InterCure reaches NIS 230M war damage settlement with Israel

InterCure Ltd. (Nasdaq: INCR) has reached a final settlement with the Israeli Tax Authorities and Compensation Fund over indirect damages stemming from the October 7, 2023 attacks, the company announced.

The settlement totals NIS 230 million (approximately $77 million). InterCure's original claim exceeded NIS 300 million (approximately $100 million), and the company had previously received NIS 101 million (approximately $34 million) in advance payments related to the claim.

The October 7 attacks severely damaged Canndoc's main cultivation and production facility at Kibbutz Nir Oz, rendering it inoperable. Canndoc is a wholly owned subsidiary of InterCure and Israel's largest licensed cannabis producer. The loss of the facility affected the company's production capabilities, operations, and financial results.

Since the attacks, InterCure raised over NIS 58 million (approximately $20 million) from major shareholders and a pharmaceutical fund to support recovery efforts. The company said it intends to use the settlement proceeds to accelerate the rehabilitation of the Nir Oz facility and return it to full operations.

InterCure stated that restoring the facility is intended to support its supply capacity for the German medical cannabis market, among other international markets.

"With this settlement now completed, we intend to accelerate the restoration of Nir Oz and return this strategic facility to full operations as soon as practicable, with a particular focus on supporting our ability to supply the growing German medical cannabis market," said Alexander Rabinovitch, Chief Executive Officer and Chairman of InterCure.

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