Shares in the company last traded at $0.85, more than four times the IPO value of $0.20 in May this year.
Adding further value to the IPO, for each two shares subscribed and issued, there was one $0.40 option given, which is now heavily in-the-money.
The valuation is expected to increase at the open of trade today following the company's wholly-owned subsidiary Canndeo Limited locking in off-shore supply of medicinal cannabis by entering into a partnership with BOL Pharma.
BOL Pharma is one of Israel’s leading medicinal cannabis producers with an extensive portfolio of products targeted for speciﬁc clinical applications.
Canndeo also recently signed an agreement with Endoca B.V. to distribute medicinal cannabis products into Australia.
Endoca is one of Europe’s most highly respected suppliers of GMP (Good Manufacturing Practice) certified medicinal cannabis, with sales exceeding €50 million per annum.
Importance of the BOL Pharma partnership
The Hydroponics Company has now executed on its strategy of a dual import/domestic supply of medicinal cannabis.
The company also remains on track to complete its domestic R&D and growing facility.
The next steps will include BOL Pharma initiating a clinical trial with Canndeo, expanding its multiple indications into Australia.
Details of the deal
BOL Pharma has agreed to supply all products required for an initial clinical trial with the long term view of providing products for additional clinical trials that are targeting to take place during 2018.
Tamir Gedo, chief executive ofﬁcer for BOL Pharma, commented:
"This agreement kicks off BOL Pharma’s entry into Australia’s emerging medical cannabis market and supports our goal of bringing clinically veriﬁed cannabinoid treatments to patients around the world.
"We are completely aligned with Canndeo’s objective of providing high quality, validated medical cannabis products to Australia and expect this agreement is just the beginning of long and productive collaboration."
Who is BOL Pharma
BOL Pharma has been pioneering the creation of the medical cannabis industry in Israel since 2007.
The company sources 99% pure pharma grade CBD, THC, and other cannabinoids from its own GAP certiﬁed cultivation facilities and GMP certiﬁed production facility.
Working in conjunction with Israel’s Ministry of Health and under governmental license, BOL serves thousands of patients, doctors, HMOs, and hospitals providing cannabis based medical products and cannabinoid active pharmaceutical ingredients (APIs).
BOL produces formulations for clinical research and white label services for the pharmaceuticals, supplements, and cosmetics industries.
According to a news statement on its website, BOL's new centre has a 35,000square-foot plant, an 8,000-square-foot storage room, 30,000 square feet of grow rooms and labs, and a million square feet of cultivation ﬁelds Tamir Gedo estimates that BOL will produce 80 tons – more than 175,000 pounds – per year.