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Tefen – New Licensed Cannabis Producer in Israel Concludes $23 Million Local Sales Deal

Countries Around the World Seek to Import Israeli Cannabis Products but Cannot Due to Israel Government Bureaucracy Preventing Approval: “The Israeli Export Window is Closing”


Tel Aviv, Israel July 9, 2018…Tefen, a new Israeli licensed medical-grade cannabis producer with the expertise to grow consistent, high quality, and varied strains has recently concluded two deals valued at approximately $23 million to supply 14 tons of medical-grade cannabis to a large Israeli processor and distributor over the next three years.  


The growing facility will be on a 20 dunam (4.94 acres) farm in central Israel which can produce up to 20 tons of cannabis per year.


Tefen, a publicly traded company (TASE:TEFN), is in the process of constructing an automated cultivation facility in central Israel and will be ready to also sell internationally if the Israeli government approves the export of cannabis.


The company’s management, development team and advisors have proven professional knowledge in the international cannabis and drug development industries, including cannabis growing facilities in South America, Canada and Israel.


Based on the U.S. market for medicinal cannabis, it is estimated that 1.25% - 2% of the population will eventually consume medicinal cannabis.  These percentages are expected to be similar in all international markets that legalize medicinal cannabis.


According to the market research firm Arcview and its research partner BDS Analytics, in 2017 the North American cannabis market alone was valued at approximately $9.2B. With Additional states in the U.S. legalizing medicinal and recreational cannabis, and other countries in the world, such as Germany with a population of 84 million, following suit, the growth of the international cannabis market is expected to rise exponentially to $57B by 2027.  However, at this time there is a dire lack of medical grade cannabis in numerous countries that have legalized, including Germany.


In Israel, the current forecast is that the Israeli cannabis market will grow from the current 30,000 patients to 120,000–170,000 patients, reflecting local consumption of 40–60 tons of medicinal cannabis annually.


According to Yona Levy, CEO of Alvit LCS Pharma and a director of Tefen, “Israel is unfortunately losing its first mover advantage.  While Israel has the world’s best brand and reputation for scientific innovation and the quality and safety of its cannabis, the fact that it cannot export is a negative for Israel on a number of levels. Current Israeli cannabis businesses built for the international market will close or move their operations and technologies overseas, patients around the world will have reduced access to superior products, Israeli companies will earn less profit and hire fewer employees, and the Israeli government itself will lose hundreds of millions of dollars in lost tax revenue. The window is rapidly closing and countries like Canada will reap huge rewards.”


“The world market is booming, and Tefen is not going to be left out.  If we can’t supply from Israel, we will grow, produce and participate in the international market from somewhere else.  In fact, we are already in discussions with other countries to expand our own operations internationally. Ultimately, our business will profit and succeed, but Israel will unfortunately lose.”

About Tefen


Tefen (TASE:TEFN) is a publicly traded Israeli cannabis licensed producer that specializes in the cultivation of standardized medical cannabis.  The first growing code is for an area of 20 Dunam (4.94 acres) which can produce up to 20 tons of cannabis per year. Tefen will also advance other business activities under the public entity, including the implementation of technology in the entire growth chain, and the sale and export of medicinal cannabis to groups outside of Israel if exports are approved.


About Alvit


Alvit LCS Pharma is an Israeli cannabis drug delivery company established to produce safer, more convenient and more effective medicinal cannabis products for patients and their treating physicians through superior proprietary cultivation, extraction and formulation technologies.