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InterCure Announces the Termination of its Acquisition Agreement with Cann Pharmaceutical (dba Better) NEW YORK, TORONTO, and

Key Takeaway: InterCure Ltd. has announced the termination of its acquisition agreement with Cann Pharmaceutical Ltd., known as Better, due to unmet closing conditions. The agreement, initially established on February 13, 2022, was set to finalize by January 31, 2023, but did not meet the conditions required for completion. As a result, InterCure intends to pursue recovery of significant amounts owed by Better, utilizing all legal means available. This development showcases potential challenges in the cannabis sector, highlighting the complexities of mergers and acquisitions in the industry.

Market Sentiment Analysis

POSITIVE FACTORS

  • InterCure is identified as the fastest-growing cannabis company outside North America.
  • The company aims to recover significant amounts owed to it by Better under legal means.

CONCERNS & RISKS

  • The acquisition agreement with Cann Pharmaceutical was terminated due to unmet closing conditions.
  • This termination indicates possible financial instability or unfulfilled expectations surrounding the acquisition process.

Full Press Release Details

Announces the Termination of its Acquisition Agreement with Cann Pharmaceutical (dba Better)
YORK, TORONTO, and HERZLIYA, Israel - February 1, 2023 - InterCure Ltd. (NASDAQ: INCR) (TSX:
INCR.U) (TASE: INCR) (dba Canndoc)("InterCure" or the "Company") announces that, further to the
merger agreement with Cann Pharmaceutical Ltd. ("Better") dated as of February 13, 2022, pursuant to which and subject
to its terms, InterCure was to acquire 100% of the issued and outstanding shares of Better (the "Agreement"), and
further to the Company's press release dated November 23, 2022 regarding the fundamental disagreements between the parties, that
the closing conditions contained in the Agreement were not met and the Agreement was terminated.
accordance with the terms of the Agreement, the Agreement terminates automatically if the closing conditions and the merger are not completed
by 5:00 pm (Israel time) on 31st of January 2023.
and in light of the fact that the closing conditions were not met by such date, the Agreement was automatically terminated.
is owed significant amounts loaned and advanced to Better, and since the Agreement was terminated, it intends to recover said amounts
under all legal means available to it.
InterCure (dba Canndoc)
(dba Canndoc) (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) is the leading, profitable, and fastest growing cannabis company outside of North
America. Canndoc, a wholly owned subsidiary of InterCure, is Israel's largest licensed cannabis producer and one of the first to
offer Good Manufacturing Practices (GMP) certified and pharmaceutical-grade medical cannabis products. InterCure leverages its market
leading distribution network, best in class international partnerships and a high-margin vertically integrated "seed-to-sale"
model to lead the fastest growing cannabis global market outside of North America.
more information, visit: http://www.intercure.co.
press release may contain forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating
to InterCure's ability to recover amounts from Better, as well as statements, other than historical facts, that address activities,
events or developments that InterCure intends, expects, projects, believes or anticipates will or may occur in the future. These statements
are often characterized by terminology such as "believes," "hopes," "may," "anticipates,"
"should," "intends," "plans," "will," "expects," "estimates,"
"projects," "positioned," "strategy" and similar expressions and are based on assumptions and assessments
made in light of management's experience and perception of historical trends, current conditions, expected future developments
and other factors believed to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to
risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Many
factors could cause InterCure's actual activities or results to differ materially from the activities and results anticipated in
forward-looking statements, including, but not limited to the Company's ability to succeed in recovering the amounts owing from
Better. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of
which are beyond InterCure's control, which could cause actual results and events to differ materially from those that are disclosed
in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic,
business and political conditions, changes in applicable laws, the U.S. and Canadian regulatory landscapes and enforcement related to
cannabis, changes in public opinion and perception of the cannabis industry, reliance on the expertise and judgment of senior management,
as well as the factors discussed under the heading "Risk Factors" in InterCure's Annual Information Form dated April
5, 2022, which is available on SEDAR at www.sedar.com, and under the heading "Risk Factors" and "Cautionary Note Regarding
Forward-Looking Statements" in the registration statement on Form 20-F, filed with the Securities Exchange Commission on July 14,
2021, as amended August 3, 2021 and August 18, 2021. InterCure undertakes no obligation to update such forward-looking information, whether
as a result of new information, future events or otherwise, except as expressly required by applicable law.
Cohen, Chief Financial Officer

Frequently Asked Questions

What was the reason for terminating the acquisition of Better?

The acquisition was terminated because the closing conditions were not met by January 31, 2023.

What will InterCure do following the termination of the agreement?

InterCure plans to recover significant amounts owed by Better through legal means.

Which company is InterCure's subsidiary in the cannabis sector?

InterCure's subsidiary in the cannabis sector is Canndoc.

Is InterCure also involved in forward-looking statements?

Yes, InterCure's press release contains forward-looking statements about future activities.

What are the risks associated with InterCure's forward-looking statements?

Risks include changes in economic conditions, regulations, and public perception of cannabis.

Last updated: Feb 1, 2023