Ashkelon, November 14, 2019 – PRESS RELEASE – Univo, a company which owns a plant producing medical cannabis products under the new regulation of the Ministry of Health, to IMC-GMP standard, as well as a cultivation farm for medical cannabis under construction, reports a strategic agreement with the pharmacy Shor Tabachnik, which already currently supplies medical cannabis products.
As part of the agreement, Univo will supply 2 tons of medical cannabis products each year starting from the coming days, for 3 years. According to medical cannabis prices sold today in pharmacies, this agreement could generate revenues of over ILS 20 million in the coming year and over ILS 60 million in the next three years. It was also agreed between the parties that each party may cancel the agreement by a 90-day advance notice to the other party. This agreement joins an agreement for the supply of up to 1 ton of medical cannabis products to the pharmacy Max Pharm in Holon, which currently supplies medical cannabis products. Holon is one of the 10 largest cities in Israel with more than 200,000 residents, and borders the cities Tel Aviv, Bat Yam and Rishon Lezion.
Golan Bitton, CEO of Univo: “The agreement with Shor Tabachnik, which takes immediate effect, realizes Univo’s strategy to strengthen our presence in the market and expand our distribution chain, whether through agreements with pharmacies or through the acquisition of a pharmacy which we reported this week. Univo is currently operating independently of other entities, and until cultivation begins at Amit Farm, we are buying raw materials from existing farms. The company has already begun production and sale of medical cannabis products under the new regulation.”
Univo aims for full control of the value chain. Univo’s ability to determine the type, quality and scope of the cultivation, and in addition to produce products for a range of necessary medical indications and administration methods, as well as personally reaching the specific patient who takes medical cannabis and receiving direct feedback, positions us as the only company in Israel that holds full control throughout the value chain, from the planting, cultivation, production, distribution and sale at the pharmacy. This control allows maximization of the profit from the sale of each gram of medical cannabis and the saving of unnecessary costs, thus creating an exceptional competitive edge, including development of products that are based on a database of the patients who visit the pharmacies.
In recent weeks, the company reported an investment of ILS 12 million by the Avisror Group – ILS 6 million in Amit Farm where Univo will grow a significant quantity of medical cannabis, and ILS 6 million for investment in Univo according to a share price of ILS 4.89, a 52% premium on the share price, as closed on the trading day prior to the report, and in consideration for 0.5 million stock options. The investment in Univo reflects a post-money value of around ILS 130 million.
Amit Farm is a medical cannabis cultivation farm owned by the company, which is in advanced stages of construction. The farm is intended to secure for Univo independent cultivation of medical cannabis, such that the company will operate from production and marketing, from seed to product, to GMP standard, to distribution of the products through pharmacies to patients.
Alongside the business operations in Israel, Univo is exploring markets outside of Israel, and is preparing for export, in due course, including through preparations for obtaining EU-GMP certification for the plant with the aim of supplying products to customers with which sale and distribution contracts have been signed. To the best of the company’s knowledge, when permission is granted to export medical cannabis products from the State of Israel, according to the instructions of the IMCA, it will only be possible to export medical cannabis products that were produced in GMP-certified plants, which the company holds.
Univo has an active R&D center and is the only cannabis company that has signed a development agreement with Veoli from “Sanara” (Teva and Philips) for the development of a unique formulation for the Veoli inhaler.
Univo’s plant spans an area of 750 sqm and includes an R&D laboratory and special production systems. Univo’s cultivation area extends over several thousand sqm in the south of Israel, such that through production and distribution costs in Israel, which are low relative to the rest of the world, the company expects to maintain maximum value between production and sale. Univo is one of the world’s only medical cannabis companies which manages development from planting, cultivation, production to the supply of medical cannabis products (from seed to market) and distribution through pharmacies.