Israeli medical cannabis company InterCure today announced the expansion of its private placement from $12 million to $17.5 million, ahead of Nasdaq’s dual listing, through a new partner, the WeWork founder Adam Neumann.
Also participated in the round, held at the end of October, the controlling shareholder Alex Rabinovich and billionaire Gary Pagel, the founder of GMF Capital. His capital was estimated by Forbes $1.5 billion. Former Israeli Prime Minister Ehud Barak, who appointment as company chairman at the end of September, led the financing round.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.
According to the company, which has a market value of $110.9 million (NIS 414 million after a surge of more than 1,000% since the beginning of 2018), the share price for the deal is still $1.20 (NIS 4.45), that is 10% lower than the market price, compared with the current share price of $1.32 (NIS 4.95). This is because Neumann joined the offering at the end of October.
Neumann 39, an American-Israeli entrepreneur, will invest in InterCure about $5 million (NIS 18.65 million), in exchange for the company’s shares that will be issued for him. Neumann’s personal wealth is estimated at $2.6 billion. WeWork has a $21 billion company value (2017).
Previously Neumann invested in the Selina chain of hostels, founded by two Israeli entrepreneurs in Panama, which become an international chain. He also invested in another Israel founded company EquityBee, a trading platform supporting high-tech employees seeking to sell their warrants.
InterCure is a biomed investment company. The company acquired the smallest cannabis company out of eight players in the Israeli market. This company sells medical cannabis to patients. In addition, InterCure has been engaged in research, cultivation, growth and marketing of medical cannabis for thousands of patients for a decade, in a variety of labels approved by the Ministry of Health and has collaborations in Israel and abroad.
InterCure also holds 17.25% of Regenera, which is engaged in R&D of innovative treatment methods and is undergoing phase 3 trials in eye disease and phase 2 trials in Alzheimer’s.
The trend of medical cannabis on the Tel Aviv Stock Exchange has been going on for nearly a year, and more than 10 companies enjoying a jump of tens or even hundreds of percent of their price.
Many of the companies depend significantly on the approval of the export of medical cannabis from Israel – a permit that has not yet been granted. Despite the desire of many parties in the government and the Ministries of Health and Finance during the course of the negotiations, there is great doubt regarding the granting of this approval in the future. Prime Minister Benjamin Netanyahu has not yet given his opinion.
