Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 204

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 18
Chunk 204
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 proceeding. The parties’ agreement to initiate an arbitration procedure was validated by the court.
 
The Company and its related companies submitted a claim for repayment of debts owed by Cannolam to the Company and its related companies in the amount of tens of millions. The minority shareholders filed a counterclaim for repayment of the debts owed by the Company to Cannolam and to themselves. The parties submitted their Statements of defense, and on July 20, 2023, a hearing was held before the arbitrator. Pursuant to the company’s press release filed on October 31, 2023, the arbitration has been concluded and the arbitrator decided in favor of the Company on most of the claims presented to him by the Company, while rejecting almost all of the claims presented by the minority shareholders. Additionally, the arbitrator determined that Cannolam owes Intercure significant amounts (tens of NIS millions), which Intercure has claimed as part of the Arbitration, in recognition of Intercure’s ongoing support of Cannolam. The minority shareholders did not transfer their part of the Cannolam debt owed to Intercure and as a result of such, in accordance with the Arbitration decision, their shares in Cannolam were transferred to InterCure.
 
 
F-49
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Note 16 – Commitments, Charges and Contingent Liabilities (Cont.)
 
However, the minority shareholders claimed that regardless of the fact that they chose not to pay the debts determined by the arbitrator as part of the arbitration and, therefore, according to the agreement each party goes its own way, they are still deserving the sum of NIS 3 million. 
 
As a result, as of September 15 ,2023, the Company hold 100% of the shares in Cannolam and recognized other expenses, net in amount of NIS 2,076 thousand in 2023.
 
On June 5, 2024, the court approved the arbitrator’s award, subject to reducing the amount to be paid to NIS 2.8 million. 
 

  4.                                                     A                                                  
              Statement of claim was filed by Geffen Residence &amp; Renewal (former: Cannomed Medical      
                   Cannabis Industries Ltd.) (“Geffen”) with the Tel-Aviv district court on March           
            6, 2023. According to Geffen, Intercure fundamentally breached the purchase agreement signed    
            between the parties in 2021. It is alleged that