IL: Cannabis operator to acquire Better Holdings for $35M

Canndoc has signed a Letter of Intent with Cann Pharmaceutical to acquire Better Holdings, a medical cannabis operator in Israel and Australia. Under the terms of the agreement, InterCure will acquire 100% of Cann’s shares, which includes Better’s operations in Israel and 50% of Cann Pharma’s shares, which owns the commercial rights to develop cannabis-based medical products.

The total consideration will be USD $35 million, which will be payable with Canndoc shares, at the same valuation used in connection with the Transaction. The noted shares will be subject to a three-year lock-up period, where each year up to one-third of the shares will be released from the lockup using a monthly release mechanism. InterCure will also invest up to USD $2.5 million in Better Australia in consideration for an 11% ownership stake with Cann’s shareholders committing to making a parallel investment on the same terms.

"Today’s announcement is a historical milestone in the Israeli cannabis industry as we prepare to add Better, a pioneer of our industry, to the InterCure family,"  Ehud Barak, Canndoc chairman, says. "We believe our combined business strengths and capabilities will help us to connect more effectively with new and existing patients in Israel and internationally."

Once the transaction is completed, InterCure’s portfolio will include additional leading brands, distribution network, and unique partnerships, positioning us to deliver sustainable value for all stakeholders.

Alexander Rabinovitch, Canndoc CEO, said: “Canndoc and Better Holdings’ combined business operations create a new international cannabis industry force that will further accelerate our global expansion plans and opportunities.”