The rapid decline of Israel's cannabis sector is not new. In early 2019, medical cannabis was considered the next thing, a hot trend that attracted a host of senior figures, including former prime ministers, politicians, military and police officers, as well as real estate developers, tech entrepreneurs, and even sports and movie celebrities.
Everyone wanted a piece of the action in a market that excited stock exchange investors and promised rapid growth based mainly on the hopes of exporting high-quality cannabis products cultivated in Israel and overseas.
But nearly four years later, the picture in the industry is bleak. Cannabis stocks have crashed on the Tel Aviv Stock Exchange following disappointing financial results and the flight of the famous figures who had backed the sector. Cannabis companies are now abandoning the industry in favor of other activities, usually in the field of real estate.
The latest and perhaps most surprising company to join this trend is Panaxia, which announced on Monday that it was commencing financial activities instead of the cannabis sector.
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