onuma Inthapong/E+ via Getty Images Investing Thesis InterCure (NASDAQ:INCR), a leading pharmaceutical/medical cannabis company based in Israel, and a global leader outside North America, has been hit hard by the Hamas attack and the war that followed and so has its stock. Despite these facts, the company managed to sustain operations and present positive 2023 results; the stock price also started recovering after market overreaction. While having the support of the state of Issael during this diffieult sit ...

Exhibit 99.1 InterCure Announces FY2023 Results: Revenue of NIS 356 million and Adjusted EBITDA of NIS 61 million NEW YORK & HERZLIYA, Israel, April 30, 2024- InterCure Ltd. (NASDAQ: INCR) (TASE: INCR) ("InterCure" or the "Company") today announced results for the full year ending December 31, 2023. All amounts are expressed in New Israeli Shekels (NIS), unless otherwise noted. FY2023 Financial Highlights and Milestones Adjusted EBITDA means EBITDA for the cannabis sector adjusted for changes in the fair va ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________to _____________ OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTIO ...

Morsa Images InterCure Ltd. (NASDAQ:INCR) has surprisingly rallied sharply off the post October 7 lows despite not having access to a prime facility in Israel. The cannabis business likely deserves a better stock valuation, but the dust needs to settle in both the Israel cannabis market and the conflict with Hamas. My investment thesis remains Bullish on the cannabis stock, even after the double off the lows already. Source: Finviz Still Waiting No matter where in the globe, cannabis has constantly been hit ...

Exhibit 99.1 Second Quarter and First Half 2023 Key Financial Highlights Second Quarter and First Half 2023 Key Operating Highlights All amounts are expressed in New Israeli Shekels (NIS) or Canadian Dollar ($). InterCure Announces Record Revenues First Half of 2023 with over 14% growth YOY Achieved record revenues of NIS 209 million ($75 million) for the first half of 2023 Annualized revenue run rate of NIS 417 million ($149 million) Adjusted EBITDA of NIS 30 million ($11 million) Generated NIS 35 million ...

Regulatory Compliance - The medical-use cannabis industry is highly regulated, and compliance with laws and regulations is critical for the company's operations[37]. - The company holds licenses for breeding, cultivating, and distributing pharmaceutical-grade cannabis in Israel, including IMC-GAP, IMC-GMP, IMC-GDP, and IMC-GSP certifications[40]. - Regulatory approvals for import/export permits are essential for the company's strategic partnerships with brands like Tilray and Organigram[45]. - Compliance with evolving regulations is critical, as failure to do so may result in penalties and operational disruptions[73]. - The company is subject to various laws and regulations regarding money laundering, which could disrupt operations and incur significant costs if violated[74]. - The company's ability to conduct cannabis-related activities in Israel is contingent upon compliance with IMCA regulations, which impose strict ownership limits[175]. - Changing laws and regulations may increase compliance costs and create uncertainty, potentially harming business operations[116]. Clinical Trials and Research - The company has received IMCA feasibility approval to initiate nine clinical trials, with one phase 3 clinical trial currently underway[49]. - The company may face significant delays in clinical trials due to COVID-19 challenges, impacting its ability to conduct and complete studies[49]. - Future research and clinical trials may yield negative conclusions regarding the medical benefits of cannabis, impacting product distribution and regulatory approvals[51]. - The company is currently providing products for one active clinical study but does not have ownership of the intellectual property generated from this study[154]. - The company is considering the possibility of canceling its clinical program due to significant delays and changes in market conditions[198]. Financial Performance and Risks - The company has not paid dividends on its ordinary shares, which may affect investor returns unless the securities appreciate in value[36]. - The company is exposed to risks related to currency fluctuations and inflation, which could adversely affect its financial condition[36]. - Increased inflation raises costs for commodities, labor, and materials, potentially impacting financial condition and cash flows[57]. - Recent bank closures have created liquidity risks, which may impair access to working capital and increase financing costs[58]. - Future revenues are difficult to forecast due to the underdeveloped medical-use cannabis market, potentially impacting financial stability[80]. - Additional financing will be necessary for continued business development, and there is no assurance that such financing will be available on favorable terms[111]. - The market price of the company's shares may be volatile due to various factors, including market reactions to operating results and changes in analyst coverage[133]. Operational Challenges - The company may face challenges in attracting and retaining key personnel, which is critical for executing its business strategy[94]. - The company may face challenges in expanding operations to meet demand, which could hinder growth and profitability[110]. - The company faces operational risks that may result from inadequate technology or external events, potentially leading to financial loss or reputational damage[130]. - The company may incur increased costs due to operating as a public company in the U.S.[36]. - The company is exposed to risks of liability due to potential fraudulent or illegal activities by employees and third parties, which could lead to significant financial penalties and reputational damage[95]. Market Conditions and Competition - The medical-use cannabis market's growth is uncertain, and demand projections may prove incorrect, affecting profitability[62]. - Competition in the medical-use cannabis industry is intensifying, with competitors having greater resources and experience[65]. - Economic conditions, including military conflicts and inflation, may adversely affect business operations, sales cycles, and market share[56]. - Political and military instability in Israel may adversely affect the company's results of operations and business prospects[158]. Strategic Partnerships and Expansion - The company plans to expand its international presence, but may face challenges related to import restrictions and production requirements in target markets[72]. - The company aims to expand its global distribution network through joint ventures and partnerships in the European Union and Canada, although no products have been distributed through these partnerships yet[193][194]. - The company has entered into long-term exclusive strategic partnerships with industry leaders such as Tilray, Organigram, Charlotte's Web, and Cookies to enhance its global footprint and access to raw materials[204]. - The company plans to establish distribution channels in fully-regulated markets, including Germany, the UK, and Switzerland, to meet anticipated demand for medical cannabis[215]. Production and Quality Control - The company operates a production facility in Southern Kibbutz with a gross area of 1.7 million square feet, currently producing 7 tons of cannabis annually, with potential to expand to 88 tons per year upon full operational capacity[191]. - The Northern Kibbutz facility has a gross area of 55,000 square feet, capable of producing up to 3 tons of cannabis annually, with an option to expand to 10 tons[192]. - The company has established rigorous cultivation and harvest protocols to ensure consistency, quality, and efficiency as it scales operations globally[206]. - The current product portfolio includes dried inflorescences and liquid oil, with a focus on well-defined cannabinoid profiles[220]. Intellectual Property and Innovation - The company has submitted trademark applications for its brand and logo in multiple jurisdictions, including Israel, Canada, the United States, and EU member states[144]. - The company has obtained protected breeding rights on five unique genetics in Israel and plans to apply for similar rights in other jurisdictions[145]. - The company relies on trade secret protection and confidentiality agreements to safeguard its proprietary technologies and products[146]. - The company may seek to file patent applications in Israel and other countries for its novel technologies, although this process is costly and time-consuming[147]. Leadership and Governance - The CEO, Alexander Rabinovich, holds over 26% of the company's voting power, with insiders collectively owning approximately 28% of the outstanding Ordinary Shares, leading to substantial control over corporate operations[179]. - The concentration of ownership among executives and major shareholders may limit the availability of Ordinary Shares to the public, potentially affecting trading prices[180]. - The company is classified as an emerging growth company and may rely on exemptions from certain disclosure requirements for up to five years or until total annual gross revenue exceeds $1.235 billion[118].

Financial Data and Key Metrics Changes - In 2022, the company achieved record revenues of approximately $150 million, representing a 77% increase compared to $85 million in 2021 [40][42] - Adjusted EBITDA for 2022 was $32 million, or 22% of revenue, compared to $22 million in 2021 [45][40] - Gross margin for 2022 was 41%, down from 44% in 2021, with a gross profit exceeding $60 million [18][40] Business Line Data and Key Metrics Changes - Patient count grew by only 18% in 2022, while the company’s revenue grew by 77%, indicating strong market share growth [5][40] - The company expanded its pharmacy chain to 28 locations, with 20 actively dispensing medical cannabis [42][39] - The company reported a record fourth quarter revenue of $41 million, a 30% increase from the fourth quarter of 2021 [43][40] Market Data and Key Metrics Changes - The Israeli Ministry of Health expects the cannabis market to grow to 85 tons in 2023, up from 49 tons in 2022, marking an expected growth of over 70% [13][37] - The company noted that the market is currently about 70% high-quality products and 30% discounted products, with a trend of struggling companies exiting the market [24][49] Company Strategy and Development Direction - The company aims to expand its international supply chain and has developed two new locations outside Israel, including a Cookies branded shop in Vienna and a pharmacy in London [7][6] - The focus remains on execution, expansion, and building a vertically integrated model centered on high-quality branded products [42][16] - The company plans to launch branded products in Germany and the UK, where prices are significantly higher than in Israel, potentially improving gross profit margins [26][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming prescription reform in Israel, which is expected to eliminate the bottleneck of physician prescribing licenses and significantly increase market access [61][59] - The company is prepared for the anticipated market growth and has scaled up operations and supply agreements with international partners [33][46] - Management acknowledged the current financial weakness in the industry but expects market consolidation and recovery as struggling companies exit [18][31] Other Important Information - The company ended 2022 with $95 million in cash and a solid balance sheet, demonstrating strong cash flow generation [46][40] - Capital expenditures in 2022 totaled $18 million, with expectations for 2023 to be at least 50% lower as the focus shifts to global expansion [20][21] Q&A Session Summary Question: Can you provide insights on the dynamics in the Israeli market? - Management indicated that the market is approximately 70% high-quality and 30% discounted products, with struggling companies affecting prices [24][49] Question: What are the expectations for international progress? - Management noted that while progress has been slow, they are taking careful steps and see Germany as a key target market [28][26] Question: How will the prescription reform impact market access? - The reform will allow any physician under the public health system to prescribe medical cannabis, expected to significantly increase market size [61][59] Question: What is the outlook for gross margins? - Management expects potential recovery in gross margins as the market cleans up and high-quality products are introduced in new territories [50][51] Question: How does the company plan to handle potential market growth? - The company has scaled up operations and signed agreements with third parties to prepare for increased demand [33][46]

InterCure Ltd (NASDAQ:INCR) Q2 2022 Earnings Conference Call August 16, 2022 8:30 AM ET Company Participants Adam Haliva - Communications Officer Alexander Rabinovitch - CEO & Director Amos Cohen - CFO Conference Call Participants Victor Ma - Cowen and Company Pablo Zuanic - Cantor Fitzgerald Yewon Kang - Canaccord Genuity Operator Good day, and thank you for standing by. Welcome to the InterCure Second Quarter 2022 Earnings Call and Webcast. [Operator Instructions]. I would now like to hand the conference ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $34 million, nearly 3 times greater than Q1 2021, with a sequential growth of 9% [10][35] - Adjusted EBITDA for Q1 2022 was $8 million, representing over 100% growth year-over-year, with an EBITDA margin of 24% [11][39] - The company ended Q1 2022 with $91 million in cash, indicating a strong balance sheet [12][40] Business Line Data and Key Metrics Changes - The company achieved record profits before tax of almost $8 million, representing 250% growth year-over-year [11] - Gross margin for Q1 2022 was 41%, down from 44% in 2021, primarily due to expenses related to pharmacies obtaining medical cannabis licenses [36] - Excluding the impact of 9 pharmacies without licenses, gross margin would have been higher than 23% [36] Market Data and Key Metrics Changes - The Israeli market added approximately 3,000 new patients, a 4% growth, bringing the total to over 112,000 subscriptions [21] - The company is seeing demand for its branded products from Germany, the UK, Australia, and other emerging markets, indicating strong international interest [16] Company Strategy and Development Direction - The company is focused on expanding its vertically integrated seed-to-sale model into key territories, including the UK, Germany, Australia, and Austria [19][20] - A strategic partnership with Clever Leaves aims to enhance supply access to several medical cannabis markets, supporting international expansion without heavy infrastructure investment [17][18] - The company plans to launch its first retail location in Vienna and expects to launch branded dispensing operations in the UK, Australia, and Germany throughout 2022 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate new import regulations and maintain quality in local cultivation [45][46] - The company anticipates continued revenue growth throughout 2022, supported by a strong operational track record [41] - Management highlighted the evolving regulatory landscape in Israel and Germany, which could lead to further market opportunities [33] Other Important Information - The company added three new pharmacies to its chain, bringing the total to 22 locations, with 14 actively dispensing medical cannabis [25] - The company is preparing to be the first to register CBD products in Israel, anticipating regulatory changes [28] Q&A Session Summary Question: Impact of domestic medical supply limitations in Israel - Management noted that if new regulations slow or stop imports, prices for high-quality products may increase due to reliance on imports [45] Question: Effects of new import regulations on partnerships - Management stated they are well-prepared to adapt to new regulations and have a strong local cultivation capability [46] Question: Future cash flow and capital needs - Management expects positive cash flow to continue but acknowledges the need for capital expenditures to support growth initiatives [50] Question: Potential for legalization in Germany and investment opportunities - Management believes that markets like Germany will eventually evolve into adult use, and they are focused on building brand equity in the meantime [53]

Regulatory Compliance and Challenges - The company holds licenses for breeding and cultivating pharmaceutical-grade cannabis in Israel, with compliance to IMC-GAP and IMC-GSP standards[42] - The company operates under strict regulatory requirements, which may impact its ability to expand operations and secure necessary permits[50] - The company’s operations are subject to ongoing inspections and compliance assessments by regulatory authorities[43] - The company faces risks related to regulatory changes that could materially impact its business operations and market participation[39] - The company’s pharmacy operations are limited to authorized pharmacies, which may affect future expansion plans[51] - The company may incur increased costs due to compliance with regulations as a public company listed on both Canadian and U.S. exchanges[115] - The company may be classified as a Passive Foreign Investment Company (PFIC) for U.S. tax purposes, which could lead to adverse tax consequences for U.S. shareholders[189] - The company is subject to privacy and information security risks, with potential penalties for breaches of patient health information confidentiality[134] Clinical Trials and Research - The company has received IMCA feasibility approval to initiate nine clinical trials, with one phase 3 clinical trial currently underway[55] - The company has not completed any clinical trials to date, and future trials may be expensive and time-consuming[56] - The company has initiated one phase 3 clinical trial to study the effects of its product on children on the autistic spectrum, with a total of nine trials approved[208] - The company is currently involved in one active clinical study, providing GMP-certified products, but does not own the intellectual property generated from this study[155] - Future studies may not be sponsored by the company, limiting control over design and terms, and ownership of generated intellectual property may remain with the institutions conducting the studies[156] Market Expansion and Distribution - The company has entered into agreements with a licensed producer in Denmark and a distributor in Germany to establish distribution channels for its products in the EU[46] - The company has established a joint venture in Canada for the production and distribution of pharmaceutical-grade cannabis-based products, pending regulatory approvals[47] - The company anticipates beginning exports of pharmaceutical-grade cannabis products once guidelines are finalized by Israeli government agencies[44] - The company plans to expand its operations internationally, exposing it to various political, economic, and legal risks associated with different jurisdictions[67] - The company plans to distribute products globally under the "CANNDOC" brand, manufactured under GMP standards, although distribution through partnerships has not yet commenced due to regulatory requirements[206] - The company has developed a global distribution network and has entered into agreements with licensed producers in Denmark and Germany, as well as a joint venture in Austria[225] Financial Performance and Risks - The company has experienced positive cash flow from operating activities for the years ended December 31, 2021, and December 31, 2020, but had negative cash flow for the year ended December 31, 2019[79] - Revenue growth has been achieved in recent years, but sustaining this growth will depend on factors such as capital availability, regulatory changes, and competition from alternative markets[110] - Additional financing will be required for continued business development, and there is no assurance that such financing will be available on favorable terms[112] - The company may incur significant costs and management resources due to potential product recalls related to contamination or defects[87] - The company may face legal proceedings that could divert management's attention and resources, potentially impacting financial results[140] Competition and Market Position - The company faces competition from licensed producers of pharmaceutical-grade cannabis and cannabis-based products, as well as major pharmaceutical and biotechnology companies, which may have greater financial and operational resources[61] - The company is a pioneer in the production and distribution of pharmaceutical-grade cannabis and cannabis-based products for medical use, with over 13 years of experience in the Israeli market[199] - The company is well-positioned to dominate the recreational cannabis and CBD market in Israel, pending regulatory approval[230] Operational Risks and Management - The company faces operational risks that could result in financial loss, reputational damage, or legal proceedings, and management is focused on minimizing these risks through effective infrastructure and controls[132] - The company is dependent on key inputs such as raw materials and utilities, and any significant interruptions could impair cannabis cultivation[92] - Attracting and retaining skilled personnel is crucial for the company's success, with high demand for qualified individuals in the cannabis industry[94] - The leadership team consists of experienced pioneers in the cannabis space, including a globally recognized expert cultivator, enhancing the company's regulatory compliance capabilities[227] Strategic Partnerships and Alliances - The company has established strategic partnerships with leading industry players, including Tilray and Charlotte's Web, to enhance product sourcing and distribution capabilities[219] - The company relies on joint ventures for production and distribution outside of Israel, facing risks if partners fail to meet their obligations[80] - The company faces challenges in joint ventures due to lack of sole decision-making authority, which may lead to poor or delayed business decisions[81] Infrastructure and Production Capacity - The production facility in Southern Kibbutz has a gross area of 1.7 million square feet, currently utilizing 300,000 square feet to produce 7 tons of cannabis annually, with potential to scale up to 88 tons per year upon full operational capacity[203] - The Northern Kibbutz facility has a gross area of 55,000 square feet, capable of producing up to 3 tons of cannabis annually, with an option to expand to 10 tons[204] - The company has developed a quality management system that meets pharmaceutical-grade production standards while maintaining profitability[228] External Factors and Risks - Political, economic, and military instability in Israel, where the company's operations are based, may adversely affect business results and operations[159] - The Israeli government has previously covered damages from terrorist attacks, but there is no assurance that such coverage will continue or be sufficient[163] - Military service obligations for Israeli citizens, including key employees, may disrupt operations and adversely affect business[164] - The war in Ukraine and related sanctions may adversely affect the company's operations, although it does not rely on materials or revenue from the affected regions[197] - The ongoing COVID-19 pandemic has not yet negatively impacted the demand for medical cannabis products, and the company continues to operate and sell on an ongoing basis[195] - The company is exposed to risks related to the COVID-19 pandemic, including potential disruptions in supply chains and clinical trials[192] Shareholder and Governance Issues - Shareholder rights and responsibilities are governed by Israeli law, which may differ from U.S. corporate governance standards[165] - The CEO holds over 26% of the company's voting power, and insiders collectively hold approximately 28% of the outstanding ordinary shares, leading to substantial control over company operations[183] - The company is classified as a "foreign private issuer," allowing it to follow home country governance practices, which may provide less protection to investors compared to U.S. domestic issuers[122]