Together Pharma and Dead Sea Premier Cosmetics Laboratories are planning to establish a new cannabis cosmetics company.

Reuters reported that the company made this decision due to the rising potential of cannabidiol (CBD) infused products worldwide.

The new firm plans to manufacture products featuring CBD (a constitute of the cannabis plant that is used in some health products) and minerals from the Dead Sea.

The company will be established as a joint venture (JV), which will be 51% owned by Together Pharma and 49% owned by Dead Sea Premier. The JV will be listed in Europe.

“CBD has a variety of properties that are beneficial to various diseases because of its anti-inflammatory, anti-bacterial, anti-oxidant and anti-ageing properties.”

Together Pharma was quoted by Reuters as saying: “CBD has a variety of properties that are beneficial to various diseases because of its anti-inflammatory, anti-bacterial, anti-oxidant and anti-ageing properties. The market is expected to grow 700% by the year 2020.”

The cannabis market is growing steadily as many countries consider legalising marijuana for medicinal purposes.

Together Pharma is an Israli-based medicinal cannabis products developer and producer that has a market value of around $110 million. The company will provide a $2.3m loan to establish a manufacturing facility for the newly established JV.

Dead Sea Premier Cosmetics Laboratories manufacturers skincare products using ingredients sourced from the Dead Sea. In the new JV, Premier Dead Sea Cosmetics Laboratories will supply the creams, while Together Pharma will provide the CBD compound.

It is said that the deal will be finalised once the companies have asserted that CBD can be successfully incorporated into Premier’s cosmetic products. The firms plan to initially use subcontractors to develop the products until a processing and packaging plant can be established.