Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 54

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 4
Chunk 54
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 (the “IDF”), including, among others, the IDF Medical Corps. As of the date of this Annual Report, the Company is in the process of restoring the Southern Facility, as part of its war recovery plan. The Company is working with the Israeli authorities to obtain full compensation for the damages caused by the war while continuing the rehabilitation of the site, a process that remains ongoing and essential for its recovery. Our strategic plan not only envisions the restoration of the Southern Facility but also aims to triple its capacity, positioning it to become one of the largest and most advanced medical cannabis cultivation sites in the world.
 
For additional information, see “Item 3.D — Risk Factors — Risks Related to Our Incorporation and Operations in Israel — Conditions in the Middle East and in Israel may harm our operations”.
 

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In the event that the Southern Facility will become fully operational at its maximum capacity and all regulatory approvals are received, full operation of its facility will allow us to produce approximately 88 tons of pharmaceutical-grade cannabis per year in the Southern Facility. In the event that we are able to bring our facilities located in the Southern Facility to their full operational capacity subject to increased demand for our products, finalization of export regulations from Israel and the import regulations to the European Union and other regulatory approvals that are required for the expansion of production. The Company is currently in the initial stages of plans regarding the expansion of our capacity in the Southern Facility.
 
In addition, we also operate the Northern Facility, a production facility with a gross area of 55,000 square feet, which can produce up to three tons of pharmaceutical-grade cannabis per year. We have the option to expand our production area in this facility to a total of approximately 160,000 square feet, which would increase our total production capacity to up to 10 tons of pharmaceutical-grade cannabis per year.
 
In Israel, we distribute our products through licensed retail pharmacy locations, where patients may fill their prescriptions on site or have our products delivered directly to their residence. To diversify and expand our global production and distribution capabilities to meet current and future demand in our target markets, we have entered into agreements to establish joint ventures, supply and distribution arrangements in the European Union and Canada with local producers and distributors that have significant distribution networks. As of the day of this Annual Report, none of our products have been distributed through any of our distribution partnerships. We anticipate that we will be able to commence distributions after meeting local regulatory requirements and desired price range. While some of the distribution agreements we