Israeli cannabis firm InterCure (TLV: INCR) is expanding into Canada and it will team up with a local producer to grow medicinal marijuana there.

The company hit headlines last year when it installed former Israeli Prime Minister Ehud Barak as chairman on a $10,000 a month salary. It has since cemented its status as the most prominent firm in the country’s burgeoning medicinal cannabis industry.

Now it has decided to launch an operation in Canada via its wholly-owned subsidiary, Canndoc Ltd. A filing to the Tel Aviv Stock Exchange this week announced plans to construct a Canadian indoor grow facility.

Canndoc will own 51% of the venture and contribute its growing experience, while the unnamed Canadian partner will hold 49% and provide the resources needed to construct it and distribute the cannabis it yields.

Roei Zerahia, chief executive at Canndoc, said that this was preferable to exporting Israeli cannabis to Canada due to the shipping costs involved.

Israel has a much more established marijuana industry than Canada and it recently legalized exports. That has set it up as a genuine rival to Canada in export markets, particularly Europe, which is on its doorstep.

Canadian cannabis producers are busy extending their tentacles across the globe, setting up operations in Latin America, Europe, Australia and Asia as they aim to dominate the global marijuana market. However, we are now starting to see companies in other countries fighting back by launching operations in Canada.

InterCure recently filed an initial public offering and announced plans to trade on the Nasdaq, a move that would give Israel’s medicinal marijuana industry its first foothold on Wall Street. InterCure has a market cap of 1 billion shekels ($280 million), but Barak and co think it could have a similar valuation to Tilray’s $4.8 billion after listing on the Nasdaq.

The firm has embarked upon a U.S. roadshow in a bid to drum up interest among investors, and they may be interested to learn of its plans north of the border. Back in Israel, it recently set up a second production facility to help meet its ambitious plans for international expansion.

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