Cannasoft Enterprises (NASDAQ:BCAN) announced on Tuesday the halt of their medical cannabis growing facility's construction to pivot towards the Femtech sector.
Cannasoft, an Israeli cannabis company, carried out successful fundraising last month but has now decided to redirect the funds to its new business strategy: female tech wellness. Attempts to redirect its business plans are driven by the negative shifts in the global medical cannabis market. Also, the ongoing war involving Israel, and the facility's location near the Gaza border, raised security concerns about the construction plans. The board plans to review this decision in July 2024.
Looking Forward: Femtech And Cannabis
Cannasoft specializes in management software for the cannabis industry with its CRM proprietary software. Apart from software development, the company is already a player in manufacturing with their EZ-G Device that uses CBD Oil. The EZ-G is a sex toy aiming for mass production in China in early 2024.
The announced strategic shift seeks to expand the company's presence in a sector characterized by rapid growth over the last decades. The femtech landscape appears interesting as the company
circumnavigates the negative economic cycle.
"Femtech includes reproductive health, pregnancy, lactation care, pelvic and uterine care, and more." the company stated in a press release. Women have a significant impact on the healthcare industry, the company noted. Women constitute fifty percent of healthcare consumers worldwide and some 90% of women are the primary healthcare decision-makers in their homes. Additionally, women are 75% more likely than males to utilize digital healthcare tools.