On December 26, 2018 the Israeli Securities Authority (the "ISA") issued investment highlights, addressed to the public considering investments in medical cannabis companies, due to these companies' special characteristics and risks.

These highlights include:

  • Investors should examine and understand the nature of the permit received by the company. Only a limited number of companies were granted final permits. Other companies received only a preliminary confirmation of compliance with conditions precedent published by the MOH.
  • Many medical cannabis companies report various collaborations and arrangements at early stages. Investors are called to differentiate between non-binding arrangements (such as MOUs, LOIs etc.), and binding agreements, that are signed by medical cannabis companies.
  • Investors should note that permits granted by the MOH may not be assigned to affiliates or third parties without specific MOH approval.
  • The export of medical cannabis has not been approved to date.

Originally published December 2018

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