The ex prime minister of Israel, Ehud Barak, has announced the acquisition of the cannabis store Givol which owns the full rights for the marketing of the international cannabis brand ‘Cookies’. It is expected that this decision will bring substantial economic benefits to all involved, as the country is approaching the opening of the CBD market in the coming months.
Intercure, led by former Prime Minister Ehud Barak, which owns the long-standing Israeli cannabis company Canndoc, has acquired control (50.1%) of a new Israeli company which owns the popular cannabis store Givol and the exclusive marketing rights in Israel of the international cannabis brand from California ‘Cookies’.
According to the company, this is the first step in the implementation of a new acquisition strategy towards the opening of the CBD market as well as the leisure market (“legalization”). “This acquisition will allow the company, subject to a supportive regulation, to lead the field of cannabis for leisure purposes, which is expected to grow to significant volumes in the coming years,” the company said in a report to the stock exchange.
It should be noted that cannabis exports from the United States are currently prohibited – neither for recreational nor medical purposes, unless it is Hemp – cannabis that contains less than 0.2% THC. This means that anyone who expects to purchase cookies in Israel soon will probably have to wait at least a few years, unless there is a significant regulatory change.
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Givol will be in charge of dedicated cannabis stores
Apart from the successful ‘Givol’ pharmacy, which is located on Hayarkon Street in Tel Aviv and will soon become a chain with branches in Haifa, Jerusalem, and Beer Sheva, the new company also owns Cookies, an American brand with a line of products and stores (‘Dispensaries’) in the USA.
The most immediate plans also aim to establish dedicated stores around the country for the sale of cannabis under the “Givol” chain. The chain will operate and brand in accordance with the concept of these international brands, out of a strategy to lead the Israeli leisure market that the company expects to be legalized soon. Indeed, a special committee is currently drafting the new cannabis laws.
“Combining the strengths of Canndoc’s knowledge, reputation and quality production capabilities with a focused strategy for the leisure market that includes establishing a dedicated and exclusive chain of stores in leading international brands such as Cookies, creates significant growth potential for the company, in addition to growing cannabis for medical use,” the company said.
During the last year since ‘Givol’ was first established, it has been conducted in close cooperation with Better, a company that competes with Canndoc. The Tel Aviv branch also bears the ‘Better’ logo and the company’s products are carried at the top of the publication of the inventory menus that the company distributes. It will be intriguing to see now how the branding will change.
Canndoc prepares itself for the legalization of the market
As mentioned, this is a new approach by Canndoc owners who are preparing for the legalization of the market. According to the CEO Alex Rabinovich in this morning’s report in conjunction with the report to the stock exchange, they “intend to examine making additional acquisitions as a means of accelerating the growth plan, leveraging their financial capabilities and establishing Canndoc’s status as the leading medical cannabis company in Israel.”
These days, Canndoc markets in the pharmacies in Israel mainly import products, all from the cannabis farms of the Canadian cannabis company Tilray in Portugal. In addition, last month the company signed an additional import of 1 ton of cannabis from Organigram from Canada. At the same time, the company grows its own varieties on various farms in Israel.
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