Isracann Closes JV Cannabis Farm Production Agreement With 3-Year Offtake in Israel

Partnership puts timeline in place for earned revenues

VANCOUVER, British Columbia, April 08, 2020 (GLOBE NEWSWIRE) -- Isracann Biosciences Inc. (CSE: IPOT) (XFRA: A2PT0E) (OTC: ISCNF) (the “Company” or “Isracann”) 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 announce that further to its news release on March 24, 2020, it has acquired a 50% interest in a joint venture called Cannation Ltd. for a phased partnership of two near-term farm operations located in the Hefer Valley region of Israel.

Cannation has an offtake agreement with Focus Medical Herbs Ltd. ("Focus Medical"), a licensed medical cannabis producer in Israel, for a three-year definitive supply agreement with Cannation for approximately 2,600kg of medical cannabis per year, for a total of up to 7,800kg of medical cannabis over three years. Focus Medical has an exclusive commercial agreement with IM Cannabis Corp. (CSE: IMCC) to distribute its production under the IMC brand.

Isracann’s joint venture partner in Cannation is Way of Life Medical Cannabis Company. Way of Life is a regionally respected and active cannabis grower. The principals of Way of Life enjoy a family history of building and operating greenhouse operations across the middle east and proven sector ability with over 2-years experience as owners of a stable and productive cannabis farm servicing the domestic Israeli market. Their technical proficiency includes an active tissue culture program and most importantly, has resulted in securing critical plant genetics which will be available to the JV operation.

The Cannation farm properties are Israel Medical Cannabis (IMC) compliant and designed to EU-GMP certification standards. Cannation anticipates permits to begin selling its first crop by the end of Q2. Full scale production targets a combined total projected yield of 12,600kg of dried cannabis flow per year with facilities housing over 160,000 sq. ft. of greenhouse canopy. The Cannation farms are located on a 2,000,000 sq. ft. parcel of private land, which provides the potential for expanded production and processing operations. Private lands are rarely available in Israel and are free from the requirement of land commission regulatory approval, thereby minimizing licensing delays.