Israeli Cannabis Producer InterCure Receives 230 Million Shekel Compensation After Three Years

InterCure, an Israeli cannabis company, saw its stock surge 35% over two days following an announcement of compensation related to damages from the Iron Swords conflict. The company will receive a total of 230 million shekels, with part already paid as an advance. This compensation addresses losses since October 7, when the Israeli military shut down InterCure's main production facility in Nir Oz, disrupting its supply chain.

At the peak of the 2019 cannabis market boom, InterCure was valued near 3 billion shekels, but the sector's decline and the war's impact caused its market value to plummet to under 200 million shekels, a drop of over 95%. The company had filed a historic claim against the state for approximately 300 million shekels in war damages, receiving 101 million shekels in advances before the latest payment of 129 million shekels was completed.

Despite receiving approval to begin physical reconstruction of its Nir Oz plant about a year ago, delays in compensation forced InterCure to raise over 50 million shekels to start rebuilding. The new funds are expected to provide the financial breathing room needed to complete the restoration project.

Looking ahead, InterCure plans not only to restore operations but also to expand internationally, focusing on the rapidly growing German medical cannabis market following regulatory changes there. The company intends to use the compensation and capital raised to accelerate building a new facility near Gaza and to increase production capacity in Israel, aiming to supply the German and other international markets.

Summary: Israeli cannabis firm InterCure receives 230 million shekels in compensation for war-related damages, enabling it to rebuild its Nir Oz plant and expand into Germany's growing medical cannabis market.

Points: - InterCure receives 230 million shekels compensation for war damages after military shutdown of its Nir Oz plant. - The company's stock rose 35% in two days following the compensation announcement. - InterCure's market value fell from 3 billion to under 200 million shekels since 2019 peak. - The company filed a 300 million shekel claim against the state, receiving advances before final payments. - Funds will support rebuilding in Israel and expansion into Germany's medical cannabis market.

Topic: economy israel_relevant: true Entities: {"people":[],"organizations":["InterCure","Israeli military"],"places":["Nir Oz","Germany","Israel"]}