Medical cannabis company UNIVO Pharmaceuticals (TASE: UNVO) said Sunday it has entered into an exclusive agreement with Canopy Growth Corp (NYSE: CGC) to import, manufacture, advertise and export GMP medical cannabis products in Israel.

The deal marks Canopy's entrance into the Israel market.

The agreement calls for Univo to import 470kg of dry medical cannabis grown by Canopy at first, according to the press release.

Univo said it will manufacture its GMP-standard products using Canopy’s raw materials, which will be branded under Univo’s logo and distributed in Israeli pharmacies.

During the second stage of the agreement, Canopy will obtain the right to sign an agreement with Univo as manufacturer and disitrbutor of medical cannabis products in the European Union.

“The agreement is proof that there is an advantage in building a technological plant with a large production capacity and with future technological capability for producing products of high quality and to international standards,” Univo CEO Golan Bitton said in a statement.

“The agreement will enable us to grow both our market share in Israel, without being dependent on the farm and on local supply, and to continue selling and expanding our product portfolio of medical cannabis products of the highest quality, while laying the foundation for Canopy to produce in the international market.”

Canopy shares were down 1.14% at $18.56 at the time of publication Monday.

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Photo courtesy of Univo.