News Release Details

Estimated revenue reaches CAD$36 million ¹(a record NIS 95 million)

Anticipates continued increases in EBITDA

Revenue growth expected to continue in Q3 and throughout 2022

NEW YORK and TORONTO and HERZLIYA, Israel, July 21, 2022 (GLOBE NEWSWIRE) -- InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) ("InterCure" or the “Company”) today announced record preliminary financial results for the second quarter of 2022. All amounts are expressed in Canadian dollars ($) or New Israeli Shekels (NIS), unless otherwise noted.

Preliminary Second Quarter 2022 Financial Highlights and Milestones

• Record revenue estimated to be $36 million (NIS 95 million), more than double the revenues of the second quarter of 2021 and representing sequential growth of over 9%.
  
• Tenth consecutive quarter of high growth representing an annualized run rate of $143 million (NIS 380 million).
• Company expects continued increases in revenues during the third quarter of 2022.
• Sustained market share growth due to solid demand for Canndoc's branded products and expansion of the Company’s medical cannabis dispensing operations.
• Successful opening of the first flagship Cookies retail location in Austria, located in the center of Vienna.
• Continued expansion of the Company's medical cannabis dedicated pharmacy chain with the grand opening of InterCure's flagship Cookies branded pharmacy in Be'er Sheva, the largest city in Israel's southern region.

InterCure’s Chief Executive Officer, Alexander Rabinovitch said: "Our solid operating performance in the second quarter, led us to our tenth consecutive quarter of profitable growth." Rabinovitch continued: "InterCure is focused on developing and launching the world's leading pharmaceutical grade medical cannabis products in parallel to the global expansion of our production and distribution platform. InterCure's target markets are evolving at a rapid pace as more and more countries adopt supportive regulations that allow us to operate and implement our leading model."

The Company plans to file its full financial results for the second quarter on Monday, August 15, 2022.

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¹ CAD conversion rate from NIS as of 06.30.2022

About InterCure (dba Canndoc)

InterCure (dba Canndoc) (NASDAQ: INCR) (TSX: INCR.U) (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: http://www.intercure.co.

Caution Regarding Financial Estimates

The financial estimates set forth above are based on an initial review of the Company’s operations for the quarter ended June 30, 2022 and are subject to change. The Company’s independent registered public accounting firm, Somekh Chaikin (member firm of KPMG International), has not audited, reviewed or performed any procedures with respect to the accompanying financial estimates and other data, and accordingly does not express an opinion or any other form of assurance with respect thereto. They should not be viewed as a substitute for audited financial statements prepared in accordance with generally accepted accounting principles and are not necessarily indicative of the Company’s results for any future period.

Forward-Looking Statements

This press release may contain forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to InterCure’s objectives plans and strategies, 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. Specific forward-looking statements contained in this press release include, but are not limited to: the Company’s Q2 2022 revenue, the success of its global expansion plans, the expected annualized revenue for 2022, and its expansion strategy to major markets worldwide. Forward-looking statements 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 Company’s future revenue growth and profitability, the expected operations, financial results business strategy, competitive strengths, expansion strategy to major markets worldwide, the legalization of CBD in Israel and its impacts on the Company, the impact of the COVID-19 pandemic and the war in Ukraine. 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 Israeli, U.S. and Canadian regulatory landscapes and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, reliance on the expertise and judgment of senior management, as well as the factors discussed under the heading “Risk Factors” in the Company Annual Information Form dated April 5, 2022 which is available on SEDAR at www.sedar.com, and under the heading “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the annual report on Form 20-F, filed with the Securities Exchange Commission on April 28, 2022. InterCure undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Contact:

InterCure Ltd.
Amos Cohen, Chief Financial Officer
amos@intercure.co