Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 4

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 3
Chunk 4
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 two kibbutz entities that have provided their lease to the land as part of the partnership. These leases to the land are subject to regulatory approval.
 
In both our production facilities in northern and southern Israel (the “Northern Facility” and “Southern Facility”, respectively) our partners are Kibbutz entities that were granted a lease for their land by the Israel Land Administration (“Land Administration”). The leases authorize use of the land for agriculture purposes. In order to verify that the Kibbutz does not use the land for other purposes, every partnership needs to be approved in advance and pursuant to Agricultural Settlement Law, must obtain an excessive use permit.
 
We hold such excessive use permits for both facilities, with the one applicable to the Northern Facility valid until December 2027 and the one applicable to the Southern Facility valid until November 2029. We currently believe that those permits will be renewed when they expire. However, the renewal of these permits is subject to approval, which may or may not be granted and may be subject to additional restrictions, in each case, potentially impacting our ability to operate the facilities’ profitably.
 
Since October 7, 2023, Israel has remained in a State of War, as declared by the Israeli government. In October 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets including our Southern Facility, located in Nir Oz that suffered devastating damage. The Southern Facility was designated by the Israeli authorities as a closed military area and has been used by the Israel Defense Forces (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. 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”.
 
Research on the effects of cannabis has been limited and future clinical trials may be expensive, time consuming, uncertain, susceptible to change, delay or termination, and may lead to conclusions that dispute or conflict with our understanding and belief regarding the medical benefits, viability, safety, efficacy and dosing of cannabis.
 
Research regarding the medical benefits, viability