Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 175

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 18
Chunk 175
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 damaged, including its inventory, property, plant and equipment and biological assets. In addition, till the first half of 2024, the Southern Site has been designated by the Israeli authorities as a closed military area and there is a limited access to the site. The Company begun the process of restoring the Southern Site in 2024, and returned to production in July 2024.
 
The Company is working diligently with the Israeli tax authorities to obtain full compensation for the damages caused to the Company. As of December 31 2024, the Company submitted applications to the Israeli tax authorities to receive compensation in the amounts of NIS 243 million for the inventory, biological assets and the impairment of the goodwill, NIS 6 million for the property, plant and equipment and NIS 2 million for loss of profits in the pharmacies.
 
As of the date of approval of the financial statements the Company has received advances in the amount of NIS 81.5 million.
 
The Company believes that it will be entitled to compensation from the Israeli tax authorities for all direct and indirect damages suffered, including loss of profits. See Note 12B(A), Note 19D and Note 25.
 
 
F-14
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Note 1 - General (Cont.)
 

  3.                                                   On                                               
        February 16, 2022, the Company engaged in an agreement with Cann Pharmaceutical Ltd. (“Better”),
                an Israeli medical cannabis multi-national operator known as “Better” to acquire        
                       100% of Better’s shares, which includes “Better’s” unique strains,               
            cultivation site, intellectual property, and commercial operations in Israel as well its    
          international activities, for a purchase price of USD 35 million to be paid with Intercure’s  
            shares at the valuation of USD 10 per share. Regarding the termination of the agreement,    
                                                see Note 16(5).                                         
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  4.                                                   On                                              
            April 26, 2023, a lawsuit was filed against the Company in Tel Aviv-Jaffa District Court   
        in Israel by minority shareholders of Cannolam. The lawsuit relates to disagreements concerning
                   the ongoing management of Cannolam. Regarding the lawsuit, see Note 16(3).          
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C.   Definitions:
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In these consolidated financial statements:
 

  Company      -                                                                   Intercure                                                                 
                                                                                      Ltd.                                                                   
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Group          -   The