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Be the first with the news that moves the market- Israel-based cannabis producer Isracann Biosciences (IPOT) is facing regulatory delays at its farming operations but remains confident it can stay on schedule
- The company is currently constructing cannabis facilities at the Hefer Valley-based Ein Hahoresh Farm in Israel
- However, due to COVID-19 related delays, the company can no longer take advantage of previous regulations, which would allow it to commence planting early
- Despite the regulatory change, the company remains confident it can navigate the new approvals and minimise the impact of the delay
- Isracann (IPOT) is up 1.96 per cent and is trading at C$0.26 per share
Israel-based cannabis producer Isracann Biosciences (IPOT) is facing regulatory delays at its farming operations but remains confident it can stay on schedule.
The company is currently constructing cannabis facilities at the Hefer Valley-based Ein Hahoresh Farm in Israel.
However, due to COVID-19 related delays, the company can no longer take advantage of previous regulations, which would allow it to commence planting early.
Before the new regulations came into effect Isracann was able to begin planting once the onsite greenhouse was fully approved. However, under the new regulations, all physical facilities must be inspected before planting can commence.
Despite the regulatory change, the company remains confident it can navigate the new approvals and minimise the impact of the delay.
In other troubling news, the company’s Nir, Yisreal farm has ran into the land use complexities that envelope the region and it is currently updating its plans, which it expects to submit for approval soon.
Isracann COO Matt Chatterton said that COVID-19 has definitely been felt by the company as well as worldwide.
“The good news is that our construction team at Ein Hahoresh is moving ahead and even though timing delays due to the pandemic meant we were unable to take advantage of the previous regulations which would have allowed us to commence planting sooner.
“With their help, we aim to meet the updated regulations and in fact with the proposed increase in capacity utilization due to a fully completed processing facility up and running, we stand an excellent chance of catching up and possibly surpassing our original expectations,” he said.
Isracann (IPOT) is up 1.96 per cent and is trading at C$0.26 per share at 12:08pm EDT.
