NEW YORK and HERZLIYA, Israel - InterCure Ltd. (NASDAQ: INCR) (TASE: INCR), also known as Canndoc, has announced the successful acquisition of funding commitments totaling NIS 66 million (approximately USD 18.2 million), with potential to increase to NIS 107 million (approximately USD 29.8 million). According to InvestingPro data, the company, currently valued at $63.74M, is trading at $1.34 per share, showing signs of being slightly undervalued based on InvestingPro's Fair Value analysis. This funding is intended to aid the recovery and expansion of its Southern Facility at Kibbutz Nir Oz, which suffered war-related damages.
The investment includes a private placement where CEO Alexander Rabinovich and shareholders Yaron Yakobi and Tzahi Hagag will increase their stakes in the company, each holding over 5% of the issued and outstanding share capital. The private placement will issue ordinary shares at a price above the opening price on the Tel Aviv Stock Exchange as of Monday, December 16, 2024, with additional warrants that could raise proceeds up to NIS 77 million (approximately USD 21.5 million) if fully exercised.
Furthermore, a leading Israeli bank has committed to a loan of NIS 30 million (approximately USD 8.3 million) to InterCure, contingent on the closing of the private placement and other conditions.
The funding aims to facilitate the completion of post-war recovery, allowing the company to resume profitable growth and expand its international operations in markets such as Germany, the UK, and Australia. InterCure expects to receive further compensation from Israeli authorities for war-related damages, including lost profits. InvestingPro analysis reveals the company faces challenges, with revenue declining by 34.26% in the last twelve months and currently operating at a loss. The platform offers 12 additional exclusive insights about InterCure's financial health and growth prospects.
The company's global growth strategy includes doubling production capacity in Israel and improving its product portfolio with advanced technologies. This strategy is aligned with development plans in collaboration with the "Tkumah" administration and other authorities in Israel to support the area surrounding the Gaza strip post-conflict.
InterCure anticipates that the funding will enable a return to pre-war growth and profitability rates during the year 2025. The company is recognized for its GMP certified medical cannabis products and has positioned itself as a leading cannabis company outside of North America. With a current ratio of 1.78 and an overall Financial Health Score of "FAIR" according to InvestingPro, investors seeking deeper insights into InterCure's recovery potential can access comprehensive financial analysis and exclusive ProTips through an InvestingPro subscription.
The press release clarifies that this announcement is not an offer to sell securities and is based on a press release statement. It reflects the company's forward-looking statements, which involve risks and uncertainties that could cause actual results to differ from those projected.
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