Business Archives - Green Market Report

Debra BorchardtMarch 29, 2023

IM Cannabis Corp. (NASDAQ: IMCC) (CSE: IMCC) announced its financial results for the fourth quarter and full year ended December 31, 2022. Revenues for IM Cannabis in the fourth quarter increased 46% to $14.5 million versus $9.9 million in the same time period in 2021. The company said that the increase in revenues was primarily attributed to the increase in the quantity of medical cannabis products sold.

In addition, the increase was due to a higher average selling price per gram that the company realized from its portfolio of premium branded cannabis products in Israel. Losses in the quarter increased to $10.7 million versus last year’s loss of $8.7 million.

For the full year 2022 revenue increased 60% to $54.3 million versus $34.1 million in 2021. The company reported a loss in 2022 of $30.8 million versus 2021’s loss of $23 million.

“The fourth quarter marked another pivotal moment on our trajectory to growth and profitability,” said Oren Shuster, Chief Executive Officer of IMC. “By commencing our exit from Canada, and the restructuring initiatives announced a few weeks back, we will be able to better focus our resources on growth opportunities in Israel, Germany and elsewhere in Europe. We are determined to continue with our strategic plan by maximizing efficiencies to create a leaner and more flexible organization to better suit the current market environment and our short- to mid-term objectives. We will continue building on the increasing demand and positive momentum in Israel and Germany, supported by strategic alliances with Canadian suppliers and a highly skilled sourcing team, to cement our leadership position in the markets we operate in.”

Cash Burn

IM Cannabis reported that it ended the year with cash and cash equivalents of $2.4 million, compared with $13.9 million in December 31, 2021. Total operating expenses in 2022 were $40 million, compared to $29.4 million in 2021. Total operating expenses in the fourth quarter were $13.3 million, compared to $9.7 million in the fourth quarter of 2021.

The company said its Trichome business entered bankruptcy courts looking for a buyer, but that didn’t seem to happen. It is just winding down the business and liquidating the remaining assets.

Debra BorchardtMarch 29, 2023

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The company is burning through millions in cash.

John SchroyerMarch 29, 2023

High Tide CEO expects to benefit as other companies close their doors.

StaffMarch 28, 2023

The Daily Hit is a recap of the top financial news stories for March 28, 2023.

On the Site

Judge Narrows New York Retail Licensing Injunction to One Region

An injunction issued by a federal judge in November that has stalled retail cannabis licensing in five of New York’s regions has been narrowed now to just one – the Finger Lakes. That means marijuana retail licenses can now be awarded by the state Office of Cannabis Management in the other four regions, which include Brooklyn, Central New York, Western New York and the Mid-Hudson areas. Read more here.

Eight Cannabis Companies Sue Georgia, Allege Fraud, Corruption in Licensing

A coalition of eight companies that submitted bids for medical marijuana licenses in Georgia have filed suit against the state, alleging that the permitting process was corrupt and fraudulent and asking a judge to set aside the license awards. Read more here.

Massachusetts’ MCR Labs Accuses Control Board of Harassment

The CEO and founder of Massachusetts cannabis testing company MCR Labs is accusing the state’s Cannabis Control Board of harassing and intimidating employees, disregarding safety protocols, and compromising their facility’s testing integrity during an unannounced inspection last week. Read more here.

Canopy Growth Fined C$15 Million for Breach of Contract

Canada’s Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) has been ordered by an arbitration tribunal to fork over C$15 million to an unnamed counterparty for breach of contract, the company disclosed this week in a regulatory filing. Read more here.

Leaf Trade, Sweed to Merge Into ‘B2B2C’ Cannabis Tech Platform

Nevada-based cannabis tech companies Leaf Trade and Sweed will merge into a new yet-to-be-named business entity, with Leaf Trade CEO James Yi at the helm. The combined company, Yi said, will result in a new “B2B2C” tech platform that is unique to-date in cannabis. Read more here.

Grown Rogue Gets Boost from Michigan Sales

Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF), reported its fiscal first quarter 2023 results for the three months ended Jan. 31, 2023. Grown Rogue‘s revenue grew 21% to $4.5 million versus last year’s $3.7 million in the same time period. The company also reported a net income of $592,000. Read more here.

SNDL to Buy Dutch Love, Delays Earnings

SNDL Inc. (Nasdaq: SNDL) reported that it has entered into an agreement with Lightbox Enterprises Ltd. to buy four cannabis retail stores operating under the Dutch Love Cannabis banner in a deal valued at $7.8 million. the deal is expected to close by the end of May 2023. Read more here.

In Other News

Texas

Last week, the Texas House Committee on Public Health unanimously approved a bill to increase the THC limits in medical cannabis and expand who is eligible to use it. On Tuesday, goodblend — a state-licensed medical marijuana operator — opened its first dispensary location in Austin. It’s only the third medical marijuana retail location to open in the Lone Star State. Read more here.

Wu-Tang Clan

Newark, New Jersey’s Central Planning Board stomped on a lot of buzzes Monday night, denying an application by Wu-Tang Clan’s Raekwon to open a cannabis lounge a block from the Prudential Center arena after church elders protested and one board member complained that the rendering was offensive. Read more here.

John SchroyerMarch 28, 2023