The Israeli cannabis producer that operates under the name Canndoc and whose president is former Israeli Prime Minister Ehud Barak, signed to be acquired by the company Subversive Real Estate Acquisitions REIT LP, the largest Cannabis SPAC in History. With this maneuver, its shares will debut on the Nasdaq giving a brilliant starting signal to the race in the American stock market.
The transaction of the company based in Tel Aviv, is valued at $300 million and is scheduled to become effective during the next month of April, as reported through a statement from Subversive.
As REIT founder, Michael Auerbach, pointed out in a telephone interview about the agreement, one of the next steps for the Israeli cannabis industry – after legalizing its therapeutic use, like Canada – is to strengthen its role in the financial market, according to its words, making it a “global player”.
Former Israeli Prime Minister and Michael Auerbach with rapper Shawn “Jay-Z” Carter as collaborator enter the US stock market
Canndoc’s profitable progress and the development of highly specialized research on cannabis-based drugs in the country, position the Isarelian company to take the lead and capitalize on the long-awaited legalization of the recreational use of cannabis in Israel, scheduled for this year or 2022, as Auerbach stated in the aforementioned interview.
Likewise, the absorption of InterCure LTD by the New York-based corporation, will allow access to a more liquid market than the Tel Aviv Stock Exchange and will offer US investors the opportunity to invest in a company dedicated to cannabis and legal at federal level, within its own jurisdiction.
There are still difficulties in incorporating these types of financial products in the US public markets, as they are still struggling to raise capital due to the federal ban on marijuana. For this reason, they currently participate as part of special purpose acquisition companies, or SPAC. Although this year, with the dominance of the Democrats in the Senate, progress in this regard is forecast and that the industry will consolidate with small players.
Indeed, Auerbach has brought a red carpet actor onto the scene, taking another step to make his cause visible, amplify his influence and establish in order to lead a market with favorable prospects. One of his recent signings is rapper Shawn “Jay-Z” Carter, appointed as a visionary director of another of Auerbach’s special-purpose corporations, Subversive Capital Acquisition Corp.
With this merger headed by the triad Barak/Auerbach/Jay-Z will they be able to defeat the lady of hearts and dominate the Israeli cannabis market as well as break the restrictions still in place on the other side of the Atlantic? We are looking forward to the response to these plays and which ones and how these promising chips move on the board.
