Financial Data and Key Metrics Changes - InterCure reported revenue of CAD 25 million for Q3 2021, three times greater than Q3 2020 and up 36% sequentially [25][36] - Adjusted EBITDA for the cannabis sector was CAD 5.7 million, representing 23% of revenue, an increase of 20% compared to CAD 4.7 million in Q2 2021 [42] - The company ended the quarter with a strong cash balance of CAD 85 million, compared to CAD 81 million in Q2 2021 [43] Business Line Data and Key Metrics Changes - The company achieved a monthly dispensing record of 1 tonne of medical cannabis products, capturing approximately 30% market share in the Israeli medical cannabis market [21][70] - Normalized gross margin reached approximately 45%, up from 42.6% in Q2 2021, driven by a better product mix [38] Market Data and Key Metrics Changes - The estimated current run rate of the Israeli market is over 40 tonnes, with a market size nearing CAD 300 million [69] - Domestic demand is met by approximately 30% to 40% through imports, with the remainder supplied by local production [70] Company Strategy and Development Direction - InterCure aims to expand its pharmaceutical-grade leadership globally and duplicate its successful model in new territories with evolving regulations [46] - The company is focused on the consolidation of the international cannabis market and anticipates the legalization of adult-use cannabis as a significant growth opportunity [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued momentum through the remainder of 2021 and into 2022, emphasizing the importance of evolving regulations in Israel and Europe [58] - The company is optimistic about upcoming regulatory changes in Israel, including reforms in medical cannabis licensing and exportation regulations [72] Other Important Information - InterCure's NASDAQ listing is seen as a significant milestone, providing capital for future growth and expanding visibility to US investors [28] - The company acquired Cannomed retail assets, which have seen revenue and profitability increase by over 30% since integration [30] Q&A Session Summary Question: Can you provide numbers around the pathway to fully optimized gross margin? - Management indicated that once fully integrated, gross margins are expected to be above 50% [56] Question: What is the current size of the Israeli market in tonnes and dollars? - The current run rate of the Israeli market is over 40 tonnes, with a market size of nearly CAD 300 million [69] Question: What are the hurdles for enabling remaining pharmacies for medical cannabis dispensing? - The licensing process varies by district, with some pharmacies potentially taking six months while others may take over a year [65]