JERUSALEM (Reuters) - Israel's Together Pharma said on Tuesday it will set up a new company with Premier Dead Sea to sell cosmetics based on cannabis and Dead Sea minerals.
The firm said the products would be based on CBD, or Cannabidiol -- a constitute of the cannabis plant that is used in some health products. Together said it believes that the CBD market is worth hundreds of millions of dollars.
"CBD has a variety of properties that are beneficial to various diseases because of it anti-inflammatory, anti-bacterial, anti-oxidant and anti-aging properties, and its market is expected to grow 700 percent by the year 2020," it said.
The joint company will be set up in Europe, with Together holding 51 percent and Premier 49 percent. Together will provide up to 2 million euros ($2.3 million)in loan for building the venture's factory.
Investors have piled into cannabis stocks as many countries consider legalizing marijuana at least for medicinal purposes.
Shares of Together, which has a market value of nearly 400 million shekels ($110 million), were down 6.8 percent on Tuesday in Tel Aviv but have soared nearly 450 percent so far in 2018.
(Reporting by Maayan Lubell; Editing by Steven Scheer)
