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

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 3
Chunk 25
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 strain on our management personnel and will likely require us to recruit additional management personnel, and there is no assurance that we will be able to do so.
 
We may be unable to expand our operations quickly enough to meet demand or manage our operations beyond their current scale.
 
There can be no assurance that we will be able to manage effectively our expanding operations, which may include increasing our production capabilities, adding manufacturing capabilities, adding distribution channels and entering into joint ventures or partnerships. We may be unable to sustain growth, and such growth, if achieved, may not result in profitable operations. We may be unable to attract and retain the management personnel necessary for continued growth or we may not be successful in our strategic investments in joint ventures or acquisitions.
 
We may not be able to secure adequate or reliable sources of the funding required to operate our business or increase our production to meet patient demand for our products.
 
The continued development of our business will require additional financing, and there is no assurance that we will obtain the financing necessary to be able to achieve our business objectives. Our ability to obtain additional financing will depend on investor demand, our performance and reputation, market conditions and other factors. Our inability to raise such capital could result in the delay or indefinite postponement of our current business objectives or in our inability to continue to carry on our business. Although we recently completed a financing of approximately NIS 66 million (approximately $18.2 million) through equity and debt, there can be no assurance that additional capital or other types of financing will be available if needed or that, if available, the terms of such financing will be favorable to us.
 
In addition, from time to time, we may enter into transactions to acquire assets or the capital stock or other interests of other entities. Our continued growth has been, including NIS 30 million (approximately $8.3 million) of our recent financing, and may continue to be financed with debt, which may increase our debt levels above industry standards. Any debt financing secured in the future could involve restrictive covenants relating to capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions. Debt financings may also contain provisions that, if breached, may entitle lenders or their agents to accelerate repayment of loans, and there is no assurance that we would be able to repay such loans in such an event or prevent the enforcement of security granted pursuant to any such debt financing.
 
We incur increased costs as a result