Former Israeli Representative to UN Hops on Cannabis Wagon

Dan Gillerman, who served as the Israeli representative to the United Nations between 2003 and 2008, has been appointed as the chairman of Tel Aviv-listed medical cannabis company Pharmocann Ltd., the company announced in a stock filing Sunday. Gillerman was also formerly the chairman of the Federation of Israeli Chambers of Commerce, and a board member at Israel’s Bank Leumi, First International Bank of Israel, and the Bank of Israel. He currently holds several roles, including chairman of the America–Israel Friendship League.

Founded in 2008, Pharmocann is one of Israel’s veteran medical cannabis growers and has a market capitalization of NIS 173.98 million (approximately $50 million). The company reported revenues of NIS 8.9 million (approximately $2.5 million) for the first six months of 2019, up from NIS 6.9 million (approximately $2 million) in the first six months of 2018, and a net loss of NIS 47.6 million (approximately $13.7 million) due to listing expenses, compared to a net income of NIS 4.5 million (approximately $1.3 million).

Phaemocann met with several leading executives while searching for a chairman, and connected with Gillerman through the company’s law firm, CEO and controlling shareholder Gil Hovesh said in an interview with Calcalist. Gillerman was chosen to lead the company’s development both in Israel and abroad, and the company believes his abilities will help especially on the international level, Hovesh said.

Gillerman told Calcalist that while medical cannabis is a new domain for him, he finds it both interesting and innovative. He chose to join the company after looking into its operations and available products, he said, adding that he has personal experience with people who benefit from medical cannabis.

Gillerman will receive a monthly salary of NIS 35,000 (approximately $10,000) in return for 40 monthly hours. He will also receive options for a 3% stake in the company with a vesting period of three years, to be realized at NIS 2.39 (approximately $0.69) per share. His options are currently worth approximately NIS 5.2 million (approximately $1.5 million).