Recent developments include Intercure securing funding to support recovery of its Nir Oz Southern Facility damaged in 2023, filing an SEC report to ensure transparency, and receiving a Nasdaq notification regarding minimum bid price requirements.

• Intercure secured funding to support the recovery of its Nir Oz Southern Facility, which was severely damaged during hostilities in October 2023, indicating ongoing restoration efforts [N1].
• The company filed an SEC report in May 2024 to ensure transparency about its operations and financial condition [N2].
• Intercure received a notification from Nasdaq regarding minimum bid price requirements, highlighting compliance challenges with listing standards [S2].

Intercure's extensive experience and early leadership in the Israeli medical cannabis market position it well to capitalize on expanding regulated markets globally. The company's strategic partnerships with major cannabis brands and its focus on pharmaceutical-grade quality standards could facilitate broader market penetration. Restoration and planned expansion of the Southern Facility could significantly increase production capacity. The growing network of pharmacies and trade houses under its subsidiaries supports diversified distribution channels. Intercure's investments in biomed and research collaborations may create additional strategic value. The company’s efforts to build a recognized global brand and establish distribution in key regulated markets could enhance its market presence.

Intercure faces significant operational risks due to geopolitical instability, exemplified by the damage to its Southern Facility in 2023 and ongoing uncertainties regarding restoration and compensation. Regulatory complexities and delays in obtaining necessary permits for distribution in international markets may hinder growth. The company has reported net losses and faces liquidity constraints, with a cash ratio of 0.35 indicating limited immediate cash coverage of liabilities. Some strategic partnerships have been terminated or remain non-operational, potentially limiting market expansion. Competition from larger, better-resourced companies in the pharmaceutical-grade cannabis sector may challenge Intercure's market share. Delays and uncertainties in clinical trial programs and regulatory changes in key markets add to execution risks.

Intercure's competitive strengths include its pioneering status with over 18 years of experience in medical cannabis production, its compliance with stringent pharmaceutical-grade quality standards (IMCA GMP, IMC-GAP, IMC-GDP), and its established network of subsidiaries operating pharmacies and trade houses. The company’s strategic long-term exclusive partnerships with leading global cannabis brands provide access to raw materials and expanded distribution channels. Its scalable production facilities and proprietary cultivation protocols contribute to operational efficiency and product consistency. Intercure's focus on fully regulated medical cannabis markets and its efforts to build a global brand under the CANNDOC name further support its competitive positioning. The company's experienced management team and ongoing investments in research and development enhance its innovation capabilities within the pharmaceutical-grade cannabis sector.

• Geopolitical and Operational Risks: The Southern Facility suffered devastating damage due to hostilities in Israel in October 2023, leading to operational disruption and uncertainty regarding restoration and compensation from Israeli authorities.
• Regulatory and Market Access Risks: Intercure's ability to distribute products internationally depends on obtaining regulatory approvals in various jurisdictions, which may be delayed or denied, impacting growth plans.
• Financial Risks: The company reported a net loss of 72.8 million ILS for fiscal year 2024 and has liquidity ratios indicating moderate short-term financial stability, which may constrain operational flexibility.
• Competitive Risks: Intercure operates in a competitive market with larger pharmaceutical and cannabis companies that may have greater resources and market presence.
• Partnership and Execution Risks: Some strategic partnerships have been terminated or are not yet operational, which may affect the company's ability to expand its global footprint as planned.

• Intercure Ltd. is an Israeli public corporation incorporated in November 1994, listed on Nasdaq and TASE under the ticker INCR.
• The company is a pioneer in the production, manufacturing, and distribution of pharmaceutical-grade cannabis and cannabis-based products for medical use, operating primarily in Israel.
• Intercure owns 100% of subsidiaries including Canndoc, Pharmazone, Leon Pharm, Cannolam, and others, operating pharmacies and trade houses focused on medical cannabis.
• The company operates two main production facilities in Israel: the Southern Facility in Nir Oz (1.7 million sq ft) and the Northern Facility (55,000 sq ft), with plans to expand capacity significantly.
• The Southern Facility suffered devastating damage in October 2023 due to hostilities in Israel and is undergoing restoration and recovery efforts.
• Intercure distributes products through licensed pharmacies in Israel and operates a chain of 26 private pharmacies across Israel, the UK, and Austria under brands such as Givol, Leon Pharm, Max Pharm, and Cookies.
• The company has entered into long-term exclusive strategic partnerships with industry leaders including Tilray, Organigram, Charlotte's Web, Cookies, Tyson, Binske, and Helios to expand its global footprint and supply chain.
• Intercure's products meet high regulatory standards including IMCA GMP, IMC-GAP, and IMC-GDP certifications, ensuring pharmaceutical-grade quality.
• The company focuses on markets with fully regulated medical-use cannabis regimes, including Israel, the European Union, and Australia, and does not operate in the U.S. due to federal law restrictions.
• Intercure has a biomed investment segment with strategic investments in life sciences and medical innovation, including equity interests in F.O.R.E Biotherapeutics Ltd., Cavnox Ltd., and Cannassol Ltd.
• The company has not completed clinical trials using cannabis products but has received approvals to initiate several clinical trials; however, some trials have been delayed or reconsidered due to COVID-19 and market changes.
• Financial snapshot as of December 31, 2024: Revenue of 238.8 million ILS, net loss of 72.8 million ILS, basic and diluted EPS of -1.48 ILS per share.
• Liquidity ratios as of December 31, 2024: Current ratio of 1.73 and cash ratio of 0.35, with cash and equivalents of approximately 78.3 million ILS and current assets of 391.8 million ILS against current liabilities of 226.8 million ILS.
• The company has faced regulatory and operational challenges including damage to facilities due to regional conflict and ongoing efforts to obtain compensation and restore operations.
• Intercure has recently secured funding to support the recovery of its Nir Oz Southern Facility damaged in 2023 hostilities.
• The company filed an SEC report in May 2024 to ensure transparency about its operations and financial condition.
• Intercure has received a Nasdaq notification regarding minimum bid price requirements, indicating compliance challenges with listing standards.
• The company has terminated some partnerships that no longer align with its strategic objectives and continues to seek new strategic agreements in target markets.
• Intercure's management team is experienced and recognized in the cannabis industry, with a focus on operational efficiency and quality standards.
• The company plans to build a global brand under the CANNDOC name and expand distribution networks in regulated markets, although some partnerships have yet to become operational.