The Kanabis index consists of nine companies engaged in research into the use of cannabis for medical purposes. The Tel Aviv Stock Exchange has introduced an index to create a benchmark for, for example, funds that would like to offer their clients an investment in this sector with great growth potential.
The cannabis index was launched on the Tel Aviv Stock Exchange on Monday, December 28, and is made up of shares in nine companies exploring the use of cannabis in medicine. However, they are also engaged in its cultivation or marketing of medical cannabis products.
Israel is a leader in marijuana research. This year, the government there decided that medical cannabis could be exported from the country abroad. It is a business from which Israeli companies promise revenues of hundreds of millions of dollars a year.
So far, the index has a relatively low market capitalization of 1.7 billion shekels, or just under $530 million. The Tel Aviv Stock Exchange explained the launch of the index, among other things, with the intention of creating a benchmark for the cannabis business. Investment funds are interested in offering their clients investments in this growing sector, but have so far had nothing to estimate the direction in which the whole business is going.