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InterCure Ltd. Secures NIS 66M Funding: Financial Report Insights

$INCR
Form 6-K
Filed on: 2024-12-20
Source
InterCure Ltd. Secures NIS 66M Funding: Financial Report Insights

Here are the key insights extracted from the financial report of InterCure Ltd. (Form 6-K):

  1. Funding Commitments: On December 19, 2024, InterCure secured funding commitments totaling NIS 66 million (approximately USD 18.2 million), which could increase to NIS 107 million (approximately USD 29.8 million).
  2. Private Placement: The funding includes a commitment from certain investors, including the CEO Mr. Alexander Rabinovich and existing shareholders Mr. Yaron Yakobi and Mr. Tzahi Hagag. They will participate in a private placement to purchase 7,349,896 ordinary shares at NIS 4.83 (approximately USD 1.34) per share, which is at a premium to the opening price (NIS 4.81) on the Tel Aviv Stock Exchange on December 16, 2024.
  3. Warrants Issued: The investors will also receive warrants for the purchase of an additional 7,349,896 ordinary shares at an exercise price of NIS 5.70 (approximately USD 1.58), at an 18% premium above the determined opening price. If the warrants are fully exercised, this could raise an additional NIS 77 million (approximately USD 21.5 million).
  4. Loan Agreement: InterCure has secured a binding commitment for a loan of NIS 30 million (approximately USD 8.3 million) from a leading Israeli bank, with a term of up to 24 months. This loan is contingent upon the closing of the private placement.
  5. Shareholder Approval: The private placement is subject to certain closing conditions, including approval from InterCure's shareholders.
  6. Securities Registration: The securities issued in this transaction have not been registered under the Securities Act of 1933, indicating restrictions on their sale in the U.S. unless registered or exempt.
  7. Forward-Looking Statements: The report contains forward-looking statements regarding the company's future performance and expansion plans, which are subject to various risks and uncertainties, including economic conditions and regulatory changes.
  8. No Underwriting: The private placement will occur without an underwriter, placement agent, broker, or dealer.
  9. Press Release: A related press release titled "InterCure has Secured Funding of NIS 66M to support the recovery of Nir Oz Facility" is included as Exhibit 99.1.

This information highlights InterCure's strategic moves to secure financing and indicates both opportunities for growth and associated risks.