Israeli-based Univo Pharmaceuticals announced this week that it had signed a memorandum of understanding with cannabis producer Canopy Growth (CGC -0.66%) that would see the two companies work together on the sale, production, and marketing of medical marijuana in Israel. 

Univo will initially import 470 kilograms of dry cannabis from the Canadian producer, which it will also use to manufacture cannabis products that will be sold under a joint brand and logo.

At a later stage in the agreement, and once it's legal to do so, Canopy Growth will use Univo's location in Ashkelon, Israel, to manufacture and process cannabis products for export to Europe.

In January, Israeli producer Canndoc imported the country's first-ever commercial medical cannabis shipment from a production plant in Portgual owned by another Canadian-based producer, Tilray (TLRY)

View of Europe from the sky at night.

Image source: Getty Images.

Canopy Growth remains one of the industry's top pot stocks

When Canopy Growth released its quarterly results on Feb. 14, it proved to investors that it was still among the best in the industry. With sales growth of 49% from the prior-year quarter and 62% improvement from the prior period, the company thoroughly beat analysts' consensus expectations. 

That was a stark contrast to one of its main rivals, Aurora Cannabis (ACB -2.96%), which disappointed its investors with falling sales in its most recent results, and said that it expects "modest to no growth" in its next quarter. 

Both cannabis companies have undergone changes in leadership over the past year, and with Canopy Growth now under the direction of Constellation Brands' (STZ -0.04%) former CFO David Klein, the company is committed to strengthening its bottom line. It has reported losses in four consecutive quarters.