There was little evidence of plain old bud in the main showroom at the Tel Aviv CannaTech conference on April 1-2. That’s because those who were promoting cannabis byproducts were on the summit floor and those who were taking a smoke break were on the roof talking shop and sipping cocktails.
The conference, founded in Israel in 2015, hosted speakers and educational panel discussions for the two days including some celebrities in the industry like Former Israeli Prime Minister, Ehud Barak who spoke on the importance of Medical Cannabis in the global political field and Aurora Cannabis CCO Cam Battley, who spoke about respecting patients’ wishes. (To read the full interview with Battley, click here)
More than 40 companies participated in the event and represented more than 40 countries on the expo floor. If you thought that cannabis could only be smoked, all you would have to do is walk five feet into the lobby to see the variety of products.
Members of the Research and Development team at a company called Panaxia tells us it is planning to become public in the future. The team provides cannabis-based medicines that use THC and CBD as main ingredients. The products are made to be administered orally, sublingually, vaginally and rectally and have the potential to remedy a variety of diseases, including pain relief for those suffering from cancer and epilepsy.
Spain-based cannabis company, BBG Projects specializes in selling high quality seeds – mostly B2B. The company has existed for 17 years, taking existing genetics and making seeds out of them. Junior export manager, Lukas Roeth explained the unique selling point for his company is that while most breeders produce high quality seeds, they are not able to derive any kind of genetics from them or multiply them.
“You have one strain and 1 seed, which is good, while 5 others are bad. Out of 5 plants, 1 will be good. We produce these seeds that allow you to produce more. Out of 1,000 seeds, you’ll have 999 plants that grow properly,” Roeth explained. “[Recently] Production is up, revenue is up, and we’re selling to licensed producers more in markets that [cannabis is] legal in now.”
Companies like Abacus Health (CSE:ABCS) touted their CBD pain relief creams and offered up free menthol-smelling samples to guests. The company just IPO’d in Canada and has been on the Toronto Stock Exchange for just over a few months.
CannaTech’s event organizer and Founder/CEO of iCan (the company responsible for the event), Saul Kaye said the event had a fantastic turnout and offered up his opinion on the cannabis market. His big focus is getting cannabis legalized in Israel and around the rest of the globe.
“I’ve been pushing for four years for patient access and we’ve achieved that. We get patients more medicine available through pharmacies, but the government is still failing in recognizing 2 million consumers who are illegal consumers right now and that’s not on. I predict within 24 months we have a legal framework in Israel for cannabis consumption,” the cannabis guru said.
He also provided his insights on the market: “Boom baby. Invest. Invest but invest wisely. De-risk your investments. Put them into ETFs. Something with a balance between Israel and Canada possibly. But the U.S. is moving toward legalization within 12 – 24 months as well and when that happens, the market is really going to open up and then you’ve got to start being more careful.”
When asked which companies Kaye recommends he pointed to a few underdog cannabis stocks, which he calls the “second tier.” He first noted a cannabis licensing company called Tefen (TLV:TEFN) in which he is on the board. Other cannabis company recommendations include Canndoc/InterCure (TLV:INCR) and Acreage Holdings (CSE:ACRG.U). Kaye also recommends a few big guns like Canopy (CGC), Aurora (ACB), and Aphria (APHA).
“The next guys who are coming in line. They’re the ones poised if they’ve got enough of a cash balance to balance whatever is going to come to the market.[…] The largest bankroll will be able to win that one the best, which is why if you’re looking for a really safe bet, the big companies are still safe.”
To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.
Disclosure: Smarter Analyst has no business or investing relationship with any company mentioned in this article.