Cannabics Pharmaceuticals Inc. (OTCQB: CNBX) is moving into the Colombian cannabis market after agreeing to a joint venture with Bogota-based NewCanna Hub.
Cannabics, headquartered in Tel Aviv, uses emerging drug-screening tools and AI to create cannabinoid-based therapies for cancer that precisely match a patient’s profile. It produces slow release capsules with multifactorial compounds designed to treat a number of conditions. The capsules were vetted as a part of a successful clinical trial undertaken at Rambam Hospital in Israel.
Cannabics has signed a letter of intent to create an equal joint venture that will produce these capsules in Colombia, where NewCanna has a Good Manufacturing Practice certified facility.
NewCanna is focused on research, develop, cultivation, manufacturing, and distribution of cannabis. It also contains a think tank that dedicates itself to innovation and sustainability in Colombian cannabis, with an emphasis on ethical practices.
The two parties met at Davos, where the cannabis industry has descended for a week of networking alongside the World Economic Forum, and they will spend the next 30 days working on a definitive joint venture agreement. The plan is to seek international distribution agreements in relevant regulated territories for the slow release capsules.
NewCanna chief executive Santiago Londono said the partnership will be “pivotal” in providing patients with “the safest, most accurate, consistent and effective medicinal cannabis delivery system” on the market. He noted that Cannabics’ technology is clinically proven to be effective in ameliorating the quality of life in cancer patients, adding that his firm is interested in commercial ventures on other intellectual property that Cannabics is developing.
His opposite number at Cannabics, Eyal Barad, said the deal would help bring its technology to a far wider market and that his firm was excited about the potential to expand its global distribution network.
Israeli firms are on the brink of being allowed to export cannabis, but Cannabics is already a U.S. publicly traded company with an office in Maryland. Earlier this month it invested $1 million in another Israeli company, Seedo, which provides the cannabis industry with the world’s first fully automated and controlled indoor growing machine.