Israeli medical cannabis producer InterCure said it is suing Cann Pharmaceuticals, which does business as Better, over a failed merger.
InterCure’s $35 million all-stock acquisition of Better was announced in February 2022.
However, the deal was terminated this year after a warning from InterCure in November 2022.
In a Tuesday news release, InterCure said the lawsuit intends “to recover funds loaned and invested in the course of their dealings in connection with the merger agreement.”
Herzliya-based InterCure said unspecified “fundamental disagreements arose” during the merger process, “which ultimately led to the termination of the agreement on (Jan. 31), as the closing conditions had not been satisfied prior thereto.”
InterCure added that it lent money to Better during the negotiations, “and also provided funding and cultivation services.”
However, InterCure said Tel Aviv, Israel-headquartered Better has “refused to repay the company,” leading to the lawsuit.
InterCure shares trade as INCR on the Nasdaq and the Tel Aviv Stock Exchange and as INCR.U on the Toronto Stock Exchange.