Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 205

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 18
Chunk 205
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 Intercure has failed to pay Geffen the full     
          consideration under the agreement. The position of Intercure is that the agreement was breached   
            by Geffen after it gave Intercure false representations under the agreement and did not meet    
             the closing condition that was stipulated in the contract regarding Petach-Tikva pharmacy      
        which did not receive medical cannabis license and accordingly the acquisition was not materialized.
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The Company’s Statement of Defense (“SoD”) was submitted on August 3, 2023, together with the Company’s counterclaim for over NIS 1,000,000. In the counterclaim, the Company argues that Geffen misrepresented the rights of the “Hello Medical” partnership which were acquired by the Company (inter alia, regarding the partnership’s financial status, purpose and the partners’ compensation model). As a result of the mistake and deception the Company received a different asset, a loss-making asset. Hence, the court was asked to correct the omissions were made in relation with the partnership’s rights acquisition, while fully compensating the Company for its damages arising from the acquisition. The Geffen’s Statement of Reply and their Statement of Defense for the counterclaim was submitted on January 22, 2024, and the Company’s Statement of Reply for the counterclaim was submitted in February 2024.
 
 
F-50
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Note 16 – Commitments, Charges and Contingent Liabilities (Cont.)
 
The parties engaged in a mediation process, which did not result in a settlement.
 
A pre-trial hearing was held on October 29, 2024, during which the court scheduled a second pre-trial hearing for June 18, 2025.
   On March 10, 2025, the parties submitted evidence for the main claim and counterclaim, and defense evidence is scheduled to be submitted by May 19, 2025.
 
At this early and preliminary stage of the case, it is not possible to estimate the claim’s chances
 

  5.    5. On April 17, 2023, an application for approval of a class action in Israel was filed against 26 defendants, among them the leading cannabis groups in Israel, including Intercure Ltd. and three of its subsidiaries (“the Approval
                                                                               Request”). The main claim in the Approval Request is that the medical cannabis companies                                                                       
                                                                        advertise their medical cannabis products unlawfully. The court was requested in the Approval Request