Isracann Biosciences Inc - President and CEO, Darryl Jones
President and CEO, Darryl Jones
Source: Investing News Network
  • Isracann (CSE:IPOT) is turning its attention to the increasing demand for high-quality cannabis in European markets
  • The company cited ongoing complications brought on by COVID-19, which are having a growing effect on global supply chains
  • Due to Israel’s location and environmental attributes, the company believe it is well positioned to pick up the slack
  • Announced alongside this news, local authorities have completed a mandatory security inspection of Isracann’s Hefer Valley facility
  • Isracann (IPOT) is currently up 15 per cent, with shares trading at C$0.23 and a market cap of $30.52 million

Isracann (CSE:IPOT) is turning its attention to the increasing demand for high-quality cannabis in European markets.

As COVID-19 extends its stay into the second quarter of 2020, a growing pressure on global supply chains is beginning to affect the cannabis industry.

In February this year, a European Cannabis Report noted that initiatives to increase European supply are being fragmented.

Germany is currently managing regulatory framework developments, Italy is in negotiations with a Canada-based contractor to satisfy its demand, and Denmark is importing almost all of its requirements from various corners of the globe.

The combination of these factors, the report said, points to a lag in overall European supply.

Isracann intends to address the predicted undersupply by leveraging its facilities in Israel, where it has an ideal climate for cannabis cultivation, excellent domestic input supply, and easy access to major Mediterranean shipping routes.

The company recently announced a distribution partnership on the island of Malta and says that it is currently exploring further opportunities for the rapid shipment of its products to key European markets.

Matt Chatterton, Vice President of Operations at Isracann, commented on the company’s progress at its farm in the Hefer Valley region. 

“We engaged a specialist Israeli consultant to advance the certification of the farm to EU-GMP standards thereby paving the way for our export distribution.

“In addition, the related post-harvest export facility is nearing readiness and should be completed next week,” he said.

Alongside this news, the company also reported that a mandatory security inspection of its facilities had been completed today by local authorities. 

There were no reports of deficiencies, and the certification consultant is currently preparing a final report for submission to the Ministry of Health.

Isracann (IPOT) is currently up 15 per cent, with shares trading for C$0.23 at 1:26pm EDT.

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