If you’re like most cannabis investors, you probably own U.S. cannabis stocks. That makes sense. The U.S. is the largest and fastest-growing cannabis market in the world.
However, it would be a mistake to limit cannabis investing to just the U.S. International cannabis markets also offer exciting investment opportunities.
Israel has quickly evolved into one of the most promising international cannabis markets. After Israel updated its medical cannabis laws to be more inclusive, the tiny country of 11 million has seen its number of medical cannabis patients explode higher.
Here are some more details and a chart from mjbizdaily.com.
The number of authorized medical cannabis patients in Israel has more than doubled in the past two years – topping 70,000 – despite persistent supply and regulatory challenges, according to new data from the Israeli Medical Cannabis Agency (IMCA). Israel recently overtook Germany as the top importer of medical cannabis flower in the world, according to data compiled by MJBizDaily and Tel Aviv-based Israeli Cannabis Magazine.
Israeli Cannabis Market Should Continue to Expand
Lawmakers are working on a bill that would legalize recreational cannabis by the end of the year. Here are some more details from mjbizdaily.com.
Israel announced a road map to legalize cannabis potentially within one year and, in doing so, would create a regulated market for adult-use marijuana products largely based on Canada’s legalization model.
The country’s justice minister, Avi Nissenkorn, said a legal memo likely will be published by the end of November (2020), which could be presented to the Knesset in December for an initial vote, Israeli Cannabis Magazine reported.
It’s time to make progress and legalize cannabis in Israel,” Nissenkorn said, according to the Times of Israel newspaper.
Israel’s cannabis market is flourishing with strong medical sales and progress towards recreational legalization. This is creating an opportunity that cannabis investors need to know about.
Today I am going to reveal a cannabis stock that is in a position to capitalize. This early industry leader is valued at $300 million and just signed a deal to merge with a U.S. investment company and uplist shares to the U.S.-based NASDAQ exchange.
Israel’s Rising Cannabis Star
Canndoc, owned by InterCure Ltd. (TLV: INCR, OTC: IRCLF), is a rising medical cannabis star in Israel. Canndoc was founded 13 years ago and has developed into an industry leader with some of the best products in the industry.
The company has capitalized on Israel’s high-growth medical cannabis industry, but Canndoc stands out for a number of reasons.
Proven Business Model
Canndoc is the most profitable company in Israel’s growing legal cannabis market with a Q4 2020 expected EBITDA annualized run rate of greater than US$10 million and positive free cash flow.
First Mover Advantage
The company holds a significant share of the medical market, which grew 40% in 2020. Canndoc is one of the first companies to import medical-grade cannabis to Israel.
Progressive Operational Platform
This pot powerhouse has a highly profitable, vertically integrated medical cannabis platform.
Canndoc’s exclusive partnerships with leading cannabis brands and suppliers include Cookies, Charlotte’s Web, Aphria, Tilray, Organigram, and more.
Robust Balance Sheet to Support Expansion
The company has the cash to drive significant expansion organically and through strategic M&As. Canndoc expects to expand cultivation to over 90 tons per year and open four additional pharmacies in 2021.
Looking forward, I expect even more growth. Canndoc just closed a deal that should give the company a huge injection of fresh capital and has opened up potential expansion possibilities.
Also, Canndoc owner InterCure Ltd. (TLV: INCR, OTC: IRCLF) just signed a deal to merge with a large, US-based investment company and uplist its shares to the US-based NASDAQ stock exchange.
Here are some more details from Bloomberg.
InterCure Ltd., the Israeli cannabis producer whose chairman is former Prime Minister Ehud Barak, agreed to be acquired by blank-check company Subversive Real Estate Acquisition REIT LP with the intent of listing its shares on the Nasdaq. The transaction will value Tel Aviv-listed InterCure, doing business as Canndoc, at $300 million and is scheduled to be completed in April.
In the meantime, InterCure’s share price is still trading 50% below the 52-week high.
The Big Picture on the Israeli Cannabis Market and Canndoc
Israel is already one of the fastest-growing cannabis markets in the world. That growth should accelerate with the country looking to legalize recreational cannabis by the end of the year.
Canndoc is an early industry leader in Israel. The InterCure deal to merge with Subversive and uplist to the NASDAQ will give the company a big capital injection to fuel even more growth.
We’re going to keep a close eye on InterCure and Israel as the industry continues to grow.
About the Author & Cannabis Stock Trades
Michael Vodicka is an equity analyst with more than 20 years of experience trading and investing. His research has been featured in some of the industry’s most respected publications. He has been investing and leading investors in the cannabis sector since 2013.
Mr. Vodicka brings his expertise and guidance to the members of Cannabis Stock Trades.
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