INCR

Leadership Change at InterCure: Mr. Ehud Barak will resign as Chairman of InterCure's board on February 13, 2025, with Mr. Alexander Rabinovich taking over after successfully leading the company as CEO for five years.

Company Recovery Efforts: InterCure is focused on restoring its Nir Oz facility, re-launching existing products, and expanding its pharmaceutical cannabis portfolio to better serve patient needs.

InterCure Overview: InterCure Ltd. is highlighted in the news, showcasing its branding and market presence.

Recent Developments: The company has made significant strides in its operations and product offerings, reflecting growth and innovation in its sector.

Funding for Expansion: InterCure Ltd. has secured funding commitments of NIS 66 million, potentially increasing to NIS 107 million, from key shareholders and a major Israeli bank to support the recovery and expansion of its facility post-war, aiming for growth in international markets like Germany, the UK, and Australia.

Post-War Recovery Plans: The company anticipates receiving additional compensation from Israeli authorities for war-related damages, which will aid in completing restoration efforts and returning to profitability by 2025, while also planning to double production capacity and enhance product offerings.

Company Performance: InterCure Ltd. reported H1 2024 revenues of 126 million NIS, exceeding estimates but significantly lower than pre-October 2023 levels due to disruptions at its southern Israeli facility. The company anticipates a return to full operational capacity soon and projects double-digit sales growth in H2 2024.

Financial Outlook: Despite a drop in cash reserves from 111 million NIS to 21 million NIS and an increase in net debt, InterCure's EBITDA for H1 2024 was stronger than expected at 17.6 million NIS, aided by government compensation. The stock valuation remains attractive, trading at 1x sales and 8x EBITDA for CY25.

Cannabis Sector Developments: SNDL acquired Indiva to enhance its presence in the cannabis edibles market, while Ascend Wellness underwent a leadership overhaul due to financial struggles. Avicanna reduced debt through a private placement, and InterCure reported near break-even results despite ongoing conflict in Israel.

Psychedelic Sector Highlights: Awakn made progress in its pre-clinical program for PTSD treatments, and Red Light Holland showed improved financial performance with increased revenue and strategic growth plans, including a significant reorder from Costco Canada.

Financial Performance: InterCure Ltd. reported a revenue of NIS 126 million ($34.58 million) for the first half of 2024, down from NIS 147 million in the second half of 2023, largely impacted by damages from the October 7th terror attack on its facility. The company also experienced a total loss of NIS 6,000 compared to a profit of NIS 3.8 million in the same period last year.

Strategic Expansion: The company is expanding its partnership with Cookies into the German market and plans to launch over 30 new GMP SKUs in the second half of 2024, aiming for double-digit growth. InterCure continues to enhance its medical cannabis pharmacy chain, now totaling 24 locations, while expecting compensation from authorities for damages incurred.

Financial Performance: InterCure reported revenues of NIS 126 million and an adjusted EBITDA of NIS 21 million for the first half of 2024, marking its 16th and 17th consecutive quarters of profitability despite challenges from a terrorist attack and ongoing conflict in Gaza.

Expansion Plans: The company is expanding its strategic partnership with Cookies™ into Germany, anticipating product launches in late 2024, and expects double-digit growth in the second half of 2024 driven by new market entries.

InterCure and Cookies Partnership: InterCure Ltd. has formed a strategic agreement with the cannabis brand Cookies to cultivate, manufacture, import, and distribute Cookies-branded products in Germany, expanding their partnership across Europe following Germany's recent cannabis legislation.

Market Growth Potential: The collaboration aims to leverage Cookies' renowned retail experience and product offerings in the rapidly growing medical cannabis market in Germany, Austria, and the UK, amidst a significant increase in medical cannabis prescriptions in Germany.