cbdMD Stock Trading Down After Announcing Deal With IM Cannabis Corp. To Enter Israel

Cannabidiol brand cbdMD, Inc. YCBD has teamed up with IM Cannabis Corp. IMCC IMCC to enter the Israeli market.

Based in Charlotte, North Carolina, cbdMD reported Monday it has inked a binding letter of intent with the multi-country company operating in Israel, Germany and Canada.

Under terms of the agreement, IMC was granted the right to import, sell, distribute and market cbdMD’s products in the Middle Eastern country once the deal is closed and CBD is legalized for non-medical purposes in Israel as well as receiving all regulatory approvals.

Martin Sumichrast, chairman and co-CEO of cbdMD, is thrilled to partner with IMC.

"The cbdMD brand continues to grow internationally as we are now represented in over 30 countries,” Sumichrast said.

Oren Shuster, IMC’s CEO, shared Sumichrast’s enthusiasm.

“With this agreement, we will have the opportunity to shape the Israeli CBD market and leverage IMC’s new and expanding retail presence, distribution capabilities, and data-driven insights to reach our patients and future consumers with a leading brand such as cbdMD,” Shuster added.

According to a Manufacturers Association of Israel, a study conducted by Deloitte and the company's management assessment, the Israeli CBD market is expected to hit $475 million by 2025.

Israel is pushing to legalize adult-use cannabis later this year.  Currently, the country permits cannabis only for medical and research purposes.

IM Cannabis recently announced a series of acquisitions worth $3.7 million in cash to bolster its footprint in the Israeli medical cannabis sector, on the heels of announcing its preliminary second-quarter revenue projections would range between $11 million to $12 million, representing a 30% sequential growth.

cbdMD’s shares were trading 0.44% lower at $2.24 per share at the time of writing Monday morning.

Photo: Courtesy of Diyahna Lewis on Unsplash