Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 40

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 3
Chunk 40
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 to the Company’s plans and remain an essential part of its recovery. According to Israeli law, due to the location of the Company’s Southern Facility, the Company is entitled to receive from Israeli authorities’ full compensation for all the direct and indirect damages caused to the Southern Facility by the terrorist attack and the war in Gaza. InterCure’s management and its advisers are working diligently with the Israeli authorities to obtain this full compensation. To date, the Company has already received tens of millions of shekels as advance payments from the Israeli authorities in relation to such compensation. Further, in February 2025, we announced the completion of our recent financing, securing NIS 66 million (approximately $18.2 million) to support the recovery of the Southern Facility. The financing also included the issuance of warrants which may further increase the proceeds up to a total of approximately NIS 107 million (approximately $29.8 million) if fully exercised, to support the post-war expansion of the facility, expected to take place in collaboration with the “Tkumah” administration. The completion of the financing included the receipt of funds under a loan agreement from a leading Israeli bank. 
 
As of the date of this Annual Report, the intensity and duration of Israel’s current war against Hamas and the broader regional conflict is difficult to predict, as are its economic implications on the Company’s business and operations and on Israel’s economy in general. The war has already expanded to additional fronts, including Lebanon, Syria, Iran, and attacks by the Houthis in Yemen, increasing regional instability. If the war continues for a prolonged period or escalates further, our operations may be adversely affected. 
 
Since the commencement of these events, there have been continued hostilities along Israel’s northern border with Lebanon (with the Hezbollah terror organization) and on other fronts from various extremist groups in the region, such as the Houthis in Yemen and various rebel militia groups in Syria and Iraq and Palestinian groups in the West Bank. Israel has carried out a number of targeted strikes on sites belonging to these groups. To Israel’s northern border, Israel has been engaged with Hezbollah in Lebanon, a terrorist organization that has been launching missile, rocket, and shooting attacks against Israeli military sites, troops, and Israeli towns. In response to these attacks, the Israeli army has carried out a number of targeted strikes on sites associated with Hezbollah in Lebanon. As of the end of November 2024, Israel entered into a ceasefire agreement with Hezbollah, but there are no assurances as to whether the agreement will hold or