Israeli company Panaxia, selected 18 months ago to set up a plant in New Mexico for producing medical cannabis products, has announced the signing of a new contract for setting up four more plants in the same style in other US states. The first plant began production six months ago.
The new agreement is with Canadian Bioceutical Corporation, listed on the Canadian Securities Exchange at a $70 million market cap. The Canadian company, which is active primarily in the US, will finance the project, provide the cannabis, and market the products in selected states. Panaxia will build and manage the factory, and provide all the elements of the drug other than the cannabis itself.
Panaxia managing partner Advocate Assi Rotbart says, "Last March, we started marketing the products from the New Mexico plant: 28 products, including sublingual tablets, lozenges, an inhaler, oils, etc. We discovered that we had incorrectly assessed the strength of the demand. The plant is now operating at full capacity, producing 10,000 units a month, which are being sold at $10-15 a unit (a sales rate that reflects $2 million in annual revenue, divided between Panaxia and US company Ultra Health, its partner in the factory, G.W.), and we are in the process of expanding it. The factories that will be built under the new agreement will be much larger."
The new plants will be set up in Arizona, Nevada, Maryland, and Massachusetts. The Canadian company is already actively marketing cannabis in Arizona and Nevada, while Panaxia and Canadian Bioceutical will jointly enter Maryland and Massachusetts. The plan is to operate some of the factories under this agreement by the end of the year.
Read more at Globes (Gali Weinreb)
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