(RTTNews) - Israeli medical cannabis company Univo Pharmaceuticals has signed a memorandum of understanding or OU with Canadian marijuana company Canopy Growth Corp. (CGC, WEED.TO) for the sale, production and marketing of medical cannabis.

Under the first phase of the agreement, Univo will import 470 kilograms of dry medical cannabis to Israel. Canopy Growth will provide medical cannabis to the company to exclusively market in Israel.

Univo will manufacture its products with Canopy Growth's raw materials and the final products will carry a joint brand and logo of the two companies. After production, the company will distribute medical cannabis products exclusively as final products in pharmacies In the Israeli market.

Under the second phase of the agreement, Canopy Growth will be able to utilize Univo's manufacturing and processing services in the city of Ashkelon, Israel, for export to European cannabis markets after medical cannabis exports from Israel are allowed.

Israel's Ministry of Health has ruled that exports of medical cannabis products from Israel could begin as soon as the cannabis shortage in the country is overcome.

Univo said it sees the relationship with Canopy Growth as a strategic move that will establish the company's position as a manufacturer and product supplier.

The agreement will also allow Univo to increase its market share of domestic products sold in Israel, regardless of the medical cannabis farm in Israel.

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