IMC announced that its partner Focus Medical has successfully imported medical cannabis from Spain to Israel. The company plans to distribute 80% of the products through home delivery and the remaining 20% through an existing distribution outlet. Until such time, the company plans to import additional volumes of medical cannabis from supply partners in Spain, Canada and elsewhere. In the meantime, Focus will continue to work with IMCA to develop distribution channels in Israel.
As the number of medical cannabis users in Europe and Israel increases, the demand for products made from cannabis will also increase. This demand will further drive competition among the Company and its competitors. Moreover, a successful import would also help the Company’s business. Its success would give rise to a growing number of diversified products and different pricing strategies. IMC would therefore benefit from this opportunity to expand its international footprint and increase its market share.
The successful import of medical cannabis to Israel demonstrates the positive impact of IMCA-GDP certification. According to the regulations, an export permit will only be granted once the applicant has secured domestic marijuana news supply of cannabis and has a valid business license issued by IMCA. The process to obtain an export permit is currently ongoing. The application period for export permits is set to expire at the end of Q1 2021.
In addition to IMC-IMCC, Focus Medical’s successful import of medical cannabis from Spain to Israel highlights the importance of establishing intellectual property and brand recognition in the Israeli market. While the company has successfully imported medical cannabis into Israel, it will face tough competition in the Israeli market from a host of licensed cultivators and purveyors of medical cannabis products.
Adjupharm, a German medical cannabis company, has entered into a supply agreement with Northern Green Canada Inc. through which it will import three new strains of medical cannabis. Adjupharm sources its products for the German market from EU-GMP suppliers. The company expects to commence its supply from NGC in Q2 2021. The German import license has already been granted to Focus Medical and its partners.
IMC has been active in the medical cannabis industry since 2008 and has been developing proprietary processes in its operations. By licensing its brand in Israel, the company plans to expand its distribution and marketing efforts internationally. IMC’s brand name will serve as a unique branding asset that will attract investors worldwide. It will also increase liquidity of its Common Shares. Further, IMC’s NASDAQ listing will help to optimize its costs of capital.
The legal process in Israel is governed by IMCA, the Medical Cannabis Agency. While the agency is not responsible for the import of medical cannabis from Spain, it will issue permits to patients who qualify. The IMCA has established a list of medical conditions that can be treated by medical cannabis, and this list is updated from time to time. Patients with conditions not listed in the list are able to apply for exceptions based on extraordinary grounds. IMCA requires that the applicant follow the procedures of Procedure 106.
The Company’s success depends on its ability to secure distribution partners and suppliers. The Company’s ability to secure these relationships will depend on the ability to produce desirable and effective products. It will also depend on whether lemon haze auto it is able to comply with the requirements of the regulatory authorities and implement new partnership plans successfully. Failure to secure these partners or suppliers will adversely impact the Group’s financial condition and results.
As part of the Trichome Transaction, Focus Medical will import 1,200 kilograms of premium medical cannabis from the licensed producers of Canada. TJAC is a subsidiary of Trichome Financial Corp., which also owns MYM. Through the deal, IMC intends to expand its operations to Canada’s recreational marijuana industry. In the interim, the company plans to increase the amount of medical cannabis it exports to Israel.
IMC’s quality controls are one of its highest priorities. Its quality controls and training program help the Group ensure consistent, high-quality products. IMC’s quality control systems ensure compliance with strict guidelines. While it has rigorous procedures in place, there is no guarantee that a supplier will follow the rules. It is not possible to guarantee that a manufacturer will comply with IFRS standards, and if it does, it may be liable for product liability and other risks.