Two Medical Marijuana Companies on Way to Tel Aviv Stock Exchange Listing
Two medical marijuana companies are due to start trading on the Tel Aviv Stock Exchange by merging with existing public companies rather than in the wake of an initial public offering.
HErodium Investments said Tuesday it had signed a memorandum of understanding under which the medical cannabis operations of Panaxia Pharmaceutical Industries will be merged into the company. The all-share deal would leave Panaxia shareholders with 85% of the merged company. In a separate announcement, the TASE-traded shell company Whitesmoke Software said it was buying Better, a grower and supplier of medical marijuana, by allocating 80% of its shares to Better shareholders. Panaxia is unusual among TASE-traded marijuana companies in that it doesn’t grow the plant but makes oils and chewable tablets containing cannabis. Better is one of eight authorized suppliers in Israel of medical marijuana, with a 10,000-square-meter farm serving 5,000 patients. Herodium shares powered higher by 135%% to end at 2.70 shekels (72 cents). Whitesmoke rose 33% to 36 agorot. (Guy Erez)