Israeli cannabis producer InterCure’s proposed acquisition of rival medical marijuana company Cann Pharmaceutical, also known as Better, was terminated after the companies failed to bridge differences.
Herzliya-based InterCure had announced the proposed transaction, valued at $35 million (44.4 million Canadian dollars), approximately one year ago.
It’s the latest breakup in the cannabis industry and underscores the difficult market conditions facing marijuana companies.
They include a dearth of funding, falling wholesale cannabis prices and macroeconomic headwinds.
In January, U.S. multistate operator Ayr Wellness said it canceled its planned acquisition of Chicago marijuana retailer Dispensary 33, noting the “cannabis market has changed significantly in the 15 months since” the proposed $55 million deal was hammered out.
In a Wednesday news release, InterCure said its plan to purchase Better, based in Tel Aviv, Israel, was terminated because the closing conditions in the original agreement had not been met.
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