Publicly Traded Israeli Cannabis Companies to Watch

Although the state of Israel is known for its state-of-the-art weapons and military defense systems, the county is now becoming well known for its scientific research focused on the medical uses of marijuana.

Israel has been researching the benefits associate with cannabis for the last 50 years and the country’s pro-cannabis standpoint has made it attractive to pharmaceutical and biotech companies. Investors are able to invest in a few publicly traded Israel-based cannabis companies that trade on the United States stock exchange. These companies include One World Cannabis (OWCP) and BreedIT (BDRT) and Cannabics Pharmaceuticals (CNBX).

One World Cannabis (OWCP)

One World Cannabis, founded in 2014, is an Israeli company focused on the research and development of cannabis-based pharmaceuticals and treatments focused on a wide variety of medical issues. They recently completed a reverse merger with an American company called Dynamic Applications. One World Cannabis filed a request to change its name to OWC Pharmaceuticals; the company trades on the over-the-counter exchange under the symbol ‘OWCP.’ The stock has been trading for less than 2 months and the company raised $2 million through private investors in Israel, in the United States, and in Singapore; the company is expected to go through another round of funding soon.

One World Cannabis’ management team includes

  • Dr. Yehuda Baruch: “The CEO of Israel’s Abarbanel Hospital and previously the head of Israel’s medical cannabis program for five years”
  • Dr. Alan Shackelford: “A leading U.S. physician and expert in the utilization of cannabis as medicine, will be moving to Israel to head up the research as “principal investigator.” Dr. Shackelford is widely known as the doctor who prescribed 5 year old Charlotte Figi cannabis to combat the 300 seizures she experienced weekly. “After the first dose the seizures stopped,” Shackelford reports. “She went from 300 seizures a week to none.”

Dr. Shackelford will lead the research team and conduct clinical trials on fibromyalgia, psoriasis/basal cell carcinoma, post-traumatic stress disorder (PTSD), and seizures. The company plans to conduct a second round of clinical trials on Crohn’s Disease, Parkinson’s Disease, Tourette’s Syndrome, migraines, chronic pain, Alzheimer’s Disease, pediatric epilepsy, prostate cancer, and diabetes.

Stock Information

The stock is currently trading at $0.22 with a market capitalization of $16 million. The company has 73,383,195 shares outstanding with a float of 4,000,000 shares.

Future goals of OWCP

The future goal of One World Cannabis is to be a leader in the research and development of cannabis based medicines. To do so, the company wants to provide consulting services to governments looking to implement medical marijuana legislation.

BreedIT (BRDT)

BreedIT Corp, through its Israeli subsidiary, BreedIT Ltd., is the developer of highly sophisticated agro-breeding solutions for plant breeders and researchers. BreedIT’s proven iBreedIT – the Intelligent Decision Support System (IDSS) for breeders services the plant breeding needs of corporations, research and government institutions. BreedIT’s IDSS provides advanced solutions for generating and disseminating knowledge aimed at assisting breeders to plan, manage and analyze their breeding data and to perform research activities quickly and effectively.

The total addressable market for seeds is $42 billion. BreedIT is not only a provider of software for cannabis companies but also has had an impact on seed innovation in other crops, including, vegetables and fruits.

BreedIT management team

  • Professor Haim Rabinowitch: The chief scientific advisor responsible for making the cherry tomatoes that we consume from the grocery store consistently disease resistant and with a longer shelf life.
  • Alan Shackelford: The chief scientific officer at One World Cannabis joined BreedIT’s Scientific Advisory Board.

Partnerships

  • April 14th 2014: BreedIT announced a partnership with a cannabis grow company called Sheifa Le’Haim. Professor Haim Rabinowitch previously worked with Dr. Barry Nadel, who is the lead grower for Sheifa Le’Haim. The partnership will try to develop unique cannabis strains.
  • August 21st, 2014: Announced the formation of KanaboSeed, a 50/50 joint venture with another cannabis growing firm called Seach. Seach is 1 out the 8 licensed growers in Israel permitted to cultivate marijuana. Located in Sharon, Israel, the facility has state of the art greenhouses on 10 acres. On December 2nd, 2014, BreedIT announced through its joint venture KanaboSeed that they applied to the Israeli Ministry of Agriculture & Rural Development Plant Breeders’ Rights Council for the registration of two new cannabis strains.

Investments

On May 15th 2014, BreedIT announced they have received an initial investment of $200,000 out of a potential $800,000 investment from INTIVA Pharma. INTIVA Pharma has a portfolio of real estate in Colorado and has also invested in One World Cannabis, as well as in a number of other Canadian licensed producers.

Stock information

The stock trades on the OTCBB at a share price of $0.075. The company has 92,049,512 shares outstanding, translating into a market capitalization of $6,903,713.

Cannabics Pharmaceuticals (CNBX)

Cannabics Pharmaceuticals is another Israeli company that was founded in 2012 that is focused on developing cannabinoid based medicines. The company’s lead drug in the pipeline is Cannabics SR, “a long acting medical cannabis capsule designed for cancer patients as a palliative treatment.” The Cannabics SR capsules contain 2 oil based compounds that give the drug an instant and extended release. The instant release portion of the capsule contains pure cannabinoid extract that takes roughly 20 minutes to 1 hour to kick in. Then the consolidated cannabinoid portion of the capsule slowly releases active cannabinoids that will provide the patient with 6 to 8 hours of strength. The capsules contain 10mg of active cannabinoids which is 99% THC and less than 1% CBD.

Cannabics has filed a patent in both Israel and the United States for the technology used with its ‘Cannabics SR’ product.

Notable member of the management team

  • Mr. Shay Avraham: “Co-founder of Cannabics Inc., founded in 2012, and is the founder of Seach, one of the oldest and largest medical Cannabis farms in Israel. Seach is an official supplier of medical grade Cannabis to the Israeli Ministry of Health and specifically licensed to grow and distribute medical cannabis to authorized patients. Shay is the recent Chairman of the Israeli Medical Cannabis Growers Council.”

Partnerships

  • November 6th 2014: “Cannabics Pharmaceuticals announced that it has executed an IP Licensing and Collaboration Agreement with Kalapa Holding (Spain) for the production and distribution of Cannabics SR medical cannabis products in the Spanish market.” Kalapa is a medical marijuana and hemp grower in Spain; with their expertise, Cannabics SR will now be compliant with Spanish laws.
  • December 18th 2014: “Cannabics Pharmaceuticals announced that it has executed a letter of engagement with Mountain High Products in Colorado. The agreement is for the manufacturing and distribution of Cannabics SR medical cannabis products in Colorado.” Mountain High Products specializes in making cannabis infused products that include edibles and concentrate products.
  • January 29th 2015: “Cannabics Pharmaceuticals executed an agreement with Rambam Medical Center (Israel) to undertake a controlled pilot study utilizing Cannabics Capsules as a palliative treatment to improve cancer related Cachexia and Anorexia Syndrome in advanced stage cancer patients. The first patient recruitment is expected to take place in the next 45 days. Rambam is a world renowned academic hospital acknowledged for their cutting-edge research projects and integration of innovative new therapies and treatments to over 2 million residents of Northern Israel.”

Stock information

Cannabics Pharmaceuticals (CNBX) is traded on the OTCBB and is currently trading for $0.25. The company has a market value of $30,190,000 with 100,633,333 shares outstanding.

Summary

The Israeli cannabis research and development efforts are unmatched by any other country. Israel is the pioneer in medical marijuana and we should continue to see new clinical trial data that supports the use of cannabis for medicinal purposes. Now that companies can raise capital in the public markets, as opposed to relying upon government grants, we should see an increased number of publicly traded Israeli medical marijuana companies.

http://www.intivacorp.com/pharmaceuticals/

http://www.greenprophet.com/2015/01/dr-cannabis-alan-shackelford-puts-medicine-into-cannabis-in-israel/

http://www.haaretz.com/business/.premium-1.632104

http://seekingalpha.com/article/2250713-breedit-breeding-the-next-generation-of-medical-marijuana

http://www.marketfy.com/content/41394-breedit-brdt-slides-022614

http://departments.agri.huji.ac.il/plantscience/staff-eng/rabinowitch.html

http://www.cannabics.com/

 

Michael Berger is the president and founder of Technical420.com, an online research firm for publicly traded cannabis companies. Michael started following the cannabis industry in 2012 while working at Raymond James Financial. Michael worked in the equity research department at Raymond James before leaving to start Technical420. Technical420 utilizes an algorithm developed by Michael that merges technical, fundamental and sentiment data to yield the most comprehensive analysis.

TECH420