Israeli medical cannabis company Medivie Therapeutic (TASE: MEDI) notified the Tel Aviv Stock Exchange (TASE) this morning that the North Macedonia police have issued an arrest warrant for senior executives in the company including CEO and chairman Menachem Cohen, who controls 51% of Medivie. North Macedonia police allege that Medivie’s local operations have been involved in criminal activities.
The North Macedonian police claim that Medivie has been growing cannabis with higher levels of Tetrahydrocannabinol (THC), the psychoactive ingredient in the plant, than is legally permitted. Following the announcement Medivie’s share price was down more than 3% on the TASE. The company has a market cap of NIS 168 million.
Menachem Cohen told “Globes,” “This is a Kafkaesque story. Our legal advisors say that simple laboratory tests will prove this wrong and that our plants have only 0.037% of THC – less than half the minimal permitted amount. We also have all the documents that show that the value chain is managed according to Macedonian regulations including buying the seeds and the police presence at the location during the harvest.”
Published by Globes, Israel business news – www.globes-online.com – on April 26, 2020
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