Debra Borchardt
InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) has killed its deal with Cann Pharmaceutical Ltd. dated as of February 13, 2022, to buy the company also known as Better. The company announced the acquisition was in trouble in November 2022 and cites fundamental disagreements between the parties. InterCure also said that the closing conditions contained in the agreement were not met and the agreement was terminated.
InterCure said it is owed significant amounts loaned and advanced to Better, and since the Agreement was terminated, it intends to recover said amounts under all legal means available to it.
The deal was expected to close at the end of the third quarter of 2022. At the time, InterCure noted that Better’s leading brand Better was driven by a unique genetic portfolio that was consistently in high demand among medical cannabis patients both in Israel and internationally. At the time InterCure said, “Better’s advanced pesticide-free cultivation methods with both patient health and environmental advantages. Better are pioneers in formulating cannabis into a medical product in Israel and the rest of the world. In clinical research regarding the treatment for refractory epilepsy in children and adolescents who have not responded to pharmacological treatment, patients supplied with Better’s lead therapy strain EP1 had greater efficacy of reducing seizures and less adverse effects as compared to other medical cannabis-based products including Epidiolex.”
In the company’s latest earnings report, however, it didn’t note the amounts forwarded to Better. InterCure reported in November that it had revenue of $39 million (NIS 101 million), which represented a 63% growth from the third quarter of 2021 and represented sequential growth of 6%. It was the eleventh consecutive quarter of growth representing an annualized run rate of over $155 million (Over NIS 402 million). The company also said that its revenue growth was expected to continue in the fourth quarter of 2022. At the time it also said that it was the first company to comply with the new strict 109 import regulations of the Israel Medical Cannabis Agency, resuming the importation of medical cannabis to Israel.
