Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 103

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 5
Chunk 103
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 above the opening price of InterCure’s ordinary shares on the Determining Date, which may further increase the proceeds from the Private Placement up to a total of approximately NIS 77 million (approximately $21.5 million) if the Warrants are fully exercised for cash. The consideration for the allocated securities was determined through negotiations between the Company and the Investors, based on the opening share price on the Determining Date. The Private Placement was subject to certain closing conditions, which included the approval of the shareholders of the Company, which was later obtained in February 2025.
 
The Private Placement closed on March 2, 2025. For more information on the Private Placement, please see “Item 7. Major Shareholders and Related Party Transactions”.
 
Recent Developments (January 1, 2025 to April 30, 2025)
 
On February 12, 2025, we announced that Mr. Ehud Barak will step down as Chairman of the Board, effective February 13, 2025, and will be succeeded by Mr. Alexander Rabinovich who has successfully led the Company as Chief Executive Officer for the past five years.
 
The Company further announced on February 12, 2025 the completion of the Loan and Private Placement, with the closing of the Private Placement taking place on March 2, 2025.
 
Goodwill impairment
 
The recoverable amount of the cash-generating unit as of December 31, 2024 was based on its value in use and was determined by discounting the future cash flows to be generated from the continuing use of the unit with the assistance of independent valuers.
 
The test results indicated that the recoverable amount of the cash-generating unit exceeds its carrying amount. Therefore, no additional impairment loss was recognized in 2024.The recoverable amount of the cash-generating unit as of December 31, 2023 was based on its value in use and was determined by discounting the future cash flows to be generated from the continuing use of the unit with the assistance of independent valuers.
 
The carrying amount of the unit was determined to be higher than its recoverable amount of NIS 392 million and an impairment loss of NIS 63 million was recognized in 2023. The impairment loss was allocated fully to goodwill and is included in other expenses, net.
 
Key assumptions used in calculation of recoverable amount
 
Discount rate: The after-tax discount rate in 2024 was 15.25% (