Special Report: A new law allowing for the export of medicinal cannabis out of Israel could shake up the global cannabis market, with ASX-listed stocks poised to benefit.
Israel’s parliament approved the measure late last month, together with a new regulatory structure to approve foreign ownership of Israeli medicinal cannabis operations, paving the way for the country to play a key role in the global medicinal cannabis market, which is expected to be worth $44.7 billion by 2024.
And while the move will likely impact a number of stocks, Creso Pharma (ASX:CPH) is well-placed to take immediate advantage of the changes, specifically via its 74 per cent stake in a joint venture with grower Cohen Propagation Nurseries.
Founded in 1958, Cohen is one of the most experienced agricultural companies in Israel and has significant operational know-how and proven capabilities in establishing high scale production greenhouses to international standards.
It owns and operates farms across south and central Israel with a total greenhouse capacity of 15.7 hectares / 38.7 acres.
Creso estimates that the JV could produce up to 2,500 kg of cannabis each year once its facilities are at full capacity, with the potential to sell domestically in Israel and now, globally.
The partnership means Creso will be able to supply previously unavailable cannabis strains from Israeli cannabis producers, particularly in Canada where it expects to get its cultivation license soon.