- The funding may increase to NIS
107M to support the expansion of the facility in
collaboration with the "Tkumah" administration, post-war.
- The funding includes investments from key shareholders of
the company, including CEO Alexander
Rabinovich, as well as lead investors Yaron Yakobi and Tzahi
Hagag who will become significant shareholders.
- Funding also includes a loan from a major Israeli
bank.
- Completing the post-war damage recovery processes will
enable the company to return to profitable growth without further
delay, including exercising the cookies agreement and expanding
international operations in Germany, the UK, and Australia.
- The Company anticipates receiving additional substantial
payments from the Israeli authorities, as part of the full
compensation for war related damages, including loss of profits the
Company is entitled to.
NEW
YORK and HERZLIYA, Israel, Dec. 20,
2024 /PRNewswire/ -- InterCure Ltd. (NASDAQ: INCR)
(TASE: INCR) (dba Canndoc) ("InterCure" or the
"Company"), is pleased to announce that further to the
Company's prior reports regarding the war-related damages and the
reconstruction efforts of its facility in Kibbutz Nir Oz, the
Company was successful in obtaining funding commitments of
NIS 66 million (approximately
USD 18.2M), which may increase to
NIS 107 million (approximately
USD 29.8M).
The funding includes a commitment by certain investors,
including the Company's Chief Executive Officer, Mr. Alexander Rabinovich, and two existing
shareholders, Mr. Yaron Yakobi and
Mr. Tzahi Hagag, who, as a result of
the investment, will each hold more than 5% of the Company's issued
and outstanding share capital (collectively, the "Investors") to
purchase ordinary shares of the Company by way of a private
placement (the "Private Placement"). In the Private Placement,
InterCure has agreed to issue to the Investors (i) an aggregate of
7,349,896 ordinary shares of the Company, at a purchase price of
NIS 4.83 (approximately USD 1.34) per ordinary share, at a premium above
the opening price of InterCure's ordinary shares on the Tel Aviv
Stock Exchange on the morning of Monday,
December 16, 2024, which was NIS
4.81 per share (the "Determining Date") and (ii)
warrants (the "Warrants") to purchase up to an additional 7,349,896
ordinary shares of the Company at an exercise price equal to
NIS 5.70 (approximately USD 1.58) (the "Exercise Price"), at an 18%
premium above the opening price of InterCure's ordinary shares on
the Determining Date, which may further increase the proceeds from
the Private Placement up to a total of approximately NIS 77 million (approximately USD 21.5M) if the Warrants are fully exercised in
cash. All of the issued securities shall be restricted under the
Nasdaq rules. The consideration for the allocated securities was
determined through negotiations between the Company and the
Investors, based on the opening share price on the Determining
Date. The Private Placement is subject to certain closing
conditions, which include the approval of the shareholders of the
Company.
In addition, the Company received a binding commitment from one
of the leading banks in Israel, to
provide the Company with a loan of NIS
30M (approximately USD 8.3M),
for a period of up to 24 months (the "Loan"). The Loan is subject
to certain closing conditions, including closing the Private
Placement.
"This investment marks a pivotal moment for InterCure,
delivering the momentum needed to reignite our growth and drive us
forward," said Alexander Rabinovich,
CEO of InterCure. "Following a challenging period with our Southern
Facility in Kibbutz Nir Oz, this funding, represents a huge vote of
confidence from investors who believe in the Company's growth
strategy, alongside one of the leading banks in Israel. We believe this investment will enable
us to strengthen our position in Israel and drive our expansion into key
international markets, with a focus on Europe and Germany particularly. We remain hopeful for a
swift end to the ongoing war and the return of all hostages,
including our employees and our close friends from the kibbutzim
surrounding the Gaza strip, to
their homes and we are confident in our ability to contribute
significantly to the post-war recovery efforts of such area. We
expect that this funding will empower us to complete our recovery,
and drive InterCure's return to growth and profitability through
the year 2025."
Under Israeli law, the Company's Southern Facility, located in
an area impacted by the terrorist attack and the war in
Gaza, is entitled to full
compensation for all direct and indirect damages incurred,
including loss of profits. To date, the Company has received
advance payments totaling tens of millions of NIS from Israeli
authorities as part of this compensation. These advances, which
represent only a small portion of the Company's total damages, have
supported the initial phases of the ongoing restoration efforts.
However, given the prolongation of the war and the fact that the
last significant advance was received from the Israeli authorities
only in April 2024, the current
funding, will enable the Company to successfully advance its
recovery and restoration efforts without further delays. We expect
that this funding will position the Company to return to the growth
and profitability rates it achieved prior to the war, during the
year 2025. The Company anticipates receiving additional substantial
payments from the Israeli authorities, to which the Company is
entitled to, and is working closely with its professional advisors
and the authorities to receive these payments.
Additionally, in collaboration with "Tkumah Administration" and
other authorities in Israel, the
Company is working to significantly develop and expand its Southern
Facility immediately upon the conclusion of the Gaza war as part of its recovery efforts for
the kibbutzim surrounding the Gaza
strip. This expansion aligns with InterCure's global growth
strategy, which includes doubling production capacity in
Israel and enhancing our portfolio
of high-quality products using advanced technologies, targeted at
developing markets globally, including Germany, the UK, Australia, and more.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
ordinary shares or warrants in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About InterCure (dba Canndoc)
InterCure (dba Canndoc) (NASDAQ: INCR) (TASE: INCR) is the
leading, profitable, and fastest growing cannabis company outside
of North America. Canndoc, a
wholly owned subsidiary of InterCure, is Israel's largest licensed cannabis producer
and one of the first to offer Good Manufacturing Practices (GMP)
certified and pharmaceutical-grade medical cannabis products.
InterCure leverages its market leading distribution network, best
in class international partnerships and a high-margin vertically
integrated "seed-to-sale" model to lead the fastest growing
cannabis global market outside of North
America.
For more information, visit www.intercure.co.
Forward–Looking Statements
This press release contains forward-looking statements that are
subject to substantial risks and uncertainties. Forward-looking
statements may include, but are not limited to, the Company's
success of its global expansion plans, its expansion strategy to
major markets worldwide, the inability to successful complete the
proposed transaction; statements relating to the security events in
Israel, as well as statements,
other than historical facts, that address activities, events or
developments that InterCure intends, expects, projects, believes or
anticipates will or may occur in the future. These statements are
often characterized by terminology such as "believes," "hopes,"
"may," "anticipates," "should," "intends," "plans," "will,"
"expects," "estimates," "projects," "positioned," "strategy" and
similar expressions and are based on assumptions and assessments
made in light of management's experience and perception of
historical trends, current conditions, expected future developments
and other factors believed to be appropriate. Forward-looking
statements are not guarantees of future performance and are subject
to risks and uncertainties that could cause actual results to
differ materially from those expressed or implied in such
statements. Many factors could cause InterCure's actual activities
or results to differ materially from the activities and results
anticipated in forward-looking statements, including, but not
limited to, the following: the successful completion of the
proposed transactions, the Company's success of its global
expansion plans, its continued growth, the expected operations,
financial results business strategy, competitive strengths, goals
and expansion and growth plans, expansion strategy to major markets
worldwide, the impact of the COVID-19 pandemic, the impact of the
war in Israel and the war in
Ukraine and the conditions of the
markets generally. Forward-looking information is based on a number
of assumptions and is subject to a number of risks and
uncertainties, many of which are beyond InterCure's control, which
could cause actual results and events to differ materially from
those that are disclosed in or implied by such forward-looking
information. Such risks and uncertainties include, but are not
limited to: changes in general economic, business and political
conditions, changes in applicable laws, the U.S. regulatory
landscapes and enforcement related to cannabis, changes in public
opinion and perception of the cannabis industry, and reliance on
the expertise and judgment of our senior management. More detailed
information about the risks and uncertainties affecting us is
contained under the heading "Risk Factors" included in the
Company's most recent Annual Report on Form 20-F and in other
filings that we have made and may make with the Securities and
Exchange Commission in the future.
Contact:
InterCure Ltd.
Amos
Cohen, Chief Financial Officer
amos@intercure.co
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SOURCE InterCure Ltd.
