InterCure Announces Record Third Quarter Financial Results with 3 Times YoY Revenue Growth and 36% QoQ Growth

Fast Income and EBITDA Progress

*Quantities proven are in CAD

Seventh consecutive quarter of excessive double-digit, sequential income development

Annualized revenues run charge of $100 million

Adjusted EBITDA¹ run charge of $23 million

$85 million in money

Income development anticipated to proceed within the 4th quarter and all through 2022

NEW YORK and TORONTO and HERZLIYA, Israel, Nov. 15, 2021 (GLOBE NEWSWIRE) — InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) (dba Canndoc)(“InterCure” or the “Firm”) right now introduced monetary outcomes for the third quarter of 2021 and is happy to supply shareholders with a enterprise replace. All quantities are expressed in Canadian {dollars} ($) or New Israeli Shekels (NIS), until in any other case famous.

Third Quarter 2021 and Current Monetary & Working Highlights

• All-time file quarterly income of $25 million (NIS 62 million), 3 times better than Q3 2020 and up 36% sequentially in comparison with the prior quarter.

• Annualized Income run charge of $100 million (NIS 247 million).

• Normalized² gross margin reached roughly 45% in comparison with 43% within the second quarter of 2021, resulting from first steps of implementing InterCure’s vertically built-in mannequin.

• EBITDA for the third quarter of the Firm’s hashish sector was $6 million (NIS 14 million). This represents an annual run charge of $23 million (NIS 56 million), pushed by income development, enchancment in gross revenue and working revenue.

• Generated $4 million (NIS 10 million) money circulation from operations. Fifth consecutive quarter of optimistic working money circulation.

• $85 million in money (greater than NIS 209 million) as of September 30, 2021.

• Added 3 pharmacies from the Cannomed property acquisition, 2 of that are licensed to dispense medical hashish.

• After the quarter introduced extra 4 medical licensed pharmacy bringing the overall retail location to 20 pharmacies situated in prime and strategic areas throughout Israel, 14 of that are licensed to dispense medical hashish.

• Moreover, through the month of October the Firm reached a file of one Ton of GMP medical hashish merchandise disbursed in a single month. This represents roughly 30% market share of Israel’s medical hashish.

• Through the quarter, InterCure’s CEO bought over 420,000 shares of the Firm’s inventory on the open market, valued at over $3.7 million.

• First firm to fulfill the brand new importation necessities set by the Israeli Medical Hashish Company, generally known as the 109 reg. resume importation from our strategic companions, efficiently landed and launched shipments from Tilray, Organigram and Fotmer Life Sciences.

• Commenced buying and selling on NASDAQ in September beneath the image INCR

• Lastly, put up interval finish InterCure obtained 5.2 million shares again from the sponsor of our SPAC transaction. Based on the settlement the shares had been topic to free forfeiture from the SPAC sponsor based mostly upon share worth goal standards. The return of the shares to the corporate with out price provides a big worth of roughly $56 million by the present share worth to all InterCure’s shareholders.

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¹ _{It is a non-IFRS monetary measure and doesn’t have a standardized that means prescribed by IFRS, please see “Non-IFRS Measures” beneath}
² _{excluding the impression of consolidating the buying and selling home operation acquired final quarter.}

Story continues

“Through the quarter we proceed to execute our worthwhile development technique establishing our management place, attaining new firsts and new data,” stated InterCure’s Chief Government Officer, Alexander Rabinovitch. “These embrace, 7 consecutive quarters of excessive double-digit development and improved profitability, 5 consecutive quarters with optimistic money circulation, crossing the one ton mark in GMP medical hashish merchandise disbursed month-to-month, over 70,000 sufferers served, and attaining an annualized revenues run charge of $100 million, elevated gross income and adjusted EBITDA run charge of $23 million. We count on development to proceed within the fourth quarter and thru 2022 as we are going to proceed specializing in executing our worthwhile development technique constructing lengthy and short-term shareholder worth.”

Amos Cohen, InterCure’s Chief Monetary Officer, added, “With the energy of our steadiness sheet and our strong efficiency together with money circulation technology, we’re effectively positioned to proceed executing and implementing our vertically built-in mannequin, leveraging the inspiration and management we now have constructed to capitalize on world enlargement and consolidation alternatives.”

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Key Q3 2021 Monetary Highlights – Hashish Sector

(In hundreds NIS)

^{1 Gross revenue earlier than impact of honest worth. Normalized, excluding the impression of consolidating the buying and selling home operation acquired final quarter, gross margin reached roughly 45% in comparison with 43% within the second quarter of 2021, resulting from first steps of implementing InterCure’s vertically built-in mannequin.}

^{2 EBITDA adjusted for adjustments within the honest worth of stock, share-based cost expense, impairment losses (and features) on monetary property, non-controlling curiosity and different bills (or revenue). It is a non-IFRS monetary measure and doesn’t have a standardized that means prescribed by IFRS, please see “Non-IFRS Measures” beneath.}

Third Quarter 2021 Outcomes Commentary

The Firm reported third quarter 2021 income of $25 million (NIS 62 million), a rise of 3 times in comparison with income of CAD$9 million (NIS 22 million) within the prior 12 months interval and up 36% sequentially in comparison with the second quarter of 2021. Estimated income represents an annual run charge of $100 million (NIS 247 million).

Income and same-store gross sales development through the third quarter of 2021 displays elevated market share, rising shopper demand for the Firm’s branded merchandise and enlargement of its medical hashish dishing out operations, together with its ‘GIVOL’ pharmacy chain. Additional will increase in EBITDA realized through the quarter mirror InterCure’s execution success.

Laws of adult-use hashish and CBD merchandise in Israel is anticipated to drive additional home demand for the Firm’s merchandise. Complementing this, strong worldwide demand for InterCure’s GMP-branded merchandise and easing regulation in Israel for medical hashish exportation is anticipated to assist the Firm’s world enlargement in worldwide goal markets, together with Europe.

With one of many strongest steadiness sheets within the trade, together with $85 million in money (greater than NIS 209 million) as of September 30, 2021, and a vertically built-in and scalable seed to sale mannequin, the Firm expects to steer market consolidation in medical hashish.

Consolidated Monetary Statements and Administration’s Dialogue and Evaluation

InterCure’s unaudited monetary statements and accompanying notes for the three and nine-month durations ended September 30, 2021 and associated administration’s dialogue and evaluation of economic situation and outcomes of operations (“MD&A”) can be found beneath the Firm’s profile on SEDAR and EDGAR.

Convention Name

The Firm will conduct a convention name on Tuesday, November 16, 2021 at 08:30 a.m. (Jap Time) to assessment the outcomes in addition to present an summary of the Firm’s latest milestones and development technique. To entry the convention name, United States individuals please dial 1-877-705-6003, or for worldwide callers, 1-201-493-6725. A replay will likely be accessible shortly after the decision, United States individuals can entry the replay by dialing 1-844-512-2921, or for worldwide callers, 1-412-317-6671. The passcode for the reside name and the replay is 13725075. The replay will likely be accessible till November 30, 2021.

A reside webcast of the convention name might be accessed on the ‘Occasions and Shows’ part of the InterCure web site at http://www.intercure.co. A web-based archive of the webcast will likely be accessible on the Firm’s web site for 30 days following the decision.

About InterCure (dba Canndoc)

InterCure (dba Canndoc) (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) is the main, worthwhile, and quickest rising hashish firm exterior of North America. Canndoc, a completely owned subsidiary of InterCure, is Israel’s largest licensed hashish producer and one of many first to supply Good Manufacturing Practices (GMP) licensed and pharmaceutical-grade medical hashish merchandise. InterCure leverages its market main distribution community, greatest in school worldwide partnerships and a high-margin vertically built-in “seed-to-sale” mannequin to steer the quickest rising hashish world market exterior of North America.

For extra info, go to: http://www.intercure.co.

To be added to InterCure’s e mail distribution listing, please e mail [email protected] with “InterCure” within the topic.

Non-IFRS Measures

This press launch makes reference to sure non-IFRS monetary measures. Adjusted EBITDA, as outlined by InterCure, means earnings earlier than curiosity, revenue taxes, depreciation, and amortization, adjusted for adjustments within the honest worth of stock, share-based cost expense, impairment losses (and features) on monetary property, non-controlling curiosity and different bills (or revenue). This measure will not be a acknowledged measure beneath IFRS, doesn’t have a standardized that means prescribed by IFRS and is due to this fact unlikely to be akin to related measures introduced by different corporations. InterCure’s methodology of calculating this measure could differ from strategies utilized by different entities and accordingly, this measure will not be akin to equally titled measured utilized by different entities or in different jurisdictions. InterCure makes use of this measure as a result of it believes it offers helpful info to each administration and traders with respect to the working and monetary efficiency of the corporate. A reconciliation of Adjusted EBITDA to an IFRS measure (income), which is included by reference to this press launch, is on the market in InterCure’s MD&A for the interval beneath the heading “Outcomes of Operation”, accessible beneath the Firm’s profile on SEDAR at www.sedar.com.

Ahead-Trying Statements

This press launch could include forward-looking statements. Ahead-looking statements could embrace, however will not be restricted to, statements referring to InterCure’s aims plans and techniques, in addition to statements, aside from historic information, that handle actions, occasions or developments that InterCure intends, expects, initiatives, believes or anticipates will or could happen sooner or later. These statements are sometimes characterised by terminology comparable to “believes,” “hopes,” “could,” “anticipates,” “ought to,” “intends,” “plans,” “will,” “expects,” “estimates,” “initiatives,” “positioned,” “technique” and related expressions and are based mostly on assumptions and assessments made in mild of administration’s expertise and notion of historic developments, present situations, anticipated future developments and different elements believed to be acceptable.. Ahead-looking statements will not be ensures of future efficiency and are topic to dangers and uncertainties that would trigger precise outcomes to vary materially from these expressed or implied in such statements. Many elements may trigger InterCure’s precise actions or outcomes to vary materially from the actions and outcomes anticipated in forward-looking statements, together with, however not restricted to, the next: the Firm’s Q3 2021 income, the success of its world enlargement plans, the anticipated annualized income for 2021, its continued development, the anticipated operations, monetary outcomes enterprise technique, aggressive strengths, targets and enlargement and development plans, enlargement technique to main markets worldwide and the impression of the COVID-19 pandemic. Ahead-looking info is predicated on various assumptions and is topic to various dangers and uncertainties, lots of that are past InterCure’s management, which may trigger precise outcomes and occasions to vary materially from these which might be disclosed in or implied by such forward-looking info. Such dangers and uncertainties embrace, however will not be restricted to: adjustments on the whole financial, enterprise and political situations, adjustments in relevant legal guidelines, the U.S. and Canadian regulatory landscapes and enforcement associated to hashish, adjustments in public opinion and notion of the hashish trade, reliance on the experience and judgment of senior administration, in addition to the elements mentioned beneath the heading “Danger Elements” in Subversive Acquisition LP’s closing lengthy type prospectus dated March 15, 2021, which is on the market on SEDAR at www.sedar.com, and in different filings that InterCure has made and should make with the SEC sooner or later.. The forward-looking statements contained on this press launch are made as of the date of this press launch and mirror InterCure’s present views with respect to future occasions, and InterCure doesn’t undertake and particularly disclaims any obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case.

Contact:

InterCure Ltd.
Amos Cohen, Chief Monetary Officer
[email protected]

KCSA Strategic Communications
Investor and Media Relations
[email protected]

A graph accompanying this announcement is on the market at https://www.globenewswire.com/NewsRoom/AttachmentNg/c3726378-98ec-4198-86c9-f23439992c07