InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) (dba Canndoc)(“InterCure” or the “Company”) today announced that it has signed an agreement in which InterCure will purchase strategic assets from Cannomed (TASE: CNMD), an Israel-based company and owner of a pharmacy chain specializing in dispensing medical cannabis.
According to the agreement, the Company will acquire Cannomed’s holdings; 55% of ‘Max Pharm’ (which operates two medical cannabis dispensing pharmacies), 100% of a pharmacy in the process of receiving its license and 51% of ‘Hello Pharm’ a medical cannabis patient support center. The companies will partner in Cannomed innovative e-commerce platform for medical cannabis products. InterCure’s medical pharmacy chain, ‘GIVOL’, will onboard this new platform throughout its various locations, adding a complementary e-commerce operation to GIVOL’s extensive retail footprint. The online platform is expected to go live, pending approvals from applicable Israeli regulatory authorities.
The acquisition expands InterCure’s sales and distribution channels in response to the growing demand for its branded products and the consistent increase in the number of medical cannabis patients in Israel, currently estimated at a growth rate of 4%1 per month.
Cannomed was one of the first Israeli companies to acquire Israeli Medical Cannabis Agency (IMCA) approved pharmacies to meet the growing demand by patients. The acquisition of its dispensing operation is part of InterCure’s growth strategy to further improve sales and profitability, as the Company continues to execute on its consolidation strategy of the Israeli medical cannabis market, which began with its previously announced acquisition of Israeli licensed cannabis producer ‘Better’.
The two companies will also reach a medical cannabis cultivation and importation agreement, in which Cannomed supply medical cannabis for the Company.
“Intercure is further capitalizing on its growth momentum, which is supporting our move of leading the consolidation of the medical cannabis market,” said InterCure CFO, Amos Cohen. “This transaction with Cannomed is another step in the implementation of our strategy and strengthens InterCure’s position.”