Ehud Barak’s cannabis company InterCure raises $11 million in private placement

Following the announcement, InterCure’s stock went up 7.76% by market close, Wednesday

The board of directors of biomed and medical cannabis company InterCure Ltd., chaired by former Israeli Prime Minister Ehud Barak, has approved the issuance of NIS 38.1 million (approximately $11 million) of new shares that will amount to 8.3% of its stock in a private placement, the company announced in a filing with the Tel Aviv Stock Exchange Wednesday. Following the announcement, InterCure’s stock went up 7.76% by market close.

 

Controlling stakeholder Alex Rabinovich will pay NIS 15 million (approximately $4.3 million) to maintain control with a 32.91% stake following the placement. Yael Figel, wife of billionaire Gary Figel, will spend NIS 3.5 million (approximately $1 million) to maintain a 16.84% stake. Figel and Rabinovice both paid NIS 4.3 (approximately $1.25) per share, the market close price on Tuesday, while the rest of the investors paid NIS 4.13 (approximately $1.19).

 

Former Israeli prime minister Ehud Barak. Photo: Amit Shaal

Leading the private placement is hedge fund company Noked Capital Ltd., which will pay NIS 10 million (approximately $2.9 million) for a 2.1% stake. Additional investors include Ran Belinkis, the founder of Tel Aviv 24/7 supermarket chain AM:PM, investing NIS 3 million (approximately $870,000) for a 0.64%; Phoenix Insurance Company Ltd., which will pay NIS 2 million (approximately $580,000) of its nostro funds for a 0.42% stake; and Menora Mivtachim Underwriters & Management Ltd., which will pay NIS 1 million (approximately $290,000) for 0.21% of the shares.

 

Barak, who is also chairman of Intercure’s subsidiary Canndoc Ltd., told Calcalist the company is experiencing record orders and supply agreements and is in the midst of an accelerated growth process. Canndoc, one of nine licensed cannabis growers in Israel, accounts for most of Intercure’s activities.

 

InterCure “Private Placement” “Tel Aviv Stock Exchange” Investments