Cannabotech seeks $6m. in Israel's first crowdfunded share insurance

This is a first for Israel, as no start-up has yet to implement such a model.

THERE IS one area where I would like to see Israel take a page from the American playbook: legalization of cannabis. (photo credit: PIXABAY)
THERE IS one area where I would like to see Israel take a page from the American playbook: legalization of cannabis.
(photo credit: PIXABAY)
Cannabotech, an Israeli firm focused on developing medical solutions based on cannabis and fungi mixtures, is planning on raising $6 million in Israel's first crowdfunded share insurance, Israeli financial daily Calcalist reported on Wednesday.
The announcement is part of Cannabotech's latest plan: to become a public, non-traded start-up, with its shares listed on the Tel Aviv Stock Exchange. This is a first for Israel, as no start-up has yet to implement such a model.
The insurance, which will be implemented in line with Israeli security laws, will be conducted digitally and directly to the public using the platform Fundit, Calcalist reported. Its shares will be offered at NIS 69, which comes out to about $20 per share, and will seek to raise around NIS 20 million.
Discounts will be given to investments totaling over NIS 100,000.
This won't be Cannabotech's first time on the platform, with the company having used Fundit to raise NIS  6.3 million at the end of August 2019/ At the time, this was the largest amount raised via crowdsourcing, Calcalist reported.
"Despite the uncertainty in the markets given the Covid-19 crisis, we are excited to announce our first public offering, which is carried out for the first time under a first-of-its-kind model in Israel," Cannabotech CEO Elchanan Shaked said, according to Calcalist.
"By using the new platform, we are allowing the Israeli public to invest in Israel's startup scene in a completely transparent manner. This offering method is vastly different from the traditional model, which is reserved for an exclusive club of institutional investors and funds. Under the current model, Cannabotech becomes a public company, not yet traded on TASE. The complete company information is available to the public in the prospectus in compliance with Israel's securities law. We believe our move is opening a new route for companies to become public and that many companies will follow our steps."