Medical cannabis company InterCure (TASE: INCR, Nasdaq: INCR), headed by Ehud Barak (Chairman of the Board of Directors) and Alexander Rabinovich (CEO), announced that it has raised NIS 66 million, with an option to increase the amount to NIS 107 million. Rehabilitation of its facility in Kibbutz Nir Oz in the Gaza Strip border area.
The investment is at close to the market price of the shares, giving InterCure a market value of NIS 235 million. The capital is being raised from existing shareholders, including Rabinovich, and from two new investors who will become parties to the company: technology investor Yaron Yacobi and real estate developer Tzachi Haggag. Each will hold more than 5% of InterCure when the round is completed.
InterCure also announced that it had obtained a NIS 30 million line of credit from an Israeli bank, whose name was not revealed.
“This investment represents a pivotal moment for InterCure, providing the momentum needed to reignite our growth and propel us forward,” Rabinowitz said. “After a challenging period with our southern facility on Kibbutz Nir Oz, this financing represents a major vote of confidence from investors who believe in the company’s growth strategy, together with one of Israel’s leading banks. 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 in particular.
“We remain hopeful of a quick end to the ongoing war and the return of all hostages, including our staff and close friends from the kibbutzim surrounding the Gaza Strip, to their homes, and we are confident in our ability to contribute significantly to these mission-related war recovery efforts in this region.”
InterCure, which until late 2023 was a growing and profitable company, suffered NIS 200 million damage to its production facility in Nir Oz on October 7. The facility produced half of the cannabis strains the company sells in Israel, its main market.
Under Israeli law, the company’s southern facility, located in an area affected by the terrorist attack and war in Gaza, is entitled to full compensation for all direct and indirect damages resulting from the Hamas attack, including loss of profits.
“To date, the company has received advance payments totaling tens of millions of new shekels from the Israeli authorities as part of this compensation. These advance payments, which represent only a small portion of the total damage to the company, have supported the initial stages of the ongoing restoration efforts. However, Given the length of the war and the fact that the last major payment was only received from the Israeli authorities in April 2024, the current funding will enable the company to successfully move forward with recovery and restoration efforts without further delay.
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“We expect that this financing will enable the company to return to the growth rates and profitability it achieved before the war during 2025. The company expects to receive significant additional payments from the Israeli authorities, which the company is entitled to receive, and it is working closely with its professional advisors and the authorities,” InterCure’s announcement said. To receive these payments.
In the first half of 2024, InterCure generated revenues of NIS 125 million, 40% less than in the corresponding period of 2023. It generated net profits of NIS 1.4 million for the period, compared to NIS 5.1 million for the corresponding period. Due to the damage to the southern facility, it recorded a loss of NIS 62 million for 2023 as a whole.
Published by Globes, Israel Business News – en.globes.co.il – on December 22, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.
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