Page 1

INTERCURE InterCure Announces Record Third Quarter Financial Results with 3 Times YoY Revenue Growth and 36 % QOQ Growth November 16 , 2021 Seventh consecutive quarter of high double - digit , sequential revenue growth Annualized revenues run rate of $ 100 million Adjusted EBITDA¹ run rate of $ 23 million $ 85 million in cash Revenue growth expected to continue in the 4th quarter and throughout 2022 NEW YORK and TORONTO and HERZLIYA , Israel , Nov. 15 , 2021 ( GLOBE NEWSWIRE ) -- InterCure Ltd. ( NASDAQ : INCR ) ( TSX : INCR.U ) ( TASE : INCR ) ( dba Canndoc ) ( " InterCure " or the " Company " ) today announced financial results for the third quarter of 2021 and is pleased to provide shareholders with a business update . All amounts are expressed in Canadian dollars ( $ ) or New Israeli Shekels ( NIS ) , unless otherwise noted . Third Quarter 2021 and Recent Financial & Operating Highlights Rapid Revenue and EBITDA Growth Rapid Revenue and EBITDA Growth Revi X15 pexp This is a non - IFRS financial measure and does not have a standardized meaning prescribed by IFRS , please see " Non - IFRS Measures " below 2 excluding the impact of consolidating the trading house operation acquired last quarter . Saul X10 - *** * Amounts shown are in CAD • All - time record quarterly revenue of $ 25 million ( NIS 62 million ) , three times greater than Q3 2020 and up 36 % sequentially compared to the prior quarter . • Annualized Revenue run rate of $ 100 million ( NIS 247 million ) . • Normalized² gross margin reached approximately 45 % compared to 43 % in the second quarter of 2021 , due to first steps of implementing InterCure's vertically integrated model . • EBITDA for the third quarter of the Company's cannabis sector was $ 6 million ( NIS 14 million ) . This represents an annual run rate of $ 23 million ( NIS 56 million ) , driven by revenue growth , improvement in gross profit and operating profit . • Generated $ 4 million ( NIS 10 million ) cash flow from operations . Fifth consecutive quarter of positive operating cash flow . • $ 85 million in cash ( more than NIS 209 million ) as of September 30 , 2021 . • Added 3 pharmacies from the Cannomed assets acquisition , 2 of which are licensed to dispense medical cannabis . • After the quarter announced additional 4 medical licensed pharmacy bringing the total retail location to 20 pharmacies located in prime and strategic locations across Israel , 14 of which are licensed to dispense medical cannabis . • Additionally , during the month of October the Company reached a record of one Ton of GMP medical cannabis products dispensed in one month . This represents approximately 30 % market share of Israel's medical cannabis . • During the quarter , InterCure's CEO purchased over 420,000 shares of the Company's stock on the open market , valued at over $ 3.7 million . • First company to meet the new importation requirements set by the Israeli Medical Cannabis Agency , known as the 109 reg . resume importation from our strategic partners , successfully landed and released shipments from Tilray , Organigram and Fotmer Life Sciences . • Commenced trading on NASDAQ in September under the symbol INCR • Finally , post period end InterCure received 5.2 million shares back from the sponsor of our SPAC transaction . According to the agreement the shares were subject to free forfeiture from the SPAC sponsor based upon share price target criteria . The return of the shares to the company without cost adds a significant value of approximately $ 56 million by the current share price to all InterCure's shareholders .