Intercure (TASE: INCR; NASDAQ: INCR), a medical cannabis company led by Ehud Barak (chairman) and Alexander Rabinovich (CEO), raises NIS 66 million, increasing funding to NIS 107 million. The company announced that it had procured it with an option to do so. Renovation of facilities in Kibbutz Nir Oz in the Gaza Strip border area.
The investment will be made at a price close to the market price of the stock and will give Intercur a market capitalization of NIS 235 million. Capital will be raised from existing shareholders, including Rabinovich, and two new investors who will become stakeholders in the company: technology investor Yaron Jacobi and real estate developer Tzahi Haggag. Upon completion of the round, each will own more than 5% of InterCure.
Intercure also announced that it had obtained a NIS 30 million loan facility from an Israeli bank, although the name of the bank was not disclosed.
“This investment is a pivotal moment for Intercure, reigniting our growth and providing the momentum we need to move our company forward,” Rabinovich said. “After a difficult period at our southern facility in Kibbutz Nir Oz, this funding represents a major vote of confidence from investors who believe in the company’s growth strategy, alongside one of Israel’s leading banks. We believe that this investment will enable us to: ” strengthen our position in Israel and drive our expansion into key international markets, with a particular focus on Europe and Germany. .
“We remain hopeful that the ongoing war will come to a swift end and that all hostages, including employees and close friends of the kibbutzim surrounding the Gaza Strip, will be returned to their homes, and we can make a significant contribution to this mission. ” – such regional war reconstruction efforts. ”
Intercur, which was growing and profitable until the end of 2023, suffered damage to its NIS 200 million production facility in Nir Oz on October 7th. The facility produced half of the cannabis strains the company sells in Israel, its main market.
Under Israeli law, the company’s southern facilities, located in areas affected by terrorist attacks and the war in Gaza, are fully compensated for all direct and indirect damages caused by Hamas attacks, including lost profits. have the right to receive it.
“To date, we have received advances totaling tens of millions of NIS from the Israeli authorities as part of this compensation. But the war Given the protracted nature of the recovery and the fact that the last significant progress was only made by the Israeli authorities in April 2024, we hope that this funding will allow us to begin recovery and reconstruction without further delay. You will be able to proceed with your efforts successfully.
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“We expect that this financing will enable us to return to the growth and profitability rates we achieved before the war during 2025. We expect to receive additional significant payments from the Israeli authorities and You are entitled to this. Intercur’s statement said it is working closely with professional advisors and authorities to receive these payments.
In the first half of 2024, Intercur’s sales were NIS 125 million, 40% lower than the same period in 2023. Net profit for the same period was NIS 1.4 million, compared to NIS 5.1 million in the same period. Damage to the southern facility resulted in a total loss of NIS 62 million in 2023.
Published by Globes, Israel Business News – en.globes.co.il – on December 22, 2024.
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