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NEW YORK & HERZLIYA, Israel - InterCure Ltd. (NASDAQ:INCR) announced Monday it has entered into a definitive Share Purchase Agreement with Cannasoul R&D Ltd., acquiring a 28% ownership stake in the cannabis research and analytics company.
The agreement includes an exclusive option for InterCure to increase its holdings to 51% within two years. The companies have also signed a Collaboration Agreement to formalize their partnership in research, development, and commercialization of cannabis therapeutics. According to InvestingPro data, InterCure appears undervalued based on its Fair Value assessment, potentially making this strategic acquisition well-timed. The company maintains a "FAIR" overall financial health score despite not being profitable over the last twelve months.
As part of the arrangement, Prof. Dedi Meiri, Founder of Cannasoul and cannabis researcher at the Technion - Israel Institute of Technology, is expected to be appointed as Chairperson of InterCure's Scientific Advisory Board, which will be established by the company's board of directors.
"By combining Cannasoul's established research capabilities with InterCure's pharmaceutical-grade platform and under the scientific advisory of Prof. Meiri, we plan to accelerate the development of next-generation cannabis therapeutics," said Alex Rabinovitch, Chief Executive Officer of InterCure.
The announcement comes as reports indicate the Trump administration is exploring the rescheduling of cannabis from Schedule I to Schedule III, which could potentially create new opportunities for international cannabis companies.
InterCure operates as a cannabis producer outside North America, with its subsidiary Canndoc being Israel's largest licensed cannabis producer offering Good Manufacturing Practices certified products.
The transaction remains subject to customary closing conditions and regulatory approvals, according to the company's press release statement. Despite a year-to-date price decline of 11.95%, the company trades at just 0.59 times book value, suggesting potential value for investors watching this strategic expansion.
In other recent news, InterCure Ltd. has announced an agreement to acquire Botanico Ltd., also known as ISHI, which is a medical cannabis technology and brand company. The acquisition will occur in two phases, with InterCure initially purchasing 50% of ISHI for 2,467,055 ordinary shares. The remaining 50% will be acquired for an additional 2,457,206 shares once ISHI achieves positive operating profitability for three consecutive months or within 24 months of the initial closing. This development comes amid potential U.S. rescheduling of cannabis, which could impact the industry. The phased approach to the acquisition indicates a strategic plan by InterCure to integrate ISHI’s operations gradually. These recent developments highlight InterCure’s efforts to expand its footprint in the cannabis technology sector.
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