VANCOUVER, British Columbia, Dec. 30, 2019 (GLOBE NEWSWIRE) — Isracann Biosciences Inc. (CSE: IPOT) (XFRA: A2PT0E) (OTC: ISCNF) (the “Company”) an Israel-based company focused on becoming a premier low cost, high quality cannabis producer for both domestic and European export sales is pleased to extend, on behalf of its executive leadership team, seasons greetings and a review of the Company’s 2019 activities and outlook for the New Year.
Mr. Darryl Jones, Isracann’s CEO comments, “It is with great pleasure that we present this review today. Our collective vision, planning and actions to-date have kept us extremely busy in the execution of our strategic plan, which is evident by the many milestones we have achieved in just one fiscal quarter since our public listing. In large part, this review is a validation of our efforts as we continue our push into the year ahead.”
FINANCING & PUBLIC LISTING
Isracann Biosciences Inc. at its inception had a healthy cash position which was quickly bolstered by subsequent financing efforts culminating in the successful raise of CAD$10.1 million which accelerated execution of the Company’s capital markets and business development strategies. The Company listed under the ticker symbol IPOT on the Canadian Securities Exchange on October 17, 2019, concurrently as A2PTOE on the Frankfurt market, and with a subsequent OTC listing as ISCNF along with DTC eligibility by The Depository Trust Company (“DTC”) for US-based investor participation.
As noted by CEO Jones in a release dated November 15th: “Our strategic aim is straightforward and leverages the national brand excellence of the Israeli agricultural industry combined with planned industrial scale production of low-cost premium quality cannabis targeting export into the massive European marketplace. It’s a uniquely scalable venture that combines numerous positive attributes including a team that knows how to execute.”
PHASE ONE FACILITY DESIGN & CONSTRUCTION SERVICES
The Company revealed the existence of a greenhouse facility design for cannabis cultivation and production in accordance with an existing technical specifications strategy, including adequate controls per regulatory standards and compliance with protective security, health, and safety requirements in accordance with Israeli regulations. The Company further announced agreements for the development of medical cannabis cultivation projects with regional stakeholders holding preliminary breeding and cultivation licenses issued by the Israeli Ministry of Health (the “Yakar”). The announcement advised that the regional stakeholder is required to renew these licenses each year and further bears the cost of electricity, property and related land taxes and are bound to work with Isracann to obtain the required licenses and to participate in the construction of the greenhouses.
ARCHITECTURAL & SECURITY CONSULTANTS
Isracann engaged key regional consultants, AgroPlan Ltd. and A.R. Factor Group, who respectively provide the Company architectural design and security planning as part of the Company’s integrated design/build strategy aimed at earning key Good Practice national certifications. Architecturally, AgroPlan completed a site survey to assess the topography, drainage, access to water, roads and electricity. Using this information AgroPlan has engineered a site specific/project specific architectural plan aimed at ensuring IMC-GAP, Israeli Medical Cannabis – Good Agricultural Practices code certification and IMC-GMP, Israeli Medical Cannabis – Good Manufacturing Practices code certification. Concurrently, A.R. Factor Group prepared a security design based upon the AgroPlan architectural designs and provided critical input to ensure the plans are suitable for and compliant with IMC-GSP, Israeli Medical Cannabis – Good Security Practices code. A.R. Factor was further contracted to write the requisite operational security plan for the entire site, which has been substantially completed.
EXPERT AGRONOMY CONSULTANTS
Isracann engaged LinC by Growing Smart Ltd. to deliver a formal project characterization roadmap for the successful development of its proposed 230,000 sq. ft. purpose-built production facility including requisite greenhouse environmental controls such as proposed equipment for dehumidification, air circulation, shading screens, active heating, cooling and carbon dioxide enrichment. The contractor specializes in the delivery of individually tailored project management and agronomic solutions to select cannabis sector projects and is currently managing 12 cannabis projects worldwide and was subsequently engaged to provide ongoing cannabis agronomic services for the development of Isracann’s current and future farm concepts into productive operations.
On December 4th it was announced that Isracann had received the phase 1 project profile report and advisement that the project characterization was fully underway including soil, water, and atmospheric sampling, and was moving ahead as scheduled. The final detailed report will impact virtually every aspect of the initial development phase from construction and the correct orientation of the facilities, to electrical, plumbing, irrigation, sewage and waste treatment, humidity, UV concentrations as well as plant nutrition, disease and pest control management. Production processes, available resources (e.g., experienced personnel and technical infrastructure) and organizational structure as well as imposed risks and outcomes are undergoing advanced study and review.
FACILITY PLAN SUBMISSION & APPROVALS
Isracann made critical submission of architectural, agronomic and security plans for the proposed greenhouse facilities in Nir, Israel. Plans were submitted to the Israeli Land Authority (Raeshoot Mekarka’ei Yisrael), the governing body overseeing the utilization of national land reserves. On November 27, Isracann received facility design and land use approvals from the Israeli Land Authority preparatory to construction permitting and awarding of building contracts for the proposed phase 1 build-out. Prior to commencement of construction, the Company will require the approval of the Israeli Settlement Commissioner and the Israeli Ministry of Health. These approvals are pending.
2020 CONSTRUCTION PLANS AT NIR, ISRAEL
The Company solicited and received detailed proposals from multiple cannabis specialty greenhouse construction firms within Israel (and abroad) that specialize in the design, construction and implementation in support of cannabis agricultural projects. Contract awards were predicated upon receipt of land use approvals and are now moving ahead.
Phase I involves the fabrication of two Isracann facilities totaling up to 115,000 square feet. Each of the greenhouses is based on a 57,500 square foot floorplan with an estimated annual production capacity of 5,750 kg of dried cannabis flower. The facilities will be built to comply with the IMC-GAP and IMC-GSP. The preliminary design was approved by the Israeli Ministry of Agriculture & Rural Development.
NEW LATE STAGE FARM OPPORTUNITY NEAR BE’ER SHEVA, ISRAEL
On December 16th Isracann entered an MOU for a joint venture with an additional farm property consisting of a late stage buildout of an +880,000 sq. ft. agricultural property with two recently assembled steel greenhouse structures (approx. 200,000 sq. ft.). A preliminary assessment by Isracann’s agronomic team projects full scale planting during the upcoming 2020 spring season with initial production projections indicating a first-year yield consistent with the Company’s Nir Israel farm projected output. The property encompasses a purpose-built cannabis cultivation facility in an agricultural centre proximal to several licensed producers (LP’s) west of Be’er Sheva, Israel (the “Be’er Sheva Farm”). The facility has all construction and land use permits in-place and an experienced and knowledgeable cultivation team which has local agronomic expertise with regional cannabis operations. Upon full build-out the facility will represent an approximate 100% increase in the Company’s current potential production capacity from its existing Nir, Israel farm. Under the joint venture, the Company will capitalize the buildout of the remaining construction in return for an economic interest in the project in compliance with Israeli laws. Terms of the joint venture will be released upon signing of a definitive agreement, which is subject to continued due diligence of the Be’er Sheva Farm by the Company.
“In the short period of 90 days, the team at Isracann Biosciences has implemented, executed and achieved an impressive list of achievements,” notes CEO Jones. “We started with an ambitious, industrial scale farm concept, and that plan has introduced us to a number of key regional players, partners and stakeholder who share our vision and goals. The support has been amazing, the advice extremely timely, and the collective wisdom we have gathered is already melding into a seasoned team dedicated to success. We’ve gone from a single property with a production horizon that remains fully on track for later this coming year, to a proposed second property with the potential for achieving an even earlier production scenario employing shared resources with limited capital and risk. Our internal resource allocation is already shifting towards post-production efforts including product management and distribution goals.”
“We are all justifiably optimistic as we head into the year ahead,” Jones continues, “I want to personally thank all of the shareholders who have participated to-date and hope to hear from those of you intrigued by the idea of buying shares in an Israeli cannabis venture operated by sector experienced entrepreneurs and capital markets professionals. We trust our efforts are of value to you all and we look forward to a happy and prosperous New Year.”
ON BEHALF OF THE BOARD OF DIRECTORS
Chief Executive Officer and President
About Isracann Biosciences Inc. (CSE: IPOT) (XFRA: A2PT0E) (OTC: ISCNF)
Isracann is an Israeli-based cannabis company focused on becoming a premier cannabis producer offering low-cost production targeting undersupplied, major European marketplaces. Based in Israel’s agricultural sector, Isracann will leverage its development within the most experienced country in the world with respect to cannabis research. The Company has secured agreements within Israel for medicinal marijuana cultivation. For more information visit: www.isracann.com.
The CSE does not accept responsibility for the adequacy or accuracy of this release.
All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. Forward looking statements include but are not limited to the Company’s execution of a definitive joint venture agreement for the Be’er Sheva Farm and the achievement of necessary permits to complete its proposed cultivation facilities. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ, materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the Canadian Securities Exchange, the British Columbia Securities Commission, the Ontario Securities Commission, and the Alberta Securities Commission.
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