Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 1

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 3
Chunk 1
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 if any person acquires, holds, or has control of or direction over more than 4.99%    
    of our outstanding ordinary shares at any time without receiving prior approval from the IMCA, the ordinary shares held by that person  
    in excess of such limit will automatically become dormant shares.                                                                       
●   We                                                                                                                                      
    have not paid dividends on our ordinary shares and, therefore, our investors may not rely on us as a source for any future dividend     
    income.                                                                                                                                 
●   Our                                                                                                                                     
    U.S. shareholders may suffer adverse tax consequences if we are characterized as a passive foreign investment company, for U.S. federal 
    income tax purposes.                                                                                                                    
●   The                                                                                                                                     
    development of and international responses to Russian’s military action against Ukraine commenced in February 2022 may negatively       
    affect our sales and earnings or otherwise have an adverse effect on our operations.                                                    

10
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Risks Related to Our Pharmaceutical-Grade Cannabis Business and the Medical-Use Cannabis Industry
 
The medical-use cannabis industry in Israel and other countries is highly regulated and new laws or regulations, or changes to existing laws or regulations, or changes in their enforcement or application could materially and adversely affect our business.
 
The successful execution of our pharmaceutical-grade cannabis business objectives is contingent upon our compliance with all applicable laws and regulatory requirements in Israel and other jurisdictions, including our ability to obtain all required regulatory approvals for our production and distribution activities involving our pharmaceutical-grade cannabis and cannabis-based products.
 
The administration, application and enforcement of the IMCA regulations or the administration, application and enforcement of the laws of other countries by the appropriate regulators in those countries, on us and our business may significantly delay or impact our ability to participate in the Israeli medical-use cannabis market or medical-use cannabis markets outside of Israel, and to produce and distribute pharmaceutical-grade cannabis and cannabis-based products for medical use.
 
Further, the medical-use cannabis industry is a relatively new industry globally and regulation of cannabis for medical use is likely to evolve significantly. The regulatory authorities in the countries in which we operate through our joint ventures, or to which we may export our pharmaceutical-grade cannabis or cannabis-based products, and those in which we plan to operate in in the future, may change the administration, interpretation or application of applicable regulations or their compliance or enforcement procedures at any time. Any such changes could require us to revise our business operations, including our compliance procedures or planned procedures, requiring us to incur increased costs and expend additional resources. There is no assurance that we will be