Medical cannabis company Tikun Olam is reportedly looking to sell their operations in Israel following a Health Ministry decision to revoke the firm’s license unless founder and controlling shareholder Yitzhak (Tzahi) Cohen cut back on his holdings, the Times of Israel reports. Tikun was the first company to receive a medical cannabis license in Israel and is its largest industry operator.
The company’s operations include a 0.74-acre cannabis farm; a Nazareth Illit factory that is under construction; offices and a clinic in Tel Aviv; and an 8,000-person patient list – altogether worth about $100 million.
Cohen has a 70 percent stake in the company and the Health Ministry had ordered him to whittle that figure down to about 5 percent or lose his license. Law enforcement had also recommended to the ministry that the company’s cultivation license not be renewed, and Cohen end his activities in the space. Last year, the Health Ministry ordered the company to temporarily stop work over concerns that its drying process was not in line with regulations.
Aharon Lutzky, president of Tikun Olam said the company would “act in accordance with the court’s directive.”
“… Our goal is to ensure that our patients are able to continue receiving the treatment they are waiting for when the company returns to full activity in Israel – regardless of its ownership structure.” – Lutzky, to the Calcalist, via the Times
The company also has operations in the U.S., Canada, Australia, and Greece. Those divisions are not up for sale.