InterCure Ltd. (TASE: INCR-L), whose market cap soared to nearly NIS 1 billion yesterday, announced the postponement of its shareholders' meeting scheduled for today. The meeting was planned for approving an investment in the company and employment terms for its officeholders, including chairperson Ehud Barak and CEO Alex Rabinovich. The reason for the postponement is comments that the Israel Securities Authority insists be included in the summons to the meeting.
InterCure today reported that the revised report in the summons will probably be published next Monday. It will then become clear which items in the original report the Securities Authority wanted revised or clarified.
In recent months, the Securities Authority began intervening in reports to the Tel Aviv Stock Exchange (TASE) by cannabis companies. Significant and complicated reports by leading companies without revisions are rare. The Securities Authority also published a document containing instructions for cannabis investors asking them to take note of matters such as the difference between approval in principle for growing cannabis and actual approval, the fact that some of the companies will be unable to manufacture cannabis under the new regulations (InterCure is one of the companies that will be able to manufacture), the difference between memoranda of understanding for a merger with TASE-listed companies and completion of the deal, etc.
InterCure's shareholders' meeting is aimed at approving an allocation of shares under an agreement signed in December with a group of investors led by billionaire Gary Fegel and including WeWork cofounder Adam Neumann. The investors already made back their investment on paper several times over when the deal was signed. The deal was responsible for a considerable proportion of the rise in InterCure's share price.
The shareholders' meeting is also scheduled to approve options for Barak now worth NIS 35 million on paper, one third of which are exercisable immediately after the allocation.
InterCure completely owns Canndoc, a veteran grower of medical cannabis in Israel. Canndoc recently began initiating similar activity overseas and an increase in its production capacity in Israel in the expectation that exports would be approved. The company also plans to hold a Nasdaq offering within six months.
Published by Globes, Israel business news - en.globes.co.il - on January 31, 2019
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