InterCure Receives Nearly NIS 230 Million Compensation from Israeli Government After War Damage

InterCure, an Israeli cannabis company led by Alexander Rabinovitch, announced it has reached a settlement with the Israeli Tax Authority to receive compensation of NIS 230 million. This follows significant damage to its Nir Oz facility during the Iron Swords war, which was subsequently shut down due to its use by the Israel Defense Forces. The company’s market value stood at NIS 155 million this morning, with its stock surging sharply after the announcement. Despite the rise, the current share price remains about 15% below its pre-war level in early October and approximately 96% lower than its 2019 peak during the cannabis market boom.

InterCure initially sued the state for NIS 300 million, having already received an advance payment of NIS 101 million. Although it received approval to begin restoring the facility a year ago, the company had to raise around NIS 58 million to start rehabilitation due to the delayed compensation. The additional funds from the tax authority are expected to enable the completion of the restoration work. InterCure primarily cultivates cannabis at its Nir Oz plant, imports cannabis into Israel, operates retail cannabis pharmacies, and exports mainly to Germany, though its export business is smaller than its domestic operations.

Before the conflict, InterCure was profitable and a market leader among Israeli cannabis firms, with former chairman Ehud Barak having left the company since. In 2022, it reported a profit of NIS 44 million on revenues of NIS 288 million. The war damage disrupted its expansion plans, causing a loss of NIS 63 million in 2023 despite revenue growth to NIS 356 million. Revenues declined to NIS 236 million in 2024 but rebounded to NIS 270 million in 2025, though losses continued. Cash reserves dropped from NIS 101 million at the end of 2022 to NIS 49 million due to restoration costs and loan repayments. As of the end of 2025, InterCure had current liabilities of NIS 88 million and long-term loans of NIS 59 million.

Looking ahead, InterCure is preparing to enter the expanding U.S. cannabis market, hoping the compensation will allow it to complete its plant restoration, accelerate growth in Israel and Germany, and position itself for the American market. Rabinovitch described the settlement as historic for the global cannabis industry, noting a shift in U.S. federal attitudes toward cannabis. The company believes it is well placed to benefit from potential U.S. regulatory changes allowing medical cannabis sales with insurance coverage. Until then, InterCure aims to boost revenues and return to profitability in its existing markets.

Summary: InterCure, an Israeli cannabis firm, secured nearly NIS 230 million in government compensation for war damage to its Nir Oz facility, prompting a sharp stock rise. The funds will help complete plant restoration, support growth in Israel and Germany, and prepare for entry into the U.S. market amid evolving cannabis regulations.