After the panic for Bitcoin, which has since passed, recently came to Israel what can undoubtedly be called the "panic for cannabis": No less than 6 publicly traded companies in the field of cannabis began operating in recent months in Israel - 4 from them just this week. updating (10.4 - 16: 00) - a seventh company joined the cannabis field. Update (30.4) - Eighth company joined. Is it time to buy Cannabis shares?
Although most of them have no experience in the field of cannabis in general, which have been integrated into empty Bursa skeletons, some of these companies are able to benefit from inflating the value of their shares on the stock exchange overnight, sometimes hundreds of percent, only on the basis of announcements of future agreements or theoretical plans only for the establishment and production of cannabis for local sale And export.
But there are also more serious cases where the announcements to the stock exchange and investors are not only "unfounded" or "purely theoretical," but contain incorrect and false information, so it is important for investors to carefully examine the background of each company and its true intentions Before buying Cannabis shares.
For example, the Canadian company "Namaste"(Namaste Technologies), a few months ago (27.12.17), published an agreement in principle with an Israeli company called"Bar Lev Agricultural crops"He said. The official statement states that Bar Lev is no less than Israel's largest authorized manufacturer of medical cannabis.
This statement is of course far from correct. "Bar Lev" has never raised medical cannabis in Israel and does not yet have such a license - which did not prevent the company's share price surge following this announcement in many percentages on that day. Since then it has been steadily declining every day.
In recent months, Cannabis shares have become the hot name Also on the Israeli stock exchange As mentioned, as of today (Sunday) already 7 Companies have declared that they intend to enter this area and issue Cannabis shares - some of them with cannabis background and experience, but in some of them do not possess cannabis properties in general, without any background in cannabis cultivation or production and without sufficient licenses for activity in the industry.
At the end of 2017 registered pioneers, companies "Mediocre"(Medivie) and"Will be setTogether, which were the first to merge their naked stock market skeleton with a dedicated private company that opened for entry into the field - Mediwi with "Hey Parma"(Hi Pharma) and" defined "with"Globus PharmaGlobus Pharma "- both of which have gained increasing popularity among enthusiastic investors who have been waiting to enter the plant and acquire Cannabis shares.
Following them, just last week and within a few days, 4 announced that it had entered the field and issued new Cannabis shares:Amir Marketing"From the Farmer's Association jumped after announcing an expected investment in the"BOL Pharma"And"D-Pharm"(D pharm) that merged with"Youn"(UNV Medicine),"Optra"(Ophectra) that merged with"David Medical"(Holyweed Medical) and"Next Jen"(Nextgen Biomed) might do so with"As a Pharma"(Kitov Pharma).
10.4 announced a seventh company that entered the cannabis field:Direct Capital(Direct Capital).
Except for a small drop in the weekend following Post On the cessation of the German medical cannabis tender, there has been an increase of tens and hundreds of percent in the value of Cannabis shares since the announcement - prompting investors to transfer large sums to invest in these companies.
But like any other virgin field, cannabis also has great potential for profit, but there is also a risk of falling into the trap. While this is not a "pump & dump" phenomenon, it is certainly possible to find things that should be noticed in the companies' reports to the stock exchange.
(Note: the order of names on the list is chronological only by the date of reporting on joining the cannabis industry and without any other meaning)
Mediway - High Pharma
In the end, 2017 became a nondescript stockbroker for Cannabis after a merger with a new private company called Hi Pharma, which holds temporary permits (not licenses) from the Ministry of Health for the cultivation, Breeding, production, storage and distribution of the plant in a kibbutz in northern Sharon.
Together, the companies plan to enter the medical cannabis industry, led by the entrepreneur Menachem Cohen, The group leader, who has managed to sign since On an agreement With the veteran Dutch cannabis company "Barneys Pharm".
The signing with Barnease is definitely equivalent to cannabis, and the company is expected to begin construction activities in the coming weeks, but they still have no tangible cannabis assets in Israel.
Taste - Globus Pharma
"Tasfir" was an anonymous stock market skeleton, without any substantial activity and cash, which overnight became a fairly successful cannabis company on the Israeli stock market. Globus has brought to the merger table four initial approvals (not licenses) for the cultivation, breeding, production, storage and distribution of cannabis and an empty agricultural area of 20 dunam in the Ashkelon area.
Two or three announcements to the Tel Aviv Stock Exchange of theoretical plans for the establishment of the Cannabis farm in Israel and abroad, together with a forecast of hundreds of millions of shekels of self-reported profits, boosted the share's value by tens of percentage points.
The company is owned Nissim Bracha, Owner of a number of income-producing real estate companies (including the Globus Center Ashkelon complex, which was recently sold to Summit Real Estate at 142) Nir Sussinsky, Owner and CEO of Adam Amit in the field of engineering servicesGuy Atia, Owner of the security company.
Amir Marketing - BOL Pharma
Last week, in the blitz, they joined the list of cannabis companies in the Israeli stock market. The first of the companies that announced a planned entry into the industry and was entitled to an increase in the value of its shares is Amir Marketing, the oldest and most well-known of all companies, The body that represents the farmers in Israel - and is therefore considered to be the most reliable.
Amir also managed to bring real value to the table And reported Announced that its expected entry into the field is part of an investment of 27 million in the old medical cannabis company "BOL Pharma" (formerly "Aspiration for Life"), which holds real cannabis assets, in a significant effort of about ten years of activity and knowledge and international connections.
In other words, Amir is currently the only company among the cannabis companies that is based on real business, and therefore an investment in it may be safer, although its entry into the field is not yet certain, according to its announcement to the TASE.
D - Pharm - UNV Medicine
At the same time, a fourth company joined the Israeli cannabis market: the stock exchange skeleton "D-Pharm", owned by the veteran investor Itzik Shrem, Which has already promoted the cannabis company that crashed in the past and announced last week a merger with UNV Medicine.
Although Cannabis has never raised cannabis, it has presented itself up to a few days ago on its Web site as someone who allegedly owns an active Cannabis medical farm (known as a "peer farm"), and even has allegedly GAP and GMP certification for cannabis cultivation Which of course is not true.
After the magazine contacted the company for checking the wrong information on the site, its managers announced that it was indeed a human error of the programmer who wrote the words in the present tense instead of in future tense and that the information would be corrected immediately. Although the information on the site has been partially corrected, the company's announcement to the Israeli stock exchange last week claims that it is "active in the manufacture and supply of medical cannabis" although not yet ostensibly.
Opectra - David Medical
The fifth company to join the stock exchange last Thursday and is also expected, according to its announcement to engage in cannabis, is the real estate company "Opectra", owned by the businessman Sioma Simon, Which informed the stock exchange that it intends to invest 650 in a thousand dollars and merge with a new Israeli cannabis company called "David Medical", owned by the entrepreneur Lior Wayne.
Wayne has published to investors and on the website of his other Cannabis company, Mawi, seemingly inaccurate data - for example, Rafael Meshulam He is the founder and scientific advisor of the company and Ms. Cheryl Schumann, A celebrity of American cannabis Also known as "Martha Stewart of Cannabis," is the founder and responsible for public relations and marketing of the company.
In this case, too, after Cannabis Magazine approached, the names and pictures were removed from the company's website, not before the magazine was sent abusive messages. After a few hours, the company's website was completely removed from the network.
Next Jen - Kitev Pharma (?)
A few hours later, just before the close of the trading week, NextGen Biomed, a company that does not own any cannabis assets until recently, has explored possibilities for entering gold mining and has signed gold mining plans in Ghana, Africa, for its entry into the cannabis market And thus became the sixth company to do so.
Chairman of NextGen, Isaac IsraelWas arrested about a year ago on suspicion of misleading reports of fraudulent, fraudulent, fraudulent, and breach of trust under aggravated circumstances after a misleading report on a successful drug trial. The public company in which he currently serves as CEO ("Kitev Pharma") has also contended with class action suits against her for misleading investors in the reports.
Direct Capital -?
In 10.4, another company, 7, announced to the Stock Exchange that it was entering the cannabis field. A statement from Direct Capital Investments Ltd. stated that "the company will act to locate new activity in the cannabis sector."
Direct Capital is owned Reuven Yagana, Who recently appointed CEO Asaf Yarkoni. The company has a lawyer Shay Zohar, Yaron Iluz andLiat Beedes.
Capital Holdings - Canvite
In 30.4, the public company, "Hank Holdings" (TASE: HANAH), which is now controlled by Apex Issues, Eliav Bar-David andAaron Samara(Cannbit), which holds temporary primary dealership numbers for the multiplicity and growth of medical cannabis, and intends to operate in the field of production, including the establishment of a plant and the marketing of cannabis products for medical use.
The director of the cannabit is Yaron Ratzon, former director of the Philatelic Service in Israel Post and former CEO of the Masa Acher media group. Yaron is hiding at this stage and refuses to be interviewed.
Pursuant to the memorandum of understanding, after signing a detailed agreement, all the rights in the cannabit will be transferred to the equity capital, including 74% of the growth and growth of cannabite, against the allocation of 87.5% of the issued and paid-up share capital of the Company to the shareholders of the Cannabit Group. In addition, cannabit will also operate in the field of production and marketing of cannabis products for medical use, as will be held in 100% of these activities.
"There are those who do 'round'
"I have no doubt that in some cases at least it is simply interested parties who want to do a round," says an experienced investor in the field. "You have to wait and see if you do not sell the shares quickly after a profit. What is problematic in investments in Israel is that they do not specify prices or details on how much it cost the company to produce exactly, or how much it intends to sell. In Canada, every detail is revealed, they explain how they reached these numbers. In Israel it does not exist. In announcements to the stock exchange, you do not find out whether the farm is in the north or south, do not reveal names, as if it's a state secret. "
"The Securities and Exchange Commission is not doing enough in this area," he added. "When companies added the term Lockhagen in the name of the share in the past, and it followed suit by hundreds of percent, the authority informed them that they would not do it anymore. Cannabis not only does not have it, but seems to ignore the subject. The IAA should ask these companies to specify exactly how much it costs them to produce grams. "
In view of the above data, investors looking for confidence in their investments are encouraged to carefully examine the background of each company, its managers and the real assets it holds prior to the acquisition of Cannabis shares. There is no recommendation in this article to invest or not to invest in one company or another, but only a recommendation to pay close attention to the small details and check on who put the shekels.
Response of the Israel Securities Authority to publication - Here.