Israeli company Tikun Olam inaugurates its own cannabis factory

After about a year and a half of limited activity, transfer of ownership and replacement of its management backbone, the old Israeli cannabis company Tikun Olam returns to full activity.

This week, the company received an IMC-GMP standard certificate for its cannabis plant in the industrial area located in the north of the country, which allows it to once again produce and package its cannabis products independently.

Acceptance of the standard makes Tikun Olam, acquired and managed by Cannbit, one of the few companies in Israel that holds the full required licenses for the entire production chain – from the cultivation and growth phase to distribution to pharmacies. The company estimates that sales of products from the new plant will begin during the next month.

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Tikun Olam business advances thanks to their new factory

The cannabis factory, whose construction lasted over two years, covers an area of ​​2,000 square meters built and tens of millions were invested in its construction. It allows Tikun Olam to no longer depend on another company to provide it with extraction and packaging services. 

In recent years, the company has carried out the activity through the Bazelet company, but from next month the two will separate. 

As part of the separation, Tikun Olam is also giving up the transportation services provided by Bazelet. Instead, it will use the services of Sala, one of Teva’s leading pharmaceutical distribution companies in Israel in this field. This connection is of course based on the recent appointment of the former CEO of Teva Israel and Salla, Avinoam Sapir, as the CEO of Tikun Olam – Cannbit.

According to the company in an announcement to the stock exchange on Monday morning, July 20th, “the company intends to continue to act in order to prepare the plant to comply with the EU-GMP standard for export for sale of medical cannabis products, subject to obtaining an export permit from the Ministry of Health.” Upon receipt, the company will be able to export its products to Germany, Austria, and Switzerland as part of the company’s agreement with FETTE PHARMA.

As a reminder, Tikun Olam was recently criticized after announcing that it was starting to market some cannabis oil products at prices hundreds of percent higher than before. Following protests and calls for a boycott, the company backtracked and froze the rise in prices.

Tikun simultaneously owns two breeding farms, one in Kfar Yehoshua and a most recent one in the settlement of Neot HaKikar near the Dead Sea. The company currently markets a relatively limited inventory of products in pharmacies, which mainly includes cannabis-based products which are sold in a lower category than those in which they were sold in the past.

Tikun shares skyrocketed after the announcement

Following the announcement to the stock exchange, the company’s shares jumped more than 8% and the company is currently traded at a value of $55 million (NIS 189 million), one of the highest in the local cannabis market. 

As mentioned, in the framework of the agreement with the previous owners of the company, Tzachi Cohen, the Israeli ‘Tikun Olam’ will be able to market its products in Israel and in a few individual countries in Europe only.

The company itself said that “the IMC-GMP standard is the quality standard required for the manufacture of medicines. The comprehensive audit included, among other things, an inspection of the production facilities, production conditions, quality assurance, quality control, and a trading house adjacent to the plant (IMC-GDP standard, adequate distribution conditions standard), all in accordance with IMC-GMP standards.” 

Avinoam Sapir, CEO of the company, stated that “the production standard we received has very great strategic implications for us. The standard will allow us to re-manufacture ourselves at full swing in a pharmaceutical plant, and provide our patients with a continuous supply of blue-and-white, high-quality, advanced and safe products, behind which is the knowledge and R&D capabilities of World-Cannabis Repair.“

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(Featured image by energepic.com via Pexels)

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