Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 79

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 4
Chunk 79
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 entity to increase its shares to 51% of all outstanding shares of the joint venture at any time. Operation under the joint venture agreement has not yet begun, and it is subject to the regulatory landscape development, which will allow Canndoc products to be sold in the selected markets. Due to the delays in the progress of the regulatory framework in the Austrian market, the Company anticipates challenges in executing this partnership. The financial macro environment has undergone a significant change, and it remains uncertain whether the Austrian partner will be able to fulfill their financial commitment as per the agreement between the parties.
 
While the original partnership experienced significant delays and setbacks, we are currently reassessing the timing of the Austrian medical cannabis market launch. Accordingly, the agreement with Cookies has been amended and replaced with a new agreement entered into in August 2024, which is similar in structure to the Cookies Corners agreement executed for the German market, as adapted for the UK and Austrian market. The new agreement represents a significant strategic achievement, laying the foundation for the establishment of Cookies Corners licensed pharmacies in Austria and positioning us to capitalize on the anticipated development of the Austrian medical cannabis market. Following the execution of the new agreement, we revised our strategy in Austria and are now exploring the opening of Cookies Corners instead of operating a CBD and accessories store.
 
This new framework strengthens our partnership with Cookies and aligns with our broader strategy to expand our international footprint in key emerging markets.
 

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UK
 
We entered into a multi-year agreement with Cookies under which we expect to establish Cookies stores and medical cannabis pharmacies in Austria and the United Kingdom, subject to local regulations. Following subsequent developments, the agreement with Cookies was amended and replaced with a new agreement in August 2024 similar in structure to the Cookies Corners agreement executed for the German market, and adapted to the UK and Austrian markets. As part of this revised strategy, we are now focusing on establishing Cookies Corners licensed pharmacies in both Austria and the United Kingdom, subject to local regulatory requirements. The opening of our first store in the UK, originally planned for 2024, has been delayed primarily due to local regulatory processes and the impacts of the war in Israel, including damage sustained at our southern facility, which caused operational and logistical delays. We currently anticipate the opening to take place during 2025.
 
In addition, as of the date of this Annual Report, the Company has been conducting advanced negotiations regarding the acquisition of a business operation in the United Kingdom as part of the implementation of the updated Cookies agreement.