HERZLIYA, Israel - InterCure Ltd. (NASDAQ: INCR) (TASE: INCR), a leading vertically integrated medical cannabis company, has entered into a strategic agreement with the globally recognized cannabis brand Cookies to introduce Cookies Corners in Germany. This collaboration is set to cultivate, manufacture, import, and distribute Cookies branded products in Germany, expanding InterCure's European presence which already includes the UK and Austria.
The partnership, leveraging InterCure's EU-GMP manufacturing sites, will produce Cookies-branded products, including a future range of next-generation offerings. These products will be available through Cookies Corner licensed pharmacies and online platforms, providing the official Cookies retail experience.
This move follows Germany's "CanG" Cannabis Act, which came into effect on April 1st, 2023. A report from the Bloomwell Group indicates a 400 percent increase in medical cannabis prescriptions in Germany from March to June 2024, signifying the market's growth following the legislation.
InterCure's CEO, Alexander Rabinovitch, expressed enthusiasm for the expansion into Germany, a key medical cannabis market in Europe. He highlighted the significance of introducing Cookies' retail experience in Germany through Cookies Corners, which will be located in 8 major German cities.
Parker Berling, President of Cookies, also commented on the partnership, citing the momentum around cannabis legalization in Germany as groundbreaking and indicative of a new era for Europe. He mentioned the cultural connection of Cookies' founder Berner to Germany, adding that the UK's role in the rise of California cannabis is also pivotal.
The press release also outlines InterCure's position as a profitable and fast-growing cannabis company outside North America, with Canndoc, its subsidiary, being Israel's largest licensed cannabis producer. Cookies, on the other hand, is known for its proprietary cannabis cultivars and extensive product range, with over 70 retail locations in 20 markets across 6 countries.
The forward-looking statements in the press release indicate InterCure's global expansion plans and market strategy, subject to risks and uncertainties that could impact actual results.
This article is based on a press release statement, providing a factual overview of the strategic agreement between InterCure and Cookies to expand their cannabis business in Germany.
InvestingPro Insights
As InterCure Ltd. (NASDAQ: INCR) forges ahead with its strategic partnership to introduce Cookies Corners in Germany, it's crucial to understand the company's financial health and market performance. According to InvestingPro data, InterCure currently holds a market capitalization of $96.1 million USD. Despite challenges, the company has shown a significant return over the last week, with a 1-week price total return of 11.23%. This uptick could reflect investor optimism regarding the company's expansion efforts in the European medical cannabis market.
However, InterCure is facing some financial headwinds. The company is not profitable over the last twelve months, with a P/E ratio (adjusted for the last twelve months as of Q4 2023) standing at -12.51. This indicates that investors are currently valuing the company's earnings negatively. Additionally, the company is trading at a high EBITDA valuation multiple, which could suggest that the market is pricing in future growth expectations. This aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year, and it's important to note that InterCure does not pay a dividend to shareholders, potentially affecting its attractiveness to income-focused investors.
For readers interested in a deeper dive into InterCure's financial metrics and strategic position, InvestingPro offers additional tips on the company's performance and prospects. With these insights, investors can better gauge the potential risks and rewards associated with InterCure's market activities and financial standing.
For a comprehensive analysis and more InvestingPro Tips on InterCure, visit https://www.investing.com/pro/INCR, where several additional tips are available to help investors make informed decisions.
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