Canonic Ltd. and Tikun Olam-Cannbit Pharmaceuticals Ltd. announced that they have entered into agreements for the production and distribution in Israel of Canonic's medical cannabis products. Canonic's first product is expected to be launched in Israel next year. According to the production agreement, Tikun Olam Production (Israel) will produce Canonic's medical cannabis products at its factory complying with IMC-GMP standards using Canonic's raw materials, under the Canonic brand. The agreement is not exclusive for either party and consideration paid will be based on the scope of production and related services provided. The agreement is for a period of two years or the production of products from 700kg of raw material, whatever is the earliest. According to the distribution agreement, Tikun Olam Supply and Distribution (Israel) will distribute in Israel Canonic's medical cannabis products, through its distribution channels, on a consignment basis to its or other licensed pharmacies, under the Canonic brand. The initial term of the agreement is 18 months. Consideration to be paid by Canonic will be based on a percentage of sales and for related services.