Together Signs $55M Deal To Grow Cannabis For Canna-Tech

By J Rodrigo Safdiye.

Benzinga · 11/13/2019 20:26

By J Rodrigo Safdiye.

Together Pharma Ltd (TLV: TGTR), an Israeli cannabis cultivation company, has agreed to a $55 million supply agreement with Canna-Tech for an annual production of at least five tons, over five years. As per the agreement, Together Pharma will provide cannabis for $1.57 per gram, for a total of $7.8 million per year, and almost $40 million over the entire period.

Together Pharma will also supply packing services for up to $2.86 million per year. Over the course of five years, packaging services could amount to up to $14.31 million.

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"The agreement with Canna-Tech represents the realization of our strategy to create large-scale revenue," Together Pharma CEO Nissim Bracha said in statement. "Canna-Tech is led by excellent businesspeople with major business experience in Israel and abroad and we are ready to immediately fulfill the agreement at the Ashkelon farm in order to supply quality cannabis, according to the new regulation, of the highest standard."

Canna-Tech owner Shmuel Capuano said, "We are happy about the connection with Together in order to bring a new line to the Israeli and world cannabis market. We are working according to a detailed and precise multi-year plan and we found we had a joint language, personal relations and immediate connection with Together's owners, so that we can realize our vision and bring about change and a real remedy to patients."