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Intercure Files Lawsuit Against Cann Pharmacuticals to Recover Funds Following Failed Merger NEW YORK, TORONTO, and

Key Takeaway: InterCure Ltd. has initiated a lawsuit against Cann Pharmaceuticals to recover funds following a failed merger agreement. This legal action comes after InterCure provided financial support and services to Cann Pharmaceuticals, which did not meet the conditions necessary to complete the merger. As a result, InterCure seeks to enforce its rights to recover the loans and investments made. Previous disclosures indicated a lack of agreement on key merger terms, leading to the termination of the agreement on January 31, 2023.

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CONCERNS & RISKS

  • InterCure has filed a lawsuit against Cann Pharmaceuticals due to an unresolved financial dispute.
  • The failed merger reflects underlying operational challenges and disagreements between the two companies.
  • Despite attempts to recover loaned funds, Better has refused repayment, forcing legal action.

Full Press Release Details

Files Lawsuit Against Cann Pharmacuticals to Recover Funds Following Failed Merger
YORK, TORONTO, and HERZLIYA, Israel - February 14, 2023 - InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) (dba
Canndoc)("InterCure" or the "Company") the biggest and most profitable cannabis company outside
of north America, announced today that it has filed a lawsuit against Cann Pharmaceuticals Ltd. (dba "Better"), a
company with which it had previously sought to merge, to recover funds loaned and invested in the course of their dealings in connection
with the merger agreement.
Company had previously disclosed the merger with Better and its failure in prior press releases made on February 13, 2022, November
23, 2022, and February 1, 2023.
Company and Better had initially agreed to merge, subject to certain closing conditions, which also included an outside date of January
31, 2023. However, as previously disclosed in the Company's public filings, fundamental disagreements arose, which ultimately led
to the termination of the agreement on the outside date, as the closing conditions had not been satisfied prior thereto.
the negotiations and after the merger agreement was executed, the Company extended loans to Better, and also provided funding and cultivation
services to it, in light of the parties' cooperation.
previously reported, the merger agreement was terminated, leaving the Company to seek to recover the funds it had loaned and extended
to Better. Despite repeated efforts to recover such loans, funding and cultivation services, Better has refused to repay the Company,
leaving it with no choice but to file a lawsuit against Better to enforce its rights to the amounts loaned to Better.
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

Why did InterCure file a lawsuit against Cann Pharmaceuticals?

InterCure filed the lawsuit to recover funds loaned and invested during a failed merger with Cann Pharmaceuticals.

What led to the termination of the merger agreement?

The merger agreement was terminated due to fundamental disagreements and unmet closing conditions by the deadline.

What services did InterCure provide to Better?

InterCure provided loans, funding, and cultivation services to Better during their collaborative efforts.

Has Better repaid the funds loaned by InterCure?

No, Better has refused to repay the funds, prompting InterCure to pursue legal action.

What is InterCure's position in the cannabis industry?

InterCure is the largest licensed cannabis producer in Israel and a leading profitable company outside North America.

Last updated: Feb 14, 2023