Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 138

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 8
Chunk 138
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ITEM    FINANCIAL  
 8.    INFORMATION.
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A.                   Consolidated               
     Statements and Other Financial Information.
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See “Item 18. Financial Statements.”
 
Legal Proceedings
 
From time to time we may be subject to legal proceedings and claims in the ordinary course of business.
 
We are currently a party to a number of lawsuits in Israel. Summaries of all our ongoing material lawsuits are provided below.
 
Class Action - T.Z. 25114-04-23
 
On April 17, 2023, an application for approval of a class action in Israel was filed against 26 defendants, among them the leading cannabis groups in Israel, including InterCure and three of its subsidiaries (the “Approval Request”). The main claim in the Approval Request is that the medical cannabis companies advertise their medical cannabis products unlawfully. The court was requested in the Approval Request to determine that the representative class will consist of “any consumer of licensed cannabis and any consumer of unlicensed cannabis starting from the year 2020”.
 
The claimed compensation in the Approval Request amounts to NIS 420 million. Additionally, the applicants argue that they are entitled to a monetary reward of NIS 42 million, and that punitive damages amounting to NIS 84 million are also due.
 
In the Approval Request, the applicants argue that the actions of the respondents constitute criminal offenses under the Dangerous Drugs Ordinance [New Version] -1973, and the Prohibition of Advertising and Restriction on the Marketing of Tobacco Products and Smoking, 5743-1983, seemingly making the respondents criminal organizations as defined in the Combating Criminal Organizations Law, 5763-2003. The applicants also claim violations of consumer-business relations contrary to the General Contract Law, Consumer Protection Laws, and unjust enrichment principles. On July 20, 2023, the respondents filed a request to dismiss the Approval Request.
 
On December 11, 2023, a preliminary hearing was held before the court, during which the court addressed all the difficulties arising from the Approval Request.
 
On January 10, 2024, the applicants submitted their responses to the cannabis companies request to dismiss the Approval Request. Likewise, the applicants also submitted to the court a motion seeking amendments to the Approval Request. On February 20, 2024, the cannabis companies responded to the motion to amend the Approval Request and claimed that the court should reject the motion. A pre-trial was scheduled for June 26, 202