lead to unique strains, pharmaceuticals, and devices.
While there is significant domestic demand, the company's long-term ambition is to become a leading supplier to European markets given its proximity. The European Union's population exceeds that of the U.S. and Canada combined, which could make it an attractive market as legalization unfolds.
In January, the Israeli government approved the export of cannabis raw materials, such as oils and tablets. Regulators are drafting specific rules and regulations that will guide the implementation of the new law, and experts believe that these new regulations could be ready by the fourth quarter of 2019.
Looking Ahead
Isracann Bioscience's C$10.1 million private placement and pending reverse merger with Atlas Blockchain Group Inc. could pave the way for a unique pure-play in Israel's cannabis industry.
Given the country's significant domestic demand, move to legalize exports, and decades of R&D expertise, investors may want to take a closer look at Isracann and other companies that are building a presence in the country.
CFN Media's Cannabis Financial Network (CannabisFN.com) is the destination for savvy investors and business people profiting from the worldwide cannabis industry. Viewers will see breaking news, exclusive content and original programming involving the people, companies and investments shaping the industry.
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