InterCure Wins Cannolam Arbitration Proceeding

NEW YORK and HERZLIYA, Israel , Oct. 31, 2023 (GLOBE NEWSWIRE) -- InterCure Ltd. (NASDAQ: INCR) (TASE: INCR) (dba Canndoc) ("InterCure" or the "Company"), the leading medical cannabis company in Israel and outside of North America, reports today that, further to the Company’s press release issued on August 31, 2023, in which the Company reported that the Tel Aviv-Jaffa District Court dismissed the lawsuit that filed against the Company by minority shareholders of its subsidiary, Cannolam Ltd. (“Cannolam”), and the parties agreed on a binding arbitration process (the “Arbitration”), in which the amount owed to the Company and the parties will be determined and paid as part of a full separation process, the Company hereby reports that the Arbitration has been concluded, and the arbitrator has decided in favor of the Company on most of the claims presented to him by the Company, while rejecting almost all of the claims presented by the minority shareholders.

Additionally, the arbitrator determined that Cannolam owes InterCure significant amounts (tens of NIS millions), which InterCure has claimed as part of the Arbitration, in recognition of InterCure's ongoing support to Cannolam. The minority shareholders did not transfer their part of the Cannolam debt owed to InterCure, and as a result, in accordance with the Arbitration decision, their shares in Cannolam were transferred to InterCure.

As a result, as of the date hereof, InterCure now holds 100% of the shares in Cannolam, which has the exclusive right to use the “Cookies” brand in Israel and other territories. Cannolam is the leading pharmacy chain specializing in dispensing pharmaceutical-grade cannabis. It operates under Givol and Cookies branded locations.

The CEO of InterCure, Alexander Rabinovich, commented: "We are pleased to announce the end of the arbitration process and acceptance of InterCure claims. Now, together with Cookies and our international partners, we will continue to develop Cannolam as the leading pharmacy chain for medical cannabis patients in Israel and worldwide. I am proud of our multi religion team of dedicated pharmacists and employees of the Givol chain who determinedly support patient communities across Israel during these challenging war time. Together we will win."