Seach Medical Group (in Hebrew שיח מדיקל, Si'ach) is one of the few Israeli medical cannabis companies that came through the 2022–2026 shake-out in better shape than it went in. It is listed on the Tel Aviv Stock Exchange as SEMG and is still controlled by the family that founded it. It grows its own flower, packs it in its own factory and sells part of it through its own cannabis pharmacies. In the first half of 2026 its revenue slipped slightly, but its net profit more than doubled to about NIS 9.7 million. It was also the first Israeli cannabis company to pay a dividend. This profile covers what the company is, how its model differs from its rivals' and what its latest filings show.
This profile is general information, not investment advice. Figures come from company results as reported in the Israeli financial press; check current filings before relying on any detail.
What Seach Medical is
Seach is a family business. The Sharid family converted greenhouses that had grown ornamental flowers into cannabis cultivation. The company says it has supplied medical cannabis since 2008, which makes it one of the oldest operators in the Israeli programme (Bizportal, 29 May 2026, Hebrew). Chief executive Yogev Sharid is a member of the founding family, and the family holds about 64% of the shares (Bizportal, 24 March 2025, Hebrew).
Seach did not hold an IPO. Like most Israeli cannabis companies on the Tel Aviv exchange, it reached the market in 2019 by merging into a listed shell company, Beyond Time Holdings. Bizportal has noted that most of the sector came to the exchange this way (Bizportal, 6 January 2026, Hebrew).
The company describes its assets as (Bizportal, 29 May 2026, Hebrew):
- Growing facilities of about 16 dunams (roughly 1.6 hectares).
- A factory that produces and packs medical cannabis products.
- A chain of pharmacies licensed to dispense medical cannabis.
- Hundreds of genetic lines kept for breeding and development.
Seach also buys flower from other Israeli farmers and both imports and exports (Bizportal, 27 August 2026, Hebrew). For how the licensed growing base has shrunk around it, see our guide to Israel's licensed cultivators.
The model: own the chain, from farm to pharmacy
Seach's strategy is to control each stage of the chain itself. Two moves in 2022–2023 set this up, and both were expensive at first.
Pharmacies. In early 2022 Seach bought 51% of the Shefa pharmacy in Tel Aviv. The pharmacy did not perform as hoped, so in July 2023 the company bought out its partners and replaced the management. That year it wrote down about NIS 5.8 million of goodwill on the deal (Funder, 28 March 2024, Hebrew). The retail side still grew. In 2023 pharmacy (retail) revenue rose about 39% to NIS 62.8 million, against NIS 87.1 million from wholesale. For how cannabis dispensing works in Israel, see our guide to medical cannabis pharmacies.
The factory. In May 2023 Seach bought a production plant for about NIS 2.5 million. Funder said about NIS 15 million had been invested in the plant before the sale, and called the price opportunistic. Seach then spent about another NIS 2.5 million preparing it for a production licence. Production began gradually in November 2023 (Funder, 28 March 2024, Hebrew). Owning the plant meant Seach no longer had to rely on contract packers. That turned out to matter when Bazelet, the largest of those packers, failed (see below).
The CEO puts the result plainly. "Most of our production today takes place in our own factory," he said in August 2026, adding that this adds meaningfully to gross profit (Bizportal, 27 August 2026, Hebrew).
From losses to a dividend, 2022–2025
The investments first hurt the results. In 2023 revenue grew about 12%, to NIS 150.3 million, but gross margin fell from 29.6% to 25.8%. The net loss attributable to shareholders grew from about NIS 1.9 million to NIS 10.5 million. The CEO called the year challenging both for Israel and for the cannabis market (Funder, 28 March 2024, Hebrew).
2024 was the turnaround. Fourth-quarter revenue rose about 10% to NIS 44.2 million, gross margin more than doubled to 30.7%, and the quarter's net profit was NIS 6.9 million, against a loss of NIS 12.4 million a year earlier. The company called 2024 a record year for revenue. It declared a dividend of about NIS 4 million, which Bizportal reported as the first time an Israeli cannabis company had shared profits with its shareholders (Bizportal, 24 March 2025, Hebrew).
2025 was flatter. Quarterly revenue held at about NIS 38–41 million. Full-year revenue was about NIS 157 million, down from the 2024 record. The first three quarters were profitable, but the fourth quarter ended in a net loss of about NIS 7–8 million, which left the year close to break-even (Bizportal quarterly results table, Hebrew).
The numbers: the first half of 2026
The figures below are in NIS millions and come from the company's first- and second-quarter results (Bizportal, 29 May 2026; Bizportal, 25 August 2026, both Hebrew):
| H1 2025 | H1 2026 | |
|---|---|---|
| Revenue | 78.1 | 75.3 |
| Gross margin | 31.1% | 37.8% |
| Operating profit | 6.2 | 9.6 |
| Net profit (to shareholders) | 4.3 | 9.7 |
| Operating cash flow | 14.7 | 15.0 |
Three points stand out.
- Profit grew while sales fell. Revenue fell about 4%, but gross margin rose by nearly seven percentage points, reaching 40% in the second quarter. The company credits its own factory and a product mix weighted towards premium lines.
- Part of the profit is one-off. First-quarter profit of NIS 5.6 million included a one-time tax effect of about NIS 2.3 million. Second-quarter profit, NIS 4.2 million, had no such item.
- The balance sheet is conservative. At the end of June 2026 Seach had about NIS 33 million in cash and money-market funds, plus about NIS 24 million in unused credit lines. Shareholders' equity was about NIS 93 million. It paid about NIS 6 million in dividends during the half.
The market capitalisation was about NIS 91 million in October 2026 (Bizportal quote page, Hebrew). That is less than Seach's equity and well below one year's sales.
Exposure to Bazelet
Seach is also a creditor of Bazelet, the large processing and packing plant in Or Akiva. Bazelet petitioned for a stay of proceedings in December 2025. Seach told the stock exchange that Bazelet owed it about NIS 4.8 million, mostly backed by a personal guarantee from Bazelet's owners. Its shares fell 10.4% that week (Calcalist, 28 December 2025, Hebrew). The sum is small next to InterCure's claim. The full story, including what creditors agreed in 2026, is in our guide to the Bazelet insolvency.
Strategy: "sell less, but profitably"
Seach's public position is that it would rather lose volume than match competitors' prices. In August 2026 Sharid said many companies sell at prices Seach is unwilling to meet. The company keeps only products that clear its profit threshold, and it relies instead on keeping its products available over time and on pharmacist advice. "We are not chasing today's cash flow, we are chasing a successful business built for the long term," he said (Bizportal, 27 August 2026, Hebrew). In May 2026 he said the company was examining mergers and acquisitions in fields adjacent to its core business. No deal had been announced at the time of writing (Bizportal, 29 May 2026, Hebrew).
The demand outlook helps. Citing the Health Ministry's medical cannabis unit (Yakar), Bizportal reported a record of about 141,100 licensed patients in April 2026 (Bizportal, 29 May 2026, Hebrew). By August the CEO put the figure at about 145,000. See our guide to Israel's cannabis patient numbers for the longer series.
Why Seach Medical matters
Bizportal names Seach with InterCure and Tikun Olam as the dominant survivors of the shake-out (Bizportal, 6 January 2026, Hebrew). Its route was different from InterCure's: a small farm, its own factory and pharmacies, family control and a dividend, rather than scale and an international listing. The risks are visible too. Revenue has drifted down since the 2024 record, 2025 profit was wiped out in the fourth quarter, and the company is small. Together Pharma's 2025 annual report names Seach as one of its three main competitors, alongside InterCure. Both rivals are profiled in our Together Pharma and InterCure (Canndoc) guides. For the companies that did not survive, see Israel's cannabis shake-out. For every operator in one place, see the company directory and our Companies hub.
Compiled and reviewed by Tamar Levin, Editor. Sources are linked inline. This guide is informational and is not medical or legal advice; consult a licensed physician about your own treatment.
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