InterCure Announces Expansion of its Strategic partnership with Cookies to Germany

Rhea-AI Summary

InterCure (NASDAQ: INCR) has expanded its strategic partnership with Cookies, a globally recognized cannabis brand, to Germany. The agreement allows InterCure to cultivate, manufacture, import, and distribute Cookies' branded products in 8 licensed pharmacies across Germany through Cookies Corners. This expansion follows their existing partnerships in the UK, Austria, and Israel.

InterCure will produce Cookies' products at its EU-GMP manufacturing sites, including future offerings like live resin, live rosin, and vapes. The partnership aims to capitalize on Germany's growing medical cannabis market, which saw a 400% increase in prescriptions from March to June 2024 following the passage of the 'CanG' Cannabis Act.

This collaboration combines Cookies' diverse portfolio of over 70 cannabis cultivars and 2,000 products with InterCure's established presence as a leading vertically integrated medical cannabis company outside North America.

Positive

• Expansion into the German market, a key growth area for medical cannabis in Europe
• Partnership with Cookies, a globally recognized and sought-after cannabis brand
• Access to Cookies' diverse portfolio of over 70 cannabis cultivars and 2,000 products
• Ability to produce and distribute Cookies' products through InterCure's EU-GMP manufacturing sites
• Establishment of 8 licensed Cookies Corners pharmacies across Germany
• Potential to capitalize on the 400% increase in German medical cannabis prescriptions from March to June 2024

Negative

• None.

Insights

Market Research Analyst

The expansion of InterCure's partnership with Cookies into Germany represents a significant move in the European cannabis market. With Germany's recent cannabis reform and the reported 400% increase in medical cannabis prescriptions, this strategic agreement is well-timed. The collaboration leverages InterCure's established infrastructure and Cookies' brand recognition, potentially positioning them as early leaders in the German market.

However, investors should consider that while the growth potential is substantial, the European cannabis market is still evolving. Regulatory changes and market acceptance will be critical factors to watch. The success of this venture will depend on how effectively InterCure can adapt Cookies' retail experience to German consumer preferences and navigate the country's regulatory landscape.

Financial Analyst

This strategic partnership expansion could have positive financial implications for InterCure. By leveraging Cookies' brand and genetics across multiple European markets, InterCure is diversifying its revenue streams and potentially increasing its market share. The agreement to operate 8 Cookies Corners in major German cities provides a clear path for revenue growth.

However, it's important to note that the financial impact will depend on factors such as operational costs, regulatory compliance expenses and market penetration rates. Investors should monitor upcoming financial reports to assess the actual revenue contribution and profitability of this expansion. While promising, it's important to remember that entering new markets often involves significant upfront investments before realizing returns.

Medical Research Analyst

The expansion of InterCure and Cookies' partnership into Germany is significant from a medical perspective. Germany's recent cannabis reform has led to a substantial increase in medical cannabis prescriptions, indicating growing acceptance and demand for cannabinoid therapeutics. InterCure's commitment to EU-GMP standards ensures high-quality, pharma-grade products for patients.

The introduction of Cookies' diverse genetic portfolio, including over 70 proprietary cannabis cultivars, could potentially offer German patients a wider range of treatment options. However, it's important to note that the medical efficacy of these products will need to be demonstrated through rigorous clinical research to gain widespread acceptance in the medical community. Investors should keep an eye on any upcoming clinical trials or research initiatives that could validate the therapeutic benefits of these products in the German market.

InterCure expands its European footprint to launch Cookies Corners licensed pharmacies in Germany alongside differentiated online platforms with the official cookies retail experience, enhancing branded product offerings with the most-recognized global cannabis brand.

NEW YORK & HERZLIYA, Israel--(BUSINESS WIRE)-- InterCure Ltd. (NASDAQ: INCR) (TASE: INCR) (dba Canndoc) ("InterCure" or the "Company"), the leading vertically integrated medical cannabis company outside of North America, is announcing a new strategic agreement with Cookies, the globally recognized cannabis brand, to cultivate, manufacture, import and distribute Cookies’ branded products, produced from its cultivation and manufacturing facilities, initially in 8 licensed branded pharmacies across Germany, through Cookies Corners. This agreement marks an expansion of InterCure and Cookies’ partnership footprint in Europe now covering the UK, Austria, and Germany, alongside strategic collaborations in Israel.

Under the terms of the new agreement, InterCure will cultivate, and manufacture Cookies licensed genetics and products at its global supply chain facilities. InterCure's EU-GMP manufacturing sites will import, register, and produce Cookies-branded products, including future range of next-generation offerings such as live resin and live rosin products and vapes. These products will be dispensed through InterCure's Cookies Corner licensed pharmacies and online platforms, differentiated by the official Cookies retail experience.

This agreement follows the passage of Germany's "CanG" Cannabis Act on April 1st, 2023. Notably, according to a recent report from Bloomwell Group, the number of medical cannabis prescriptions in Germany increased by 400 percent from March to June 2024, highlighting the significant impact of the new legislation on the market.¹

Cookies is globally recognized as one of the most sought-after and best-selling cannabis brands, with a rapidly expanding international presence. Its diverse portfolio, featuring over 70 proprietary cannabis cultivars and more than 2,000 products, has established Cookies’ reputation for delivering premium quality to consumers worldwide. Drawing on the unique Cookies retail experience and cutting-edge genetics, along with InterCure's established reputation as the leading vertically integrated medical cannabis company outside North America operating over 25 pharmaceutical cannabis pharmacies, this partnership is set to deliver cannabinoid therapeutics that meet the most rigorous standards in some of the fastest-growing markets worldwide.

"We are excited to strengthen our partnership with Cookies and extend our reach into Germany, a pivotal market for medical cannabis in Europe," said Alexander Rabinovitch, CEO of InterCure. "This agreement enables us to introduce Cookies' globally renowned retail experience to the fast growing German market through Cookies Corners to be located in 8 major German cities advancing our commitment to providing access to high-quality, pharma-grade cannabis on a global scale. With Germany’s recent Cannabis reform, the European market is on the cusp of significant growth, and we look forward to making one of the world’s leading cannabis brands accessible to patients in Germany, Austria and the UK."

Parker Berling, President of Cookies, commented: "Our partnership with InterCure is opening new doors in Europe, and I’m especially excited to bring Cookies Corners to Germany, for the first time. The momentum around cannabis legalization here is truly groundbreaking and signals a new era for the entire continent. Berner’s connection to Germany goes beyond business—his music found an unexpected audience here, where he had the chance to experience the vibrant culture firsthand. With the UK also playing a pivotal role in the rise of California cannabis, we’re now set to bring our unique genetics and passion for quality to European patients through this collaboration.”

About InterCure (dba Canndoc)

InterCure (dba Canndoc) (NASDAQ: INCR) (TASE: INCR) is the leading, profitable, and fastest growing cannabis company outside of North America. Canndoc, a wholly owned subsidiary of InterCure, is Israel’s largest licensed cannabis producer and one of the first to offer Good Manufacturing Practices (GMP) certified and pharmaceutical-grade medical cannabis products. InterCure leverages its market leading distribution network, best in class international partnerships and a high-margin vertically integrated "seed-to-sale" model to lead the fastest growing cannabis global market outside of North America.

For more information, visit www.intercure.co.

About Cookies

Cookies is the most globally recognized cannabis company; founded in 2010 by Billboard-charting rapper and entrepreneur Berner and Bay Area breeder and cultivator Jai. The company creates game-changing genetics and offers a collection of over 70 proprietary cannabis cultivars and more than 2,000 products. Headquartered in San Francisco, the company is actively involved in advocacy and social impact initiatives to enrich communities disproportionately impacted by the War on Drugs. Cookies opened its first retail store in 2018 in Los Angeles, has since expanded to over 70 retail locations in over 20 markets across 6 countries, and was recently named one of America's Hottest Brands of 2021 by Ad Age; the first cannabis brand to ever receive this accolade.

To learn more about Cookies, visit cookies.co

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements may include, but are not limited to, the Company’s success of its global expansion plans, its expansion strategy to major markets worldwide, statements relating to the security events in Israel, as well as statements, other than historical facts, that address activities, events or developments that InterCure intends, expects, projects, believes or anticipates will or may occur in the future. These statements are often characterized by terminology such as "believes," "hopes," "may," "anticipates," "should," "intends," "plans," "will," "expects," "estimates," "projects," "positioned," "strategy" and similar expressions and are based on assumptions and assessments made in light of management’s experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Many factors could cause InterCure’s actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to, the following: the Company’s success of its global expansion plans, its continued growth, the expected operations, financial results business strategy, competitive strengths, goals and expansion and growth plans, expansion strategy to major markets worldwide, the impact of the COVID-19 pandemic, the impact of the war in Israel and the war in Ukraine and the conditions of the markets generally. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond InterCure’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions, changes in applicable laws, the U.S. regulatory landscapes and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, and reliance on the expertise and judgment of our senior management. More detailed information about the risks and uncertainties affecting us is contained under the heading "Risk Factors" included in the Company's most recent Annual Report on Form 20-F and in other filings that we have made and may make with the Securities and Exchange Commission in the future.

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¹ https://businessofcannabis.com/new-report-on-germanys-medical-cannabis-market-indicates-that-german-market-is-prepared-for-rapid-growth

View source version on businesswire.com: https://www.businesswire.com/news/home/20240828846979/en/

InterCure Ltd.

Amos Cohen, Chief Financial Officer

amos@intercure.co

Source: InterCure

FAQ

What is the new strategic agreement between InterCure (INCR) and Cookies in Germany?

InterCure has partnered with Cookies to cultivate, manufacture, import, and distribute Cookies' branded products in 8 licensed pharmacies across Germany through Cookies Corners. This expands their existing partnership to include Germany alongside the UK, Austria, and Israel.

How many Cookies Corners licensed pharmacies will InterCure (INCR) open in Germany?

InterCure plans to open 8 Cookies Corners licensed pharmacies across major German cities as part of their expansion into the German market.

What products will InterCure (INCR) manufacture and distribute under the Cookies brand in Germany?

InterCure will produce Cookies' licensed genetics and products, including future offerings such as live resin, live rosin products, and vapes, at its EU-GMP manufacturing sites for distribution in Germany.

How has the German medical cannabis market changed since the 'CanG' Cannabis Act?

According to a report from Bloomwell Group, the number of medical cannabis prescriptions in Germany increased by 400% from March to June 2024, following the passage of the 'CanG' Cannabis Act on April 1st, 2023.