Medical marijuana company Cann Pharmaceutical, also known as Better, filed a countersuit against InterCure and its management team seeking $35 million in damages.
The lawsuit comes about four months after the termination of InterCure’s $35 million proposed acquisition of Better because the Israeli companies failed to bridge differences.
Tel Aviv-based Better claimed in a Wednesday news release announcing its lawsuit that InterCure was “misrepresenting facts,” negotiated in “bad faith” and exerted pressure to transfer commercial materials, thus “damaging production capabilities and harming the company’s customers, assets and means.”
After the deal was terminated, Herzliya-headquartered InterCure filed a lawsuit against Better “to recover funds loaned and invested” related to the merger agreement.
“Despite repeated efforts to recover such loans, funding and cultivation services, Better has refused to repay the company, leaving it with no choice but to file a lawsuit against Better to enforce its rights to the amounts loaned to Better,” InterCure said in a release at the time.
The acquisition, announced in February 2022, was projected to close within a few months.
But in November, InterCure warned of “fundamental disagreements” between the parties, “including open matters which were not concluded at the time of the signing the agreement, in addition to a disconnect between the parties.”
The deal was terminated after both sides failed to reach an agreement by 5 p.m. local time on Jan. 31, 2023, per the closing conditions.
InterCure did not elaborate on the unmet conditions after the deal derailed.