Below is a complimentary institutional research note written by our Cannabis analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email firstname.lastname@example.org
Will Israel fully legalize the use of cannabis?
One of the most important international markets for Cannabis is Israel, and the only Canadian LP focused on that market is CRON. APHA has a 100% subsidiary, Nuuvera Israel Ltd, but the management of the company is incompetent and not focused. Also, TLRY has supplied medical cannabis products to Germany and Israel from its EU campus in Portugal.
On the most recent earnings Mike Gorenstein, Cronos Group Inc. Chairman, President & CEO, said:
“Subsequent to this quarter, in April 2020, Cronos Group completed its first export of bulk dried flower to Cronos Israel in order to sell PEACE NATURALS branded cannabis products for distribution in the Israeli medical market.
Cronos Israel will begin to build its distribution network and brand presence in this rapidly growing medical market. Concurrently with building our brand presence, we have worked with our JV partners at Kibbutz Gan Shmuel to bring the Cronos Israel facility online.”
He went on to point out that Israel is strategically an important international market for the Cannabis industry.
"The existing sophisticated legal framework for medical cannabis in Israel coupled with a less established black market due to Israel's stringent border controls, makes an exciting and potentially lucrative opportunity for Cronos Group. In April, Cronos Israel entered into a collaborative agreement with CannaSoul Analytics, a cannabis research company dedicated to developing scientific, intellectual property, medical products, and technologies. Under our agreement, CannaSoul intends to develop a commercial cannabis analytical testing laboratory on-site at Cronos Israel."
There was an article yesterday in the AL-MONITOR, that suggested that full legalization is close in Israel, which would be great for CRON!
“Of the 34 new ministers, including the prime minister, 19 support fully or to some extent legalization of cannabis use, or at least the regularization of the medical cannabis market; six are undecided, with a tendency to support it; five have not declared their position in any organized manner; and only three have declared that they oppose the legalization idea. In terms of percentages, 57% to 75% support advancing legislation on cannabis, and only 9% to 24% are opposed.
The Cannabis Magazine news site shared with Al-Monitor results of a public opinion survey on the issue, conducted in August 2018, which found similar support (71%) among the general public.”
Read more here.
CANNABIS RETAIL SALES
COVID-19 has disrupted day-to-day operations for many marijuana businesses. In the face of uncertainty, retail cannabis operators have been keeping a close eye on shifts in purchasing behavior. This chart highlights the daily sales trends for select markets during this period.
W.Va, Medical marijuana looking at Spring 2021 start date
The Medical Cannabis Act is, approved in 2017, allows cannabis to be used for certified medical use by state residents with a severe medical condition. The law provides for ten grower permits, ten processor permits, up to 100 dispensary permits, and unlimited lab permits.
The state Office of Medical Cannabis received 285 total permit applications in February. State Department of Health and Human Resources Secretary Bill Crouch said it would be next year before medical marijuana can be offered to state residents through a state-run program.