Well-Positioned for Possible Substantial Market Expansion and Further Positive Free Cash Flow Growth in the Event of Adult-Use Cannabis Reform within the Next 24 Months
NEW YORK and TORONTO and HERZLIYA, Israel, Jan. 26, 2021 /PRNewswire/ -- Subversive Real Estate Acquisition REIT LP (OTCQX: SBVRF; NEO: SVX.U) ("SVX"), a special purpose acquisition company (SPAC), today announced its qualifying transaction to combine with InterCure Ltd. (dba Canndoc) (TASE: INCR), Israels leading cannabis company (the "Transaction"). Canndoc, a wholly owned subsidiary of InterCure Ltd., is Israels largest licensed cannabis producer and one of the first to offer Good Manufacturing Practices (GMP) certified and pharmaceutical-grade medical cannabis products in pharmacies across the country. With the largest distribution network, significant logistical capabilities, and a lucrative vertically integrated strategy, Canndoc is the fastest-growing and most profitable cannabis company in Israel, with a Q4 2020 expected EBITDA annualized run rate of greater than US$10 million and positive free cash flow. Furthermore, we believe that Canndoc is well-positioned to capitalize on the adult-use market in Israel, which is expected to be legalized in 2021 or 2022.