Intercure (Tel Aviv: Anchor) establishes its position as a leading international company in the global cannabis market and executes a strategic move to flood value and accelerate growth and profitability: Intercure reports a merger deal with SPAC traded on the Canadian Stock Exchange (NEO) at a price reflecting a company value of 300 million USD.
Pursuant to the agreement, Intercure entered into a merger transaction with Subversive Real Estate Acquisition REIT LP NSO (NEO: SVX.U), which raised from its investors a total of US $ 225 million which it holds in trust and also entered into agreements with new investors (other than SPAC investors). In order to make a private investment in SPAC in the cumulative amount of US $ 65 million at a share price of US $ 10 per share of SPAC, which represents a value of approximately US $ 300 million to Intercure’s shareholders, the merged company intends to list the company’s shares on the stock exchange. NASDAQ.
Upon completion of the transaction, the merged company’s coffers will have at least US $ 55 million, with the possibility that this amount will increase to a cumulative amount of $ 290 million. Significant capital raising from international investors and the expected listing on the NASDAQ stock exchange will allow the company to expand its investor base, and establish significant growth engines to continue the growth momentum and expand activity.
The merger transaction was unanimously approved by the Audit Committee and the Company’s Board of Directors, and its completion depends on the existence of conditions precedent. The merger transaction is in line with InterCor’s global growth strategy.
Ehud Barak, Chairman of the Board: “I am very pleased with the great progress made in Intercure and Kandok, and I am proud to lead the company in a new and exciting chapter that opens today. As science discovers the medical benefits of the cannabis plant, alongside positive regulatory changes, the cannabis industry is beginning to realize its great commercial potential.
Intercure has invested a great deal of effort and money in building an advanced production system and in contact with leading international factors. Candoc products have become a quality standard in the eyes of tens of thousands of patients. These moves have led to international recognition of the company and its products, as reflected in a series of strategic cooperation agreements we have signed with major international cannabis companies. Kandok has proven that it successfully implements a profitable growth strategy while becoming a leading force in the domestic market. Now, the company is positioned to realize its vision in new markets as well, in light of the scope of its international ties and the expected regulatory changes around the world. “
Alex Rabinowitz, CEO of Intercure and Kendock: “The merger with Subversive is another expression of confidence in Intercure and Kendock. We are joining a strong and proven international management team led by Michael Auerbach, a senior member of the global cannabis industry. Together with the leading companies in the world, we have created a real competitive and quality advantage, along with massive investments in our growth sites in the country, we have also become, among other things, the leading growers and producers of cannabis in Israel. The merger and listing for trading on the world’s leading stock exchanges will ensure our ability to further accelerate our business activities and improve the quality of life of patients in many markets around the world and create value for shareholders. “