Israeli Parliament Approves Law re Medical Cannabis
The Israeli Parliament approved on December 25, 2018, an amendment to the Dangerous Drugs Ordinance – 1973, which, amongst others, regulates medical cannabis (the “Amendment“).
The Amendment:
• Sets the division of authorities between the Israeli Ministry of Health (“MOH“) and Israeli Police;
• Provides the Israeli Police with control and enforcement authorities, relating to the handling of medical cannabis;
• Sets the sanctions for breach of the permits granted by the MOH allowing the engagement in medical cannabis activities.
It should be noted that the Amendment resolves some authority questions with respect to the handling and export of medical cannabis. Nevertheless the export of medical cannabis is still subject to the Israeli government approval, which to date has not been granted.
The Israeli Securities Authority Issues Investment Highlights regarding Medical Cannabis Companies
On December 26, 2018 the Israeli Securities Authority (the “ISA“) issued investment highlights, addressed to the public considering investments in medical cannabis companies, due to these companies’ special characteristics and risks.
These highlights include:
• Investors should examine and understand the nature of the permit received by the company. Only a limited number of companies were granted final permits. Other companies received only a preliminary confirmation of compliance with conditions precedent published by the MOH.
• Many medical cannabis companies report various collaborations and arrangements at early stages. Investors are called to differentiate between non-binding arrangements (such as MOUs, LOIs etc.), and binding agreements, that are signed by medical cannabis companies.
• Investors should note that permits granted by the MOH may not be assigned to affiliates or third parties without specific MOH approval.
• The export of medical cannabis has not been approved to date.
We would like to take this opportunity to wish all our clients and colleagues happy holidays!
For additional information please contact your GKH attorney or one of the following Adv. Hili Cohen, partner and head of life sciences department (Hili@gkh-law.com) or Adv. Tami Fishman, partner (Tamif@gkh-law.com)
Gross, Kleinhendler, Hodak, Halevy, Greenberg, Shenhav & Co. (GKH), is one of the leading law firms in Israel, with over 170 attorneys. GKH specializes, both in Israel and abroad, in various fields of law including Mergers and Acquisitions, Capital Markets, Technology, healthcare and life science, Banking, Project Finance, Litigation, Antitrust, Energy and Infrastructure, Environmental Law, Intellectual Property, Labor Law and Tax.
This alert is prepared as an informational service to clients and colleagues of Gross, Kleinhendler, Hodak, Halevy, Greenberg, Shenhav & Co. (GKH) and the information presented is not intended to provide legal opinions or advice. Readers should seek professional legal advice regarding the matters about which they are particularly concerned.
