Kibbutz Gan Shmuel is expected to produce an annual 5 of Cannabis Medical Tissue each year, in cooperation with the successful Canadian cannabis corporation Kronos Group, as part of an agreement to put the joint company on the global cannabis map. A chain of growth, production, supply and research laboratories will be established on the kibbutz grounds: "We will produce quality cannabis at the best price in the world".
Soon, patients in Israel will be able to enjoy quality cannabis from original Canadian genetics at very low prices: the prestigious Canadian cannabis corporation,Kronos'(Cronos Group) Announced a new strategic cooperation for the production, distribution and research of medical cannabis in Israel - together with Kibbutz Gan Shmuel.
The kibbutz is old Gan Shmuel (Founded in 1913) is already one of the largest, most successful kibbutzim And the most developed in Israel, Which markets and markets a variety of products to 35 countries throughout Europe and Asia. Is also the owner of one of the country's most recognized and profitable trading areas - and is expected to expand further as it enters the world of global cannabis.
The Kronos Group holds full and partial ownership of a number of Canadian companies in the field of cannabis (Peace Naturals, In The Zone, WMMC, ABcann, Hydropothecary, Evergreen, etc.) and its management line is part of large global economic and hi-tech companies.
Kronos is pleased with the weather and growing conditions in Israel, which will enable the Canadian company to grow Canada's medical cannabis species throughout the year, saving huge amounts of electricity currently needed for growing under cold bulbs in the country.
The experience of Kibbutz Gan Shmuel in local and international trade, along with commercial and professional manpower and an expert in agriculture, will enable the new company, called Kronos Israel, to produce quality medical cannabis and manage all the links in the production chain, from the growth stage, And the pharmacies.
The new company expects to produce Cannabis at very cheap prices of $ 0.4 - $ 0.5 per gram of Cannabis only - which will break the local medical cannabis market, which is now growing at a cost of more than 1.15. In addition, the company is building a permit to export medical cannabis abroad - after the Israeli government officially approved the export program.
According to the memorandum of understandings signed between Kronos and Gan Shmuel, a huge greenhouse will be built in the kibbutz area, which will cover an area of 4 and will produce up to 5 tons of cannabis each year. In the second phase Kronos-Israel expects to expand to the production of up to 24 tons of cannabis a year - and then to 100 tons of cannabis per year!
Alongside the new incubator will be a large research laboratory, which will be spread over an area of 1 and will be used for testing, research, development of formulations and varieties, and more. The entire production chain will meet the GMP and GAP standards required in accordance with the provisions of the new cannabis reform, which will come into effect at the end of the year (2017).
"Not only will we produce quality cannabis at the best price in the world, establishing the system in Israel will enable us to stand on the international front of research and entrepreneurship in the field," he said Mike Gorenstein, CEO of Kronos. "The establishment of Kronos Israel is a significant step in raising the standard of medical cannabis production in the world and we are very excited about the new cooperation."
"We will invest between 6 and 7 for one million Canadian dollars in the first stage, and 25% of the production will go to export," noted Gorenstein, who according to his name is of course a Jew with an emotional connection to the Land of Israel. He also talked about the future cooperation of the new company with companies in Germany, the Cayman Islands and more. "We continue to look for distribution channels, mainly to EU countries, Central and South America, Australia and the US."
"Gan Shmuel is one of the most well-established kibbutzim with extensive experience in agriculture, manufacturing, industry and large-scale exports," he said David Sue, Chief Operating Officer of Kronos. "The collaboration will enable Cronos to produce cannabis at low prices and high quality and meet international demand."
Kronos will contribute to the new collaboration the knowledge required to grow medical cannabis, management capabilities and access to the company's current and future distribution channels worldwide. Gan Shmuel will supply the business codes and licenses received from the Ministry of Health for the whole chain of vertebrates, its extensive industrial experience, the unique commercial areas and the professional work force.
According to the understandings agreement, which has not yet been signed as a final and formal contract, Kronos will hold 70% of the growth and cultivation of the seedlings, as well as 90% of the production system, the plant and the distribution chain. According to estimates the agreement will be implemented within 3 to 6 months.
Kronos's shares in Canada are considered to be the most successful in recent times, with 2017 jumping more than 50.