Creso Pharma Ltd. said it is collaborating with Cohen Propagation Nurseries Ltd. to grow medical cannabis in Israel.
Creso, a Sydney-based developer of cannabis and hemp-derived products, and Cohen, an Israeli agriculture company, will form a joint venture that will develop a cultivation facility operating out of one of Cohen's existing greenhouse facilities.
The move marks Creso Pharma's entry into the Israeli medical cannabis market.
Cohen, which owns and operates farms across south and central Israel with a total greenhouse capacity of 15.7 hectares, has already applied for a license to grow cannabis for medical purposes.
Subject to confirmation by local Israeli regulators, the application will be transferred to a new company in which Creso will hold a 74% stake.
Amit Edri, Creso's international business development executive, will lead the JV team through the development and licensing of the project. The facility is expected to produce up to 2,500 kilograms of cannabis annually.
Creso said it will also lend $1.5 million to the JV to fund the development of the facility.