Marijuana Business Magazine - May-June 2018

E ver since Hebrew University Professor Raphael Mechoulam became the first person to identify THC more than 40 years ago, Israel has been a trailblazer in medical marijuana research and cultivation science. But in terms of medical marijuana business opportunities, Israel has been somewhat of a disappointment for North American entrepreneurs. Despite medical marijuana’s social acceptability in Israel, the country’s program includes a modest 30,000 patients who get their product from pharmacies and a handful of dispensa- ries supplied by eight licensed growers. Israel approved cannabis exports in August 2017, and more than 500 growers applied for cultivation and export permission. But in February, the government suspended the plan, leaving several companies and investors facing significant financial losses. Still, export supporters continue to push, and it’s possible the government will permit exports this year or next. Here’s what you need to know: • More immediate opportunities exist in Israel’s cultivation science and technology sector, which received a boost when Israel decided to issue cannabis research per- mits. “Here, I believe the opportunities are in the medical research and technology innovation,” said Guillermo Delmonte, president of the international division of Organigram, a federally licensed grower in New Brunswick, Canada. • Roughly 50 Israeli companies are cultivating plants commercially or for research and development, which opens opportunities for U.S.-based extractors and processors to partner with Israeli businesses or researchers. • In 2016, international investors poured more than $100 million into Israeli marijuana firms, Reuters reported. For example, California- based Steep Hill Labs last year entered into a partnership with iCan, an Israeli medical marijuana company, to establish a testing lab in the Middle Eastern country. • Aside from iCan, other Israeli mari- juana entities are partnering with U.S. businesses, giving those companies potential access to the Israeli market. ISRAEL Industry: Medical Marijuana Israel GOING GL BAL 66 • Marijuana Business Magazine • May-June 2018 A