Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 201

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 18
Chunk 201
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 version), 5733-1973, for the propagation and growing of cannabis plants, and the processing of inflorescence and plants under imc-gap quality conditions, in Canndoc’s growing facility in southern Israel, in a commercial scope of approximately 24,500 plants in parallel, as set forth in the growing license (hereinafter: the “growing license”). In accordance with the standard practice, the license is conditional on completing the construction of a post-harvest processing facility, and receipt of full IMC-GAP certification.
 
On December 24, 2020, Canndoc announced that it had received a permanent license from the medical cannabis unit. During the reporting year of the financial statements, Canndoc has begun commercial growing in the Southern Site. On January 1, 2023, a separate legal entity was established, and from this date, the activity of the Northern Facility is executed under this entity.
 

B.    Contingent
     liabilities
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  1.                                                 On                                             
                July 27, 2022 Cantek Group companies (the “Companies”) filed a request for a        
        debt settlement with their creditors, and for a stay of proceedings order in accordance with
         the Insolvency and Economic Rehabilitation Law, all as a result of large debts accumulated 
                                         by the group of companies.                                 
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On July 31, 2022, the court issued a stay of proceedings order against the Companies and appointed a settlement manager to assist in settling the debts of the Companies. Intercure and Canndoc filed a debt claim against the Companies in September 2022 totaling 3,501,659 NIS, which is secured by a permanent first-degree lien on one of Companies rights on the property pledged to Intercure for the payment of a debt owed to Intercure.
 
A creditors gathering headed by the settlement manager of the Companies was held on November 16, 2022, to approve a proposed debt settlement that had been proposed by the Companies itself, but Intercure objected to the proposed settlement, as it treated the creditors of the entire Companies the same, disregarding the different entities within the Companies, its different creditors and their securities. The proposed settlement would have adversely affected Intercure’s status due to Intercure’s opposition to the proposed settlement, the debt settlement did not pass by the required majority.
 
Upon the failure of the settlement, negotiations between the settlement manager and Intercure were