Canndoc To Purchase Better Holdings, 50% Of Cann Pharmaceutical For $35M
InterCure LTd. (TASE: INCR), doing business as Canndoc, is poised to acquire medical cannabis brand Better Holdings.
The Israeli cannabis company inked a letter of intent to purchase 100% of Cann Pharmaceutical Ltd.'s shares, including Better’s Israel-based operations and 50% of Cann's shares, for $35 million.
The sum will be payable in InterCure's shares subject to a three-year lock-up period. Up to one-third of the shares will be released each year.
Apart from Israel, Better operates in Australia. In 2019, it obtained approval to conduct a phase II clinical trial of its lead therapy, EP1, in the Land Down Under. The treatment aims to help children who have refractory epilepsy and adolescents who failed to respond to pharmacological therapy.
Under the deal with Cann, InterCure will have an option to invest up to $2.5 million in Better Australia in exchange for an 11% ownership stake. In addition, Cann’s shareholders will be obliged to the same.
“Today’s announcement is a historical milestone in the Israeli cannabis industry as we prepare to add Better, a pioneer of our industry, to the InterCure family,” Ehud Barak, InterCure’s chairman said.
“We believe our combined business strengths and capabilities will help us to connect more effectively with new and existing patients in Israel and internationally,” he added.
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