Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 10

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 3
Chunk 10
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 possible that the medical-use cannabis industry will undergo consolidation, creating larger companies with financial resources, production, manufacturing, distribution and commercialization capabilities and product offerings that are greater than ours. As a result of any of these factors, we may be unsuccessful in conducting our business as we currently envision, or at all.
 
Potential anti-dumping and tariff duties on imports from Canada could increase costs and affect our business
 
There is an ongoing regulatory uncertainty regarding a proposed imposition of anti-dumping duties specifically on medical cannabis products imported from Canada to Israel. On January 18, 2024, we were notified that the Trade Levies Commissioner (the “Commissioner”) of the Israeli Ministry of Economy and Industry had initiated a public investigation into alleged dumping of medical cannabis imports from Canada to Israel. On November 10, 2024, the Commissioner announced a final determination proposing the imposition of a 175% anti-dumping duty on imports of Canadian licensed producers. Following the Commissioner’s determination, in April 2025, the Israeli Minister of Economy and Industry accepted the recommendation to impose the proposed duty. However, on April 24, 2025, the Israeli Minister of Finance submitted a formal objection to the Minister of Economy and Industry regarding the imposition of the duty. On April 29, 2025, the Israeli Minister of Economy and Industry submitted a formal response opposing the Minister of Finance’s position, reaffirming his decision to proceed with the anti-dumping duty process.
 
If imposed, as one of the largest medical cannabis cultivators in Israel, we have the infrastructure and capacity to significantly expand our local cultivation operations, and we are actively pursuing expansion plans to support future demand; however, such duties could still increase the cost of importing medical cannabis from Canada to Israel, which may impact the pricing and competitive dynamics in the Israeli medical cannabis market and could adversely affect certain aspects of our business and results of operations.
 
The legal and illegal use of cannabis for non-medical purposes may have a significant negative effect on the medical-use cannabis industry and our pharmaceutical-grade cannabis business.
 
The jurisdictions in which we plan to operate may legalize the production, manufacturing, distribution and purchase of cannabis for non-medical use. As a result, individuals who currently rely upon the medical-use cannabis market to supply pharmaceutical-grade cannabis and cannabis-based products for their medical treatment may instead seek cannabis and cannabis-based products through alternative-use cannabis markets. In addition, many regulatory regimes permit patients to produce a limited amount of cannabis for their own medical purposes or to designate a person to produce a