Canonic, a company focused on the development of medical cannabis products and a wholly owned subsidiary of Evogene, has signed its first commercial agreement with a licensed medical cannabis cultivator, Telcann, for the provision of plant growth services in Israel to Canonic. With this agreement, Canonic has completed the establishment of the major component required for the production infrastructure of its medical cannabis products, MetaYield and Precise in Israel. Canonic is expected to proceed with the execution of its commercialization (go-to-market) plan of medical cannabis products in Israel under its own label. Canonic's first product, from its MetaYield program, is aimed to be commercialized commencing in 2022.
Canonic aims to market its medical cannabis products under its own label to pharmacies and distributors in Israel. Canonic intends to establish a value chain from genomics to the end product, with certain parts of the value chain outsourced to sub-contractors such as cultivation, production and distribution. Canonic aims to focus on aspects in which it has a competitive advantage, such as the development of cannabis varieties seeds and seedlings.
Telcann is a leading medical cannabis cultivator in Israel, licensed by the Israel medical cannabis agency (IMCA) and has 130,000 sq. ft. of greenhouses including the required post- harvest capabilities. Canonic entered this agreement with Telcann, after evaluating its high agronomic standards and initiating a pilot growth trial of its seedlings at Telcann's facility. Telcann provides services to additional cannabis companies in Israel.
Under the agreement, Canonic expects to deliver a first batch of its medical cannabis seedlings to Telcann during 2021, originating from Canonic's propagation farm, which recently received IMC-GAP approval from the IMCA. These seedlings are expected to be grown to maturity, harvested and processed by Telcann and later transferred to a third-party GMP production facility for further processing and preparation for marketing.
In parallel to this, Canonic is advancing development activities to achieve a first commercial cannabis variety, under its MetaYield program. In addition, in order to complete the commercial framework for its activities, in 2021 Canonic aims to enter definitive production and distribution agreements to support the commercialization of its first product in 2022.
Dr. Arnon Heyman, CEO of Canonic stated: "We are pleased to partner with Telcann, a leading cannabis cultivator as we move forward in bringing highly precise and stable medical-cannabis products to the market. With this agreement Canonic has completed a fundamental element of its production infrastructure towards becoming a commercial medical cannabis company."
Mr. Ofer Haviv, Chairman of Canonic and CEO & President of Evogene stated: "I am pleased to see that within a very short time, Canonic has created an impressive operation, which we expect will come into full fruition in 2022 with first sales of medical cannabis in Israel. I am confident that access to Evogene's GeneRator AI engine will be a significant contributing factor in the success of Canonic to bring to market genetically unique cannabis products."
For more information:
Canonic
www.canonicbio.com
Evogene
www.evogene.com