Washington, D.C. 20549












(Translation of registrant’s name into English)


85 Medinat ha-Yehudim Street

Herzliya, 4676670, Israel

Tel: +972 77 460 5012

(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:


Form 20-F ☒ Form 40-F ☐







On August 31, 2023, Intercure Ltd. (the “Company”) issued a press release announcing its financial results for the six months ended June 30, 2023. Attached hereto are the following exhibits:


99.1:   Press Release dated August 31, 2023.







Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


  Intercure Ltd.
  By: /s/ Amos Cohen
  Name: Amos Cohen
  Title: Chief Executive Officer


Date: August 31, 2023




Exhibit 99.1



InterCure Announces Record Revenues First Half of 2023 with over 14% growth YOY


Achieved record revenues of NIS 209 million ($75 million)1 for the first half of 2023


Annualized revenue run rate of NIS 417 million ($149 million)


Adjusted EBITDA2 of NIS 30 million ($11 million)


Generated NIS 35 million ($13 million) cash from operations in the second quarter


Strong balance sheet with over NIS 116 million ($42 million) cash

and financial assets3 of NIS 71 million ($25 million)


NEW YORK, and HERZLIYA, Israel – Aug 31, 2023 – InterCure Ltd. (NASDAQ: INCR) (TASE: INCR) (dba Canndoc)(“InterCure” or the “Company”) is pleased to announce its financial and operating results for the six months ended June 30, 2023. All amounts are expressed in New Israeli Shekels (NIS) or Canadian dollars ($), unless otherwise noted.


Second Quarter and First Half 2023 Key Financial Highlights


Record revenue of NIS 209 million ($75 million) for first half of 2023 and NIS 102 ($36 million) for the second quarter of 2023, representing YOY growth of over 14% and 8% respectively.
Seventh consecutive half year growth representing an Annualized revenue run rate of NIS 417 million ($149 million).
Gross profit of NIS 68 million ($24 million), 33% of revenue, for first half of 2023 and NIS 33 million ($12 million), 32% of revenue for the second quarter.
EBITDA2 of NIS 30 million ($11 million) for first half of 2023, representing 14% of revenue and NIS 14 million ($5 million) for the second quarter.
Generated positive NIS 35 million ($13 million) cash from operations in the second quarter and a negative NIS 17 million ($6 million) for the first half.
Cash and restricted cash at period end of over NIS 116 million ($42 million) and financial assets3 of NIS 71 million ($25 million). As the interest rate environment is changing, we are constantly revising our financing structure. During the first half of 2023 we voluntarily repaid loans of NIS 86 million ($31 million).


Second Quarter and First Half 2023 Key Operating Highlights


Sustained market share growth during first half of 2023 due to solid demand for Canndoc’s branded products with more than 20 new SKU’s successful launches during the period marking Intercure’s leading position in all categories.
The cultivation operation successfully added 18 new highly demanded strains into its growth cycles. Including new high THC Humbolt cultivars. These are expected to launch during the third and fourth quarters.



1 All amounts are expressed in New Israeli Shekels (NIS) or Canadian Dollar ($).

2 Means EBITDA for the cannabis sector adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, non-controlling interest and other expenses (or income).

3 Financial assets are mainly debts and loans included in other receivables.







 Signing collaboration agreement (in the form of a license agreement) with legendary boxer, entrepreneur, and cannabis advocate Mike Tyson’s premium cannabis brand. Under the terms of the agreement, InterCure will be granted the right on exclusive basis to cultivate, manufacture, sell, market and distribute all approved products and brands of TYSON 2.0 In Israel, Germany, France Australia and the United Kingdom. InterCure will also have the right to use the name, the marks and the TYSON 2.0 intellectual property in the said territories.
Announced a voluntary delisting of our ordinary shares from the Toronto Stock Exchange, due to the fact that maintaining the listing did not offer substantial benefits to InterCure and its shareholders. InterCure’s shares continue to be trade on Nasdaq and the Tel Aviv Stock Exchange.
on August 7, 2023 the minister of health announced a new reform of the Israeli medical cannabis regulations. The new regulations are set to revolutionize the process of prescribing medical cannabis to patients by allowing physicians to prescribe medical cannabis as the first line of treatment (for the first time). In addition, the new regulations will eliminate bottlenecks that have been burdened the industry during the last years. This includes easing cultivation, manufacturing and exportation procedures and regulations. Additionally matching the GMP standards between Israel and Europe and transition to self-regulation similar to the Israeli pharmaceutical industry. The new reform also set a process for the introduction of new formats like vapes, edibles, extracts and other non-flower formats. Furthermore, the reform set a date of February 2024 to reschedule CBD out of the narcotic law which will allow CBD based products to be sold over the counter.
The new reform is expected to put into effect within the next coming months and it is expected to increase the number of patients and the demand for medical cannabis products after a long period of stagnation in the Israeli market. As we updated in the previous quarter, financially struggling companies and companies exiting the market continue to liquidize low-to-medium quality inventories at lower prices. This had an impact primarily on our ultra-medical and legacy products.
On June 15, 2023, Tel Aviv-Jaffa District Court dismissed the lawsuit against Intercure and the parties agreed on a binding arbitration process in which the amount owed to Intercure and the parties will be determined and paid as part of a full separation process. According to the company’s position, Cannolam owes Intercure tens of NIS millions (which are not included in the financial assets mentioned) and Intercure’s claim has been submitted to an arbitrator who is expected to rule within the next month. The separation process has a negative effect on the performance of Cannolam that could not be evaluated at this time, Intercure intends to exhaust its full rights against the minority shareholders of Cannolam. Previously, on April 24, 2023, a lawsuit was filed against Intercure in Tel Aviv-Jaffa District Court in Israel by minority shareholders of our subsidiary, Cannolam. The lawsuit relates to disagreements concerning the ongoing management of Cannolam. Intercure has conducted a preliminary review of the claims made by the minority shareholders and find that they lack a valid legal basis.
Commercial launches of our GMP products in UK and Germany expected during the fourth quarter of 2023 and the first quarter of 2024 as registration process are undergoing.


“First half of 2023 is another solid performance for Inercure, with year-over-year revenue growing 14% to $ million and adjusted EBITDA margin of 14%. I am proud of our team ability to execute despite some challenging market conditions when big players are exiting the space.” said InterCure CEO Alexander Rabinovitch. In the second quarter we generated $31 million in operating cash flow and ended the quarter with $42 million of cash and $25 of financial assets on our balance sheet. We continue to optimize our operations for continued growth supported by our leading position. We are encouraged from the new regulations in Israel and Germany as pharmaceutical cannabis becoming a world standard across Europe and many other territories. We are also keeping an open eye on the U.S. Department of Health and Human Services scientific and medical evaluation, supporting cannabis to be classified as a Schedule III drug by the DEA and the opportunities it may generate to Intercure.”






Half Year Revenues 2020 to 2023




Key Quarterly Financial Highlights – Cannabis Sector


   H1-23   H2-22   H1-22   H2-21   H1-21 
Revenues   208,614    206,178    182,506    141,396    78,281 
Gross Profit (1)   67,945    81,558    77,399    61,295    34,694 
GP Margin   33%   40%   42%   43%   44%
Adjusted EBITDA(2)   29,669    40,714    43,411    35,132    21,765 
Adjusted EBITDA(2) Margin   14%   20%   24%   25%   28%




  (1) Gross profit before effect of fair value.
  (2) EBITDA adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, non-controlling interest and other expenses (or income). This is a non-IFRS financial measure and does not have a standardized meaning prescribed by IFRS, please see “Non-IFRS Measures” below.






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 medical cannabis producer and one of the first to offer Good Manufacturing Practices (GMP) certified and pharmaceutical-grade medical cannabis products. InterCure leverages its international 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.


Non-IFRS Measures


This press release makes reference to certain non-IFRS financial measures. Adjusted EBITDA, as defined by InterCure, means earnings before interest, income taxes, depreciation, and amortization, adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, non-controlling interest and other expenses (or income). This measure is not a recognized measure under IFRS, does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. InterCure’s method of calculating this measure may differ from methods used by other entities and accordingly, this measure may not be comparable to similarly titled measured used by other entities or in other jurisdictions. InterCure uses this measure because it believes it provides useful information to both management and investors with respect to the operating and financial performance of the company. A reconciliation of Adjusted EBITDA to an IFRS measure (revenue), which is incorporated by reference to this press release, is available in InterCure’s MD&A included in our Annual Report on Form 20-F under the heading “Results of Operation”, available under the Company’s profile on SEDAR at www.sedar.com.


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 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 Company’s future revenue growth and profitability, the 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 and the war in Ukraine, macro economic factors (including inflation) and uncertainty created as a result of the socio-political situation in Israel. 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, reliance on the expertise and judgment of senior management, as well as the factors discussed under the heading “Risk Factors” in InterCure’s Annual Information Form for the year ended December 31, 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 registration statement on Form 20-F, filed with the Securities Exchange Commission on May 1, 2023. 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.




Amos Cohen, Chief Financial Officer (Amos@intercure.co)







As of June 30, 2023 (Unaudited)


Condensed Consolidated Interim Statements of Financial Position


   For the 6-months ended on
June 30
   NIS in thousands 
   2023   2022 
   (Unaudited)   (Audited) 
Cash and cash equivalents   102,653    232,589 
Restricted cash   13,788    13,907 
Trade receivables, net   42,623    36,919 
Other receivables   91,747    97,375 
Inventory   136,443    120,133 
Biological assets   7,058    6,365 
Financial assets measured at fair value through profit or loss   192    205 
Total current assets   394,504    507,493 
Property, plant and equipment and right-of-use asset   96,970    103,133 
Goodwill   284,181    284,181 
Deferred tax assets   23,625    20,635 
Financial assets measured at fair value through profit or loss   2,565    2,565 
Investment in associate and loan   40,000    40,000 
Total non-current assets   447,341    450,514 
TOTAL ASSETS   841,845    958,007 
Short term loan and current maturities   56,521    126,935 
Trade payables   104,605    126,067 
Other payables   39,524    48,397 
Contingent consideration   6,145    10,230 
Short term loan from non-controlling interest   957    1,090 
Total current liabilities   207,752    312,719 
Long term loans   84,067    99,684 
Liabilities in respect of employee benefits   1,079    1,025 
Lease liability   21,295    23,102 
Total long-term liabilities   106,441    123,811 
Share capital, premium and other reserves   634,383    632,025 
Capital reserve for transactions with controlling shareholder   2,388    2,388 
Receipts on account of shares   8,541    8,541 
Accumulated losses   (136,552)   (141,649)
Equity attributable to owners of the Company   508,760    501,305 
Non-controlling interests   18,892    20,172 
TOTAL EQUITY   527,652    521,477 
TOTAL LIABILITIES AND EQUITY   841,845    958,007 






Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income


   For the 6-months ended on
June 30
   Year ended
December 31
   NIS in thousands 
   2023   2022   2022 
   (Unaudited)   (Unaudited)   (Audited) 
Revenue   208,614    182,506    388,684 
Cost of revenue before fair value adjustments   140,669    105,107    229,727 
Gross income before impact of changes in fair value   67,945    77,399    158,957 
Unrealized changes to fair value adjustments of biological assets   4,339    7,881    13,054 
Loss from fair value changes realized in the current year   5,316    2,270    16,928 
Gross Profit   66,968    83,010    155,083 
Research and development expenses   256    338    632 
General and administrative expenses   21,856    16,958    36,082 
Sales and marketing expenses   27,800    24,112    56,533 
Other expenses, net   2,919    1,124    2,128 
Changes in the fair value of financial assets through profit or loss, net.   12    123    174 
Share based payments   2,358    2,441    8,907 
Operating Profit   11,767    37,914    50,627 
Financing income   2,252    8,805    8,170 
Financing expenses   11,842    6,099    14,955 
Financing expenses (income), net   9,590    (2,706)   6,785 
Profit before tax on income   2,177    40,620    43,842 
Tax (expense) benefit   1,640    (10,445)   (93)
Total comprehensive Profit (loss)   3,817    30,175    43,749 
Profit (loss) attributable to:               
Owners of the Company   5,097    29,012    44,819 
Non-controlling interests   (1,280)   1,163    (1,070)
Total   3,817    30,175    43,749 
Interest / Financing expense (income) net   9,590    (2,706)   6,785 
Tax expenses (benefit)   (1,640)   10,445    93 
Depreciation and amortization   6,442    4,629    2,354 
EBITDA   18,209    42,543    52,981 
Share-based payment expenses   2,358    2,441    (2,004)
Other expenses (income(, net   2,919    1124    2128 
Impairment losses and (gains) on financial assets through profit and loss   12    123    174 
Fair value adjustment to inventory   977    (5611)   (3527)
Adjusted EBITDA   24,475    40,620    49,752 
Earnings per share               
Basic earnings   0.11    0.64    0.99 
Diluted earnings   0.11    0.64    0.99