Intercure (NASDAQ:INCR) Stock, Quote.Headers.trade-ideas

Intercure

Intercure Ltd is engaged in the research, cultivation, production, and distribution of pharma-grade cannabis-based products. The products are distributed to hospitals, pharmacies, research, and government organizations. The company has two segments namely: Cannabis segment and Biomed segment, out of which it derives maximum revenue from Cannabis segment.

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InterCure Ltd. has shown resilience in its H1 2024 performance despite facing significant challenges according to research by Z&amp;A.

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Some European cannabis companies are already planning initial public offerings (IPOs) on the Nasdaq, encouraged by the prospect of a less restrictive regulatory environment. The potential rescheduling of cannabis to Schedule III of the Controlled Substances Act and Germany’s recent decriminalization have ignited optimism within the sector.

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Intercure shares are trading higher after the company announced it secured funding commitments for NIS 66M to support Nir Oz facility recovery.

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InterCure Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INCR#NASDAQ">INCR</a>) has shown resilience in its H1 2024 performance despite facing significant challenges, according to equity research by Pablo Zuanic of Zuanic &amp; Associates. The company reported revenues of 126 million NIS ($33.97 million), surpassing the estimated 121 million NIS. 
However, this is still below pre-October 2023 levels of 414 million NIS, mainly due to the ongoing disruption at its southern Israeli facility, which has been occupied by the IDF. The company invested heavily in restoring this facility and expects it to return to full operational capacity in the coming quarters.
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<h3 class="wp-block-heading">Cash Reserves Plummet: Government Compensation Boosts EBITDA&nbsp;</h3>
InterCure reported an EBITDA of 17.6 million NIS for H1 2024, compared to the 5 million NIS estimate. However, this includes government compensation for damages caused by the conflict, which makes comparisons difficult.&nbsp;
The company ended June with 21 million NIS in cash, down from 111 million NIS in December 2023. Additionally, Zuanic noted the net debt increased from 60 million NIS to 112 million NIS over the same period, although the company has access to an unused credit line of over 22 million NIS.
<h3 class="wp-block-heading">Double-Digit Growth On The Horizon</h3>
Looking ahead, InterCure is guiding for double-digit sales growth in H2 2024, with revenues expected to reach around 140 million NIS, lower than previous estimates of 180 million NIS.&nbsp;
The company's expansion strategy includes launching more than 30 new GMP SKUs in collaboration with brands such as Cookies, Binske and Organigram (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OGI#NASDAQ">OGI</a>). InterCure plans to introduce Cookies products in <a href="https://www.benzinga.com/topic/germany-cannabis">Germany</a> by Q4 2024, in addition to ongoing sales in the <a href="https://www.benzinga.com/topic/uk-cannabis">UK</a>.
<h3 class="wp-block-heading">Stock Performance And Valuation</h3>
The stock has experienced a drop from its May 2024 peak of $3.12 to $1.97. Despite the decline, Zuanic notes that the company's valuation remains attractive, with the stock trading at 1x sales and 8x EBITDA for CY25.&nbsp;
InterCure&#8217;s enterprise value is currently <a href="https://www.benzinga.com/topic/pablo-zuanic">estimated by Zuanic </a>at $132 million, including $96 million in market capitalization and $36 million in net debt.
Read Next:<a href="https://www.benzinga.com/markets/cannabis/24/09/40835255/cannabis-powerhouse-planet-13-boosts-nevada-presence-with-6-9m-dispensary-acquisition-new-growth"> Cannabis Powerhouse Planet 13 Boosts Nevada Presence With $6.9M Dispensary Acquisition &amp; New Growth Strategy</a>

InterCure Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INCR#NASDAQ">INCR</a>) (TASE:INCR) reported its financial and operating results for the six months ended June 30, 2024. The Israeli-based cannabis operator posted revenue of NIS 126 million ($34.58 million), compared to NIS 147 million in the second half of 2023. The company noted that the October 7th terror attack affected the company's revenues in the first half of 2024 due to damages to its southern facility located at Kibbutz Nir Oz.
&#8220;Yesterday, we announced the expansion of our strategic partnership with Cookies to the German market, the largest market in Europe, which is experiencing accelerated growth and becoming a key target market for Intercure," stated CEO Alexander Rabinovitch. "InterCure grew double-digit in the first half and presented profitable quarters, the 16th and 17th in a row. This consistent performance highlights our business model&#8217;s strength and commitment to leading the pharmaceutical cannabis market even in this challenging time. In the first half, we heavily invested in the restoration of the company&#8217;s main facility located at Kibbutz Nir Oz. The facility was damaged by the terrorist attack and is expected to gradually return to full capacity in the coming quarters, in accordance with receiving compensation from the authorities for the direct and indirect damages which the company is entitled to.&#8221;
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<h2 class="wp-block-heading">First Half 2024 Financial Highlights</h2>
<ul>
<li>Adjusted EBITDA reached NIS 20.8 million compared to NIS 31.2 million in the second half of 2023.</li>
</ul>
<ul>
<li>Gross profit amounted to NIS 40.4 million in line with NIS 40.4 million in the second half of 2023.</li>
<li>Total loss was NIS 6,000 compared to income of NIS 3.8 million in the same period of 2023.</li>
<li>At the end of the reporting period, on June 30, Intercure had NIS 370.8 million in assets, compared to NIS 414.5 million at the end of June 2023.</li>
<li>The company's cash on hand was NIS 21 million, while it has an unused credit line of over NIS 22 million. InterCure expects to receive additional substantial advance payments from the Israeli authorities as part of the compensation it is entitled to due to damages caused to the Southern Facility.</li>
</ul>
Read Also: <a href="https://www.benzinga.com/markets/cannabis/24/07/39827388/european-cannabis-companies-race-to-the-nasdaq-1b-in-tax-break-on-the-horizon">European Cannabis Companies Race To The Nasdaq: $1B In Tax Break On The Horizo</a>
<h2 class="wp-block-heading">Recent Operational Milestones</h2>
<ul>
<li>Continued expansion of company&#8217;s dedicated medical cannabis pharmacy chain to a total of 24 active locations as of today. As of October 2023, InterCure holds 100% of Cannolam LTD including the full rights to Cookies international agreements, alongside Israel's largest chain of dedicated medical cannabis pharmacies, Givol.</li>
<li>Expanded its European footprint with new strategic agreements with Cookies. Enhanced branded product offerings with the most-recognized global cannabis brand and expects to launch Cookies Corners licensed pharmacies in Germany and UK, alongside differentiated online platforms with the official cookies retail experience.</li>
<li>Plans to launch more than 30 new GMP SKUs during the second half of 2024 executing collaborations with Cookies, Binske, Organigram (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OGI#NASDAQ">OGI</a>) and others.</li>
</ul>
InterCure reported that it expects double-digit growth throughout the second half of 2024 compared to the first half of 2024.
&#8220;Intercure is set for significant growth in the coming quarters and years in all territories, and to that end, we have executed strategic actions to strengthen the company&#8217;s high-quality cultivation and supply chain in Canada and Europe," Rabinovitch continued.
<h2 class="wp-block-heading">Price Action</h2>
InterCure shares were 2.47% higher at $2.28 per share on Friday afternoon.
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Photo: Courtesy of&nbsp;HTWE&nbsp;via Shutterstock&nbsp;

Intercure shares are trading higher. The company reported H1 financial results.

<ul>
<li>Revenues for the first half of 2024 were affected by damages caused by the terrorist attack on October 7, 2023, and the war in Gaza.</li>
<li>InterCure is entitled to full compensation from the Israeli authorities for all direct and indirect damages caused to its Southern Facility located at Kibbutz Nir Oz. To date, InterCure has already received tens of millions of NIS as partial advance payments from the Israeli authorities.</li>
<li>Announced Expansion of its strategic partnership with Cookies&trade;&nbsp;to Germany and expects to launch first Cookies products in Germany in the&nbsp;fourth quarter&nbsp;of 2024.</li>
<li>Restoring the Southern Facility&nbsp;continues in accordance with receiving advance payments from the Israeli authorities.</li>
<li>Expects double digit growth throughout the second half of 2024 (compared to first half of 2024) due to expected launches in German and UK markets.</li>
</ul>

InterCure H1 Revenue NIS125.733M Down From NIS208.614M YoY, Adjusted EBITDA NIS20.829M Down From NIS29.669M YoY

Some European cannabis companies are already planning&nbsp;initial public offerings (IPOs) on the Nasdaq, encouraged by the prospect of a less restrictive&nbsp;regulatory&nbsp;environment. The potential rescheduling of cannabis to Schedule III of the Controlled Substances Act and Germany&rsquo;s recent decriminalization have ignited optimism within the sector.
Grow Group, a UK-based medical cannabis distributor, is spearheading this movement with a planned Nasdaq IPO in early 2025. CEO Benjamin Langley <a href="https://www.ft.com/content/e5e099b5-d7c9-4281-b370-79cb437459e6">told</a> the Financial Times about the investors&#39; interest in the industry. &ldquo;What we&rsquo;re seeing now, is that loosening up such that people are deploying funds and there is money again in this space,&rdquo; he said.
Somai Pharmaceuticals, a <a href="https://www.benzinga.com/markets/cannabis/23/09/34172404/from-manufacturing-to-market-how-this-eu-pharma-co-fast-tracked-cannabis-production">Portuguese player</a>&nbsp;and UK&#39;s&nbsp;Wellford Medical&nbsp;are also considering Nasdaq listings. &quot;If the US [reclassifies], coupled with the legislative change in Germany, it could be the perfect time for us and&thinsp;.&thinsp;.&thinsp;.&thinsp;investors to catch that sentiment wave,&quot; Wellford&rsquo;s Joshua Roberts <a href="https://www.ft.com/content/e5e099b5-d7c9-4281-b370-79cb437459e6">told </a>Financial Times.
The Drug Enforcement Administration&#39;s proposed rule change to reclassify cannabis could significantly impact the industry by reducing exorbitant taxes, stimulatinig clinical research&nbsp;and potentially unlocking the world&#39;s largest cannabis market.
<h3>Why This Matters</h3>
Listing on Nasdaq offers European cannabis companies significant advantages, especially amid current regulatory shifts. First, it provides access to a broader pool of global investors, while Nasdaq&#39;s stringent regulatory standards enhance company credibility and attract institutional investors. Also, with increased visibility, Nasdaq&rsquo;s market liquidity favors better share trading and valuation. Meanwhile, the anticipated US regulatory easing could further amplify these benefits.
Read Also:&nbsp;<a href="https://www.benzinga.com/markets/cannabis/24/07/39720383/a-2-billion-opportunity-in-cannabis-how-a-tobacco-giant-is-helping-organigram-seize-the-german-mhttps://www.benzinga.com/markets/cannabis/24/07/39720383/a-2-billion-opportunity-in-cannabis-how-a-tobacco-giant-is-helping-organigram-seize-the-german-m">A $2 Billion Opportunity In Cannabis: How A Tobacco Giant Is Helping Organigram Seize The German Market</a>
<h3>Taxes And Rescheduling</h3>
President Joe Biden&#39;s plan to reschedule cannabis from Schedule I to Schedule III promises significant tax benefits for the cannabis industry. This change would alleviate IRS tax code 280e, allowing companies like Curaleaf (OTC: <a class="ticker" href="https://www.benzinga.com/stock/curlf#OTC">CURLF</a>) and Trulieve (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcnnf#OTC">TCNNF</a>) to deduct normal business expenses, potentially saving over a billion dollars in taxes. Pablo Zuanic of Zuanic &amp; Associates suggests these savings could boost cash flows, enabling growth and expansion.
Curaleaf could see a <a href="https://www.benzinga.com/markets/cannabis/24/05/38885460/finally-tax-refunds-these-cannabis-companies-will-get-the-most-money-back-if-rescheduling-happen">92% increase in operating cash flow</a>, while Trulieve&#39;s operational efficiency positions it well for revenue growth from legislative changes in key markets. Analysts believe these tax savings could lead to substantial revaluation and market cap growth by 2030.
<h3>Cannabis Across The Atlantic</h3>
Curaleaf, a leading US cannabis company, has shown significant growth in Europe,<a href="https://www.benzinga.com/markets/cannabis/24/06/39256772/beyond-europe-and-north-america-curaleaf-ceo-on-cannabis-markets-in-australia-new-zealand-and-is"> particularly in Germany</a>. The company&rsquo;s vertical integration and supply chain control have resulted in impressive margins. CEO Boris Jordan <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39609582/europe-is-turning-cash-flow-positive-well-see-what-happens-in-the-u-s-largest-canna">emphasized</a> the importance of US regulatory changes, stating, &quot;We&#39;ll see what happens in the U.S. with rescheduling and make decisions based on that.&quot;
IM Cannabis Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/imcc#NASDAQ">IMCC</a>) is intensifying its focus on the <a href="https://www.benzinga.com/topic/germany-cannabis">German market</a> following recent legalization, enhancing its supply chain with a new EU-GMP supplier. Curaleaf International is also <a href="https://www.benzinga.com/markets/cannabis/24/06/39191054/global-weed-business-flora-buys-australian-vaporizers-as-im-cannabis-doubles-down-on-germany">expanding </a>in the <a href="https://www.benzinga.com/topic/uk-cannabis">UK</a>, Germany, and Poland, aiming to outprice illegal cannabis and navigate regulatory landscapes. Their strategic moves target growth potential in markets where regulatory changes and medical cannabis acceptance are increasing.
InterCure (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/incr#NASDAQ">INCR</a>), a leading seller of pharmaceutical cannabis outside North America, is poised to benefit from the potential rescheduling of cannabis in the U.S. and <a href="https://www.benzinga.com/markets/cannabis/24/05/38994368/asset-light-expansion-into-8b-german-market-adds-potential-to-this-cannabis-stock-on-nasdaq">growing demand in Germany</a>. With experience in Israel, InterCure has a competitive edge and is expected to see significant growth from domestic demand and entry into the German market. The company&#39;s ability to produce high-quality cannabis at scale with minimal additional capital expenditure adds to its strategic value.
Read Next:&nbsp;
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<li><a href="https://www.benzinga.com/markets/cannabis/24/06/39256203/curaleaf-international-is-beating-illicit-cannabis-prices-in-uk-and-germany-whats-next-for-eu-ex">Curaleaf International Is Beating Illicit Cannabis Prices In UK And Germany - What&#39;s Next For EU Expansion?</a></li>
<li>These issues will be a hot topic&nbsp;at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the&nbsp;industry. Hear directly from top executives, investors, advocates, and policymakers.&nbsp;<a href="https://www.eventbrite.com/e/benzinga-capital-conference-cannabis-fall-2024-tickets-858948065787?aff=oddtdtcreator" rel="noreferrer noopener" target="_blank">Get your tickets now</a>&nbsp;before prices go up by following&nbsp;<a href="https://www.eventbrite.com/e/benzinga-capital-conference-cannabis-fall-2024-tickets-858948065787?aff=oddtdtcreator" rel="noreferrer noopener" target="_blank">this link</a>.</li>
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The potential rescheduling of cannabis in the U.S. and the growing demand in Germany positions&nbsp;InterCure (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/incr#NASDAQ">INCR</a>), the leading seller of pharmaceutical cannabis outside North America, to capitalize on these opportunities, according to a recent initiation note by <a href="https://www.benzinga.com/topic/pablo-zuanic">Pablo Zuanic</a> of Zuanic &amp; Associates.
Zuanic highlighted said that &quot;InterCure&#39;s experience in Israel, a market five years ahead of Germany in development, gives it a competitive edge.&quot; He also noted that &quot;down the road, INCR could enter the U.S. market if FDA-approved and controlled pharmaceutical cannabis is <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38905962/cannabis-rescheduling-when-will-it-happen-expert-lays-out-timeline-risks-and-wild-c">federally legalized</a>. In a <a href="https://www.benzinga.com/general/biotech/23/07/33375554/israel-is-a-global-leader-in-cannabis">global industry context</a>, InterCure has strategic value.&quot;
<h3>Market Position And Growth Potential</h3>
InterCure has a significant presence in <a href="https://www.benzinga.com/topic/israel-cannabis">Israel</a>, accounting for 98% of its sales, and is poised for substantial growth due to recent regulatory changes, expected to result in a 2-3x increase in demand.
The company&#39;s expertise in pharmaceutical cannabis positions it as a strategic player in the global market. &quot;InterCure has strategic value with its ability to produce quality flowers at scale under strict GMP standards,&quot; Zuanic wrote.
<h3>Financial Performance</h3>
Despite disruptions caused by the Oct 7 attacks, which led to a 50% drop in 4Q23 sales, InterCure is expected to rebound with double-digit sequential growth throughout 2024.
The company&#39;s southern facility, which was damaged during the <a href="https://www.benzinga.com/markets/cannabis/24/03/37986515/im-cannabis-q4-revenue-gross-profit-drops-due-to-negative-impact-of-israel-hamas-war-sees-german">attacks</a>, is anticipated to resume production by late 3Q24 or early 4Q24. Zuanic projects the company will reach a year-end 2024 sales run rate similar to 3Q23 levels, driven by growing domestic demand and entry into the German market.
The company anticipates higher profit margins, low capex needs, and low debt at 0.17x sales and 1x EBITDA, with potential government compensation of $30-50 million for asset loss and business disruption.
<h3>International Expansion</h3>
InterCure is expanding its footprint beyond Israel; it is preparing&nbsp;to enter the German market by mid-2024, with a local partner assisting with EU GMP and direct <a href="https://www.benzinga.com/markets/cannabis/24/04/38057887/534-revenue-surge-unveiled-by-israeli-cbd-focused-pharma-company-exceeding-expectations">sales to pharmacies. </a>According to Zuanic, InterCure expects&nbsp;it will be able to gain market share from Canadian LPs and Dutch companies by leveraging its experience in Israel.
Pharmaceutical <a href="https://www.benzinga.com/topic/germany-cannabis">cannabis imports in Germany </a>reached 31 tons in CY23, &quot;up 26% year-over-year after 20% growth in CY22 and 70% in CY21,&quot; according to Zuanic. He noted that &quot;about 50% of MMJ imports came from Canada, 14% from Portugal, and 8% each from Denmark and the <a href="https://www.benzinga.com/topic/netherlands-cannabis">Netherlands</a>.&quot;
With MMJ now removed from the narcotics list, Zuanic expects prescribing cannabis&nbsp;to ramp up. He conservatively estimates that &quot;if we assume 1% population penetration by the end of 2025 (and $200/month spent), the market could be at an annual run rate of almost $2 billion.&quot; Furthermore, &quot;if we consider 3-4% penetration, the market could reach $6-8 billion.&quot;
InterCure&#39;s international expansion will mainly involve <a href="https://www.benzinga.com/markets/cannabis/24/03/37535196/israeli-company-reports-record-2023-revenue-wants-to-transition-cannabis-operations-to-third-par">partnerships</a>, keeping additional<a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/10/35299359/high-capex-high-rewards-analyst-looks-at-cannabis-msos-strategies"> capex needs </a>minimal. The company is also negotiating an acquisition in Australia and has a CBD store in Switzerland under the Cookies brand.
<h3>Valuation And Projections</h3>
InterCure&#39;s shares, which have tripled since their November low, are valued at $3.10 as of late May. The market cap stands at $151 million, with an enterprise value of $165 million. Zuanic estimates that the stock could be worth 5x its current value under certain scenarios, driven by <a href="https://www.benzinga.com/markets/cannabis/24/05/38592779/intercure-reports-strong-fy2023-performance-paves-the-way-for-global-expansion">domestic market growth</a> and international opportunities. The base case projection sees the share price reaching $6-9 by December 2025.
To learn more about the cannabis business and how to invest in the sector,&nbsp;don&#39;t miss the opportunity to join us at the&nbsp;<a href="https://www.benzinga.com/events/cannabis-conference/?UTM_source=article" target="_blank">19th Benzinga Cannabis Capital Conference</a>&nbsp;in Chicago this October 8-9. Engage with top executives, investors, policymakers, and advocates to explore the industry&#39;s future. Secure your tickets now before prices increase by following&nbsp;<a href="https://www.eventbrite.com/e/benzinga-capital-conference-cannabis-fall-2024-tickets-858948065787?aff=oddtdtcreator" target="_blank">this link</a>.
<h3>Strategic Value</h3>
InterCure&#39;s strategic value lies in its historical know-how in pharmaceutical cannabis and its ability to produce <a href="https://www.benzinga.com/markets/cannabis/24/04/38030274/this-israeli-cannabis-operator-anticipates-95-4m-in-revenue-despite-gaza-conflict">quality cannabis at lower costs</a> than European and Canadian competitors.
The company operates two production facilities in Israel and has supply agreements with companies in <a href="https://www.benzinga.com/topic/canada-cannabis">Canada</a> and<a href="https://www.benzinga.com/topic/portugal-cannabis"> Portugal</a>, along with a co-packer in Germany.
InterCure&#39;s partnerships with brands like <a href="https://www.benzinga.com/markets/cannabis/23/04/32086503/video-mike-tyson-and-ric-flair-talk-weed-and-psychedelics-i-love-cannabis-because-cannabis-is-wh">Tyson</a>&nbsp;and Humboldt further enhance its position. While international sales currently account for only 2% of revenues, Zuanic is confident in InterCure&#39;s potential to scale globally.
Photo: AI-Generated Image.&nbsp;

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Initiation

Asset-Light Expansion Into $8B German Market Adds Potential To This Cannabis Stock On NASDAQ

<a href="https://www.benzinga.com/markets/cannabis/23/04/31915141/intercure-teams-up-with-tyson-2-0-in-israel-australia-united-kingdom-germany-and-other-eu-countr">InterCure</a> Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INCR#NASDAQ">INCR</a>) achieved significant financial success in FY2023, <a href="https://www.businesswire.com/news/home/20240430357217/en/InterCure-Announces-FY2023-Results-Revenue-of-NIS-356-million-and-Adjusted-EBITDA-of-NIS-61-million">reporting </a>a total revenue of approximately $95.2 million. The company showcased an adjusted EBITDA of around $16.3 million, representing 17% of its total revenues. This performance marks an improvement over the <a href="https://www.benzinga.com/markets/cannabis/24/04/38030274/this-israeli-cannabis-operator-anticipates-95-4m-in-revenue-despite-gaza-conflict">preliminary results</a>, which estimated an adjusted EBITDA of around $13.6 million.
<h2 class="wp-block-heading">Navigating Operational Challenges</h2>
InterCure maintained its profitability streak, ending the third and fourth quarters of 2023 with positive EBITDA and operational profits. The company effectively managed crisis impacts, related to the Gaza conflict, which affected installations. InterCure said that direct and indirect damages will be covered by the government and the Company has already received advanced payments as compensation.&nbsp;
<h2 class="wp-block-heading">Expanding Horizons</h2>
As InterCure gears up to enter the <a href="https://www.benzinga.com/topic/germany-cannabis">German market </a>and keeps an eye on potential changes in U.S. cannabis legislation, CEO Alexander Rabinovitch remains optimistic. &#8220;Despite significant challenges, our consistent performance and strategic initiatives position us well for future expansion,&#8221; said Rabinovitch.
"As the global landscape for pharmaceutical cannabis evolves, we are encouraged by the latest FDA recommendations and the optimistic outlook regarding rescheduling of Cannabis in the U.S. Our leadership in the field, dedication to expanding internationally, enhancing our product offerings, and our focus on adding value for our customers and investors remain pivotal to our ongoing success and growth," Rabinovitch concluded.
<h2 class="wp-block-heading">Key Financial Highlights</h2>
<ul>
<li>Revenue: $95.2 million</li>
<li>Adjusted EBITDA: $16.3 million</li>
<li>Profit from Operations: Positive in Q3 &amp; Q4 2023</li>
<li>Cash on Hand: $29.7 million</li>
<li>Operating Profit (before reductions): $6.95 million </li>
</ul>
DISCLAIMER: Original figures are reported in New Israeli Shekels (NIS) and have been converted to US dollars at an Exchange Rate of 1 NIS = 0.267 USD.

InterCure Reports Strong FY2023: Performance Paves the Way for Global Expansion

InterCure FY23 Revenue NIS356M

InterCure Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INCR#NASDAQ">INCR</a>) (TASE: INCR), an Israeli <a href="https://www.benzinga.com/cannabis">cannabis</a> company doing business as Canndoc, announced its preliminary results on Monday for the full year of 2023.
<h4 class="wp-block-heading">Preliminary H2 2023 Financial Highlights</h4>
<ul>
<li>Revenue is estimated at NIS 140 million ($38.1 million).</li>
<li>Adjusted EBITDA is estimated to reach over NIS 20 million ($5.44 million) and over 14% of revenues.</li>
<li>Both Q3&amp;Q4 ended with positive adjusted EBITDA and profit from operations.</li>
</ul>
<h4 class="wp-block-heading">Preliminary Full Year 2023 Financial Highlights</h4>
<ul>
<li>Annual revenue for 2023 is estimated at NIS 351 million ($95.4 million).</li>
<li>Adjusted EBITDA for 2023 is estimated at over NIS 50 million ($13.6 million).</li>
<li>InterCure expects sequential double digit quarterly growth during 2024.</li>
</ul>
<h3 class="wp-block-heading">Overcoming External Challenges</h3>
The latter half of 2023 was notably impacted by the repercussions of the October 7 <a href="https://www.benzinga.com/news/23/10/35136071/israel-under-siege-unprecedented-hamas-attack-sparks-intense-clashes-netanyahu-says-we-are-at-war" target="_blank" rel="noreferrer noopener">terrorist attack</a> and subsequent attacks in Gaza, adversely affecting operations. Yet, InterCure has been proactive in securing full compensation from Israeli authorities for all direct and indirect damages incurred, receiving tens of millions of shekels in partial advances to date.
The H2 2023 adjusted EBITDA is projected at over NIS 20 million ($5.44 million), aligning with the company&#8217;s enduring profitability streak—now marking the fifteenth consecutive quarter of profit from operations.
Top executives from leading cannabis operators are slated to share valuable insights at the upcoming<a href="https://www.benzinga.com/events/cannabis-conference/"> Benzinga Cannabis Capital Conference</a> in Florida on April 16-17. The two-day event that returns to<a href="https://www.benzinga.com/events/cannabis-conference/"> The Diplomat Beach Resort</a> will be a chance for entrepreneurs, both large and small, to network, learn and grow.
<figure class="wp-block-image alignright size-full is-resized"><img loading="lazy" decoding="async" width="300" height="250" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/01120618/2231044_CCCFloridaGIF_V2_031124-1.gif" alt="" class="wp-image-272157" style="width:206px;height:auto" /></figure>
<h3 class="wp-block-heading">Strategic Growth And Expansion</h3>
InterCure's continued focus on expansion and innovation is evident in its strategic partnerships and product diversification, including an exclusive deal with <a href="https://www.benzinga.com/markets/cannabis/24/03/37743531/exclusive-video-mike-tyson-wants-to-knock-you-out-with-cbn-infused-edibles-on-world-sleep-day">TYSON 2</a><a href="https://www.benzinga.com/markets/cannabis/24/03/37743531/exclusive-video-mike-tyson-wants-to-knock-you-out-with-cbn-infused-edibles-on-world-sleep-day" target="_blank" rel="noreferrer noopener">.</a><a href="https://www.benzinga.com/markets/cannabis/24/03/37743531/exclusive-video-mike-tyson-wants-to-knock-you-out-with-cbn-infused-edibles-on-world-sleep-day">0</a> and the launch of over 40 new GMP SKUs in 2023. The anticipation of entering the German market and expansion of its dedicated medical cannabis pharmacy chain underscores a proactive approach towards global growth and market leadership.
<h3 class="wp-block-heading">CEO Outlook</h3>
&#8220;Facing an unprecedentedly challenging year, InterCure has showcased remarkable resilience and sustained growth, achieving our fifteenth consecutive quarter of profitability. Our continued profit from operations highlights the dedication of our team and the strength of our leading platform. As pharmaceutical cannabis becomes the new global standard, we are encouraged by the FDA's recent recommendations and the potential <a href="https://www.benzinga.com/markets/cannabis/24/03/37989655/dea-comes-out-of-the-shadows-to-ensure-cannabis-rescheduling-process-is-not-being-done-under-shr" target="_blank" rel="noreferrer noopener">rescheduling of Cannabis</a> in the US," stated Alexander Rabinovitch, CEO of InterCure. "Our established leadership, and commitment to global expansion, product portfolio enhancement, and delivering value to our patients and shareholders sets us on a path of continued growth and success.&#8221;
InterCure plans to file its annual report on form 20F by the end of April, which will include its full financial results for the year ended December 31, 2023.
INCR Price Action INCR's shares were trading 0.74% lower at $2.69 per share at the time of this writing around 1:30 PM ET Monday.
There&#8217;s no better time to dive deeper into the ever-changing landscape of cannabis investing. Join us at the upcoming<a href="https://www.benzinga.com/events/cannabis-conference/"> Benzinga Cannabis Capital Conference</a> in Florida at the new Hollywood venue on April 16 and 17, 2024. The two-day event at<a href="https://www.benzinga.com/events/cannabis-conference/"> The Diplomat Beach Resort</a> will be a chance for entrepreneurs, both large and small, to network, learn, and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.<a href="https://www.benzinga.com/events/cannabis-conference/"> Get your tickets now on</a><a href="http://bzcannabis.com/"> bzcannabis.com</a><a href="https://www.benzinga.com/events/cannabis-conference/"> – Prices will increase very soon!</a>

This Israeli Cannabis Operator Anticipates $95.4M In Revenue Despite Gaza Conflict

Guidance

InterCure Announces Preliminary 2023 Revenue Of NIS 351 Million And EBITDA Of Over NIS 50 Million

&nbsp;<a href="https://www.globenewswire.com/Tracker?data=R2x2XFQqhp6d2aNgrN6doroncQ9pIOJ0XlKF0An3UdKq5JcmbK4S3wk1CMex63H_Pb9IUsxWKOEYCDWjTodz6g==" target="_blank">InterCure</a><a href="https://www.globenewswire.com/Tracker?data=4PyvHErYN9rW0FJHk2W8_irJnsEqPFwPUZCKRQPZzulNV6Ez5TWELyghCRSGTGpoQLCxhyFJzHlc_C1_Qkq3QQ==" target="_blank">&nbsp;Ltd</a>. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INCR#NASDAQ">INCR</a>) (TASE: INCR) (dba Canndoc) (&quot;InterCure&quot; or the &quot;Company&quot;), the leading medical cannabis company in Israel and outside of North America, reports today that, further to the Company&#39;s press release issued on October 17, 2023, in which the Company provided an update regarding the status of the security situation in Israel, and its impact on the Company and its employees, the Company is providing an additional update regarding the status of its facility in Kibbutz Nir Oz (the &quot;Southern Israel Site&quot;). 
&nbsp;
Since October 7, 2023, war situation was declared by the Israeli government. As of this date, there is limited access to the Southern Israel Site, and parts of the site are being used by the Israel Defense Forces (the &quot;IDF&quot;), including, among others, the IDF&#39;s medical corps.
The Company has begun the process of restoring the Southern Israel Site, and the restoring efforts are advancing according to its plans. In addition, the Company is working diligently with the Israeli authorities to obtain full compensation for the damages caused by the terrorist attack and the war in Gaza. The Company believes, with high certainty, that it will be entitled for compensation from the Israeli Governmental authorities for all direct and indirect damages suffered, as stated in the Company&#39;s press release issued on October 17, 2023.
With the leadership position in the medical cannabis market and years of operations with the community of Kibbutz Nir-Oz, the Company is committed to restore and further develop the Southern Israel Site. The Company is also committed to support patients&#39; communities especially, patients living in affected and evacuated areas, casualties and IDF veterans. Bringing relief is our mission statement.
Intercure is thankful to its managers and employees for their commitment and to its strategic partners in Israel and worldwide who stand with us in this war time.
The Company intends to file preliminary results for the second half of 2023 and for its full year of 2023 through the beginning of March, and to file its full financial results for 2023 during April 2024.

Global

InterCure Provides An Update Regarding Nir Oz Facility

InterCure Signs Definitive Agreement to Acquire Leon Cannabis Pharmacy Chain; At Closing, InterCure Will Cause Between 1,755,000 To 1,845,000 Shares Of The Company To Be Issued To The Sellers, Depending On The Share Price Of The Company At The Time Of Completion

Legal

InterCure Wins Cannolam Arbitration Proceeding; InterCure Holds 100% Of The Shares In Cannolam; Amount Owed Will Be Determined And Paid As Part Of A Full Separation Process

<a href="https://www.globenewswire.com/Tracker?data=dshZC7Fq14Mvh7p5AqCrDKTzyJp1LGOTEL_Ggud7AdAOoQuC4R8gkZ-j8Vr-p47UUFltGW8qrGDQA0baLyjNgg==">InterCure Ltd</a>. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INCR#NASDAQ">INCR</a>) (TASE: INCR) (dba Canndoc) (&quot;InterCure&quot; or the &quot;Company&quot;), the leading medical cannabis company in Israel and outside of North America, today addressed the status of the security situation in the State of Israel, and its impact on the Company and its employees.
On October 7, 2023, Hamas terrorists infiltrated Israel&rsquo;s southern border (the &ldquo;Israeli Southern Border&rdquo;) from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas also launched extensive rocket attacks on Israeli population and industrial centers located along Israel&rsquo;s border with the Gaza Strip and in other areas within the State of Israel. These attacks resulted in extensive deaths, injuries and kidnapping of civilians and soldiers. Following the attack, Israel&rsquo;s security cabinet declared war against Hamas and a military campaign against these terrorist organizations.
As a Company that chose to establish its main facility in Kibbutz Nir Oz (the &ldquo;Southern Israel Site&rdquo;), approximately 2 kilometers from the Gaza border, we stand united with the Israeli villages and towns bordering the Gaza Strip, all the victims of the terrorist attack, the citizens and the defense forces of our country. We seek to strengthen and embrace all those who need assistance. Together, we will win.
Despite the numerous challenges, the Company&#39;s management, cannabis trading houses, and pharmacies are working diligently to provide the required service to patients, and meet the growing demand for the Company&#39;s products, especially during this difficult period. The Southern Israel Site in Kibbutz Nir Oz, one of the most advanced and largest facilities in Israel and outside North America, encompasses the largest genetic bank and inventory in Israel.

InterCure Provided Update Regarding  Security Situation In Israel

Press Releases

InterCure Congratulates Germany on Cannabis Reform, Expanding its Global Footprint

Opinion

Thinking about buying stock in Braze, Velo3D, InterCure, Equillium, or Bioatla?

InterCure Announces Preliminary Estimated 2023 Revenue of NIS 351 million and EBITDA of over NIS 50 million

InterCure Announces FY2023 Results: Revenue of NIS 356 million and Adjusted EBITDA of NIS 61 million

InterCure to Participate in Canaccord Genuity's 8th Annual Global Cannabis Conference

InterCure Announces Expansion of its Strategic partnership with Cookies to Germany

InterCure Announces First Half of 2024 Results: Revenue of NIS 126 million and Adjusted EBITDA of NIS 21 million

Market Insight: Power Struggle Arises at XTL Biopharmaceuticals: Court Documents Reveal 'The Social Proxy' Founders Fear Collapse Amidst Refusal for Cash Infusion (NASDAQ: XTLB)

InterCure has Secured Funding of NIS 66M to support the recovery of Nir Oz Facility

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