Israeli Cannabis Producer CannoMed Eyes European Market, Builds Cultivation Facility

CannoMed, an Israeli cannabis company, announced Tuesday it has signed a 25-year leasing agreement for an area of 11 square meters (118.403 square-feet) in Israel.

The company plans to construct a 66 square-feet indoor cannabis cultivation facility on the grounds. 

CannoMed is traded in the Tel Aviv Stock Exchange under the symbol CNMD.

On May 15, Israel’s Economy Minister Eli Cohen signed the final approval for companies to start exporting cannabis products worldwide, with Europe being the first market in mind of most producers.

Ten Annual Tons Of EU-GMP Cannabis

CannoMed said the facility is designed to comply with EU-GMP standards and is expected to have a production capacity of about 10 tons of cannabis per year.

The purchased lot is also expected to include extraction, processing and packaging facilities. CannoMed plans to build everything up to European standards in order to make Europe the main destination of the product grown in the facility.

The company announced that operations in the facility are due to begin in the fourth quarter of 2020.

CannoMed's controlling shareholders are Manor and Kfir Gindi, who purchased in the company majority in 2019. The two brothers are part of the Gindi family, a prominent family of real estate developers.

Featured image: CannoMed’s new facility’s projected outside look. Courtesy of CannoMed.