Intercure, the largest cannabis producer in Israel, has announced plans to acquire medical cannabis operator Better for $35 million.
The deal, which is expected to be finalized in early Q3 2022 subject to Israel Medical Cannabis Agency (IMCA) approval, will see Intercure obtain Better’s business operations in Israel and abroad , as well as its intellectual property, cultivation site and unique varieties.
Better’s $35 million purchase price will be paid for with Intercure shares at a valuation of $10 per share, subject to a three-year lock-up plan.
Buoyed by last week’s announcement of greater decriminalization of cannabis, Intercure’s stock has soared more than 22% in the past month.
According to Intercure, the transaction will allow it to extend its “global reach and accelerate its international expansion strategy in key global markets”.
Better has two cultivation facilities capable of producing 3 tonnes of medical cannabis per year, which it says it distributes to “tens of thousands” of patients in its two key markets, Israel and Australia.
This will allow Intercure to gain a foothold in another international market, after having announced its intention to expand its activities internationally for the first time in December 2021.
“The combined business operations of InterCure and Better are expected to create a new force in the international cannabis industry that will further accelerate our global expansion plans and opportunities and the consolidation process,” said Alex Rabinovitch, CEO of Intercure. .
“We believe our combined business strengths and capabilities will help us connect more effectively with new and existing patients in Israel and internationally. Once completed, InterCure’s portfolio will include new leading brands, a unique distribution network and partnerships, enabling us to deliver lasting value to all stakeholders. »
Amos Cohen, Chief Financial Officer of Intercure, added, “InterCure continues its growth momentum while leading the consolidation of the medical cannabis market. This acquisition, the first of its kind, is a new step in the implementation of our strategy and strengthens the position of InterCure. »
InterCure has several partnerships with American brands, including Cookies.