Debra BorchardtOctober 13, 2023
"Someone wants to kill us all the time, so we have to adjust," said IM Cannabis CEO Oren Shuster.
IM Cannabis Corp Archives - Green Market Report
Debra BorchardtOctober 13, 2023
StaffMarch 8, 2023
The Daily Hit is a recap of the top financial news stories for March 8, 2023.
On the Site
Oklahoma Voters Reject Adult-Use Cannabis in Low-Turnout Special Election
Oklahoma’s burgeoning cannabis industry will remain medical only after voters rejected a proposed ballot initiative that would have legalized adult-use marijuana in the state. Nearly 62% voted no, while 38% voted yes, with more than 95% of ballots counted as of Wednesday morning. Despite the backing of several high-profile organizations, including the Oklahoma Democratic Party and the Marijuana Policy Project, the initiative faced opposition from law enforcement groups and some prominent political leaders. Read more here.
Slang Worldwide Latest Multistate Brand to Exit California
Slang Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) will become the latest multistate cannabis brand to effectively pull up stakes from California, CEO John Moynan said in an interview with Green Market Report on Tuesday. The pivot comes less than two years after the company made a splash about re-entering California, which it previously left in 2019. Read more here.
Michigan’s Skymint in Receivership, Showing Cracks in Cannabis Market
Skymint, one of Michigan‘s largest marijuana cultivators and retailers, is now under the control of a receiver as the industry faces an increasingly difficult market in the state. The action by the Ingham County Circuit Court in Lansing signals what could be one of the largest marijuana company failures in the U.S. in the nearly decade-long span since the substance was legalized in certain states. Read more here.
Trulieve Revenue Slips in Fourth Quarter
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) delivered fourth-quarter revenue of $302 million, with 2% retail revenue growth and 96% of revenue from retail sales. This fell by 1% from $305 million in the same time period in 2021 and missed the Yahoo Finance estimate for revenue of $304 million. Read more here.
IM Cannabis Corp. to Lay Off At Least 20% of Workers in Major Restructuring
Israel-based IM Cannabis Corp. (Nasdaq: IMCC) (CSE: IMCC) announced Wednesday it will lay off at least 20% – and perhaps up to a quarter – of its employees in its Middle East home nation, in a restructuring push toward profitability. Read more here.
In Other News
NewLake Capital Partners
NewLake Capital Partners, Inc. (OCTQX: NLCP), a provider of real estate capital to state-licensed cannabis operators, reported revenue of $12.2 million for the fourth quarter ended Dec. 31, 2022. That’s a year-over-year increase of 35.7%. Net income attributable to common stockholders totaled $6.7 million, as compared to $4.3 million. Read more here.
Women in Cannabis
Women holding executive positions in the cannabis industry only grew 1% to 23.1% in 2021, short of the greater US business world where women hold 35% of leadership. Maybe if women had more control of the industry – you would see stronger performance. Read more here.
John SchroyerMarch 8, 2023
The move comes after the company withdrew from the Canadian cannabis market.
StaffMay 13, 2022After the market closed on Thursday, IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC)reported financial results for the first quarter ending March 31, 2022 as revenues increased 169% year-over-year to $23.6 million. IMCC said that total dried flower sold in the quarter was 3,035kg at an average selling price of $6.23 per gram, compared to 1,185kg for the same period in 2021 at an average selling price of $4.94 per gram, derived mainly from the higher average selling price per gram the company recognized through its acquired pharmacies in Israel.
IMCC also delivered a net loss of $10.7 million in the quarter versus net income of $4.7 million for the same time period in 2021. Basic and diluted loss per share in Q1 2022 of $0.14 and $0.17, respectively, compared to basic and diluted income (loss) per share in Q1 2021 of $0.11 and ($0.06), respectively.
“We continue to progress well on our path to profitability and achieved another quarter of record revenues, which grew 169% year-over-year in the first quarter,” said Oren Shuster, Chief Executive Officer of IMC. “We execute key initiatives that drive margin expansion within each of our market segments and across our operating footprint, which reflect the benefits of integrating our global model. In Israel, we work to consolidate four of the country’s leading pharmacies and centralize our distribution and customer support to potentially create significant cost savings while strengthening our brand presence. We also increasingly leverage yield from our Canadian cultivation facilities for our products imported to and sold in Israel, which exhibit a gross margin profile that is nearly double that of products sourced from suppliers.”
While the company didn’t give a numerical forecast for the second quarter it did say that it continues to experience meaningful growth across its global platform, primarily in Israel and Canada, reflecting the continued execution of the company’s strategy, its accelerating international brand presence, its focus on cultivating premium flower, and its global distribution and supply chain model. On a preliminary, unaudited basis, IMC said it expects second quarter revenue and gross margin to increase sequentially.
“In Canada, our WAGNERS and Highland Grow brands have achieved market share leadership due to our relentless focus on delivering upon consumer expectations, with each brand holding a top three ranking in Ontario within their price segments. As we increase internal cultivation toward full capacity, we also focus on key operational initiatives to improve yield and reduce volume-based costs. These initiatives will help us reach positive Adjusted EBITDA, which we expect to achieve on a run rate basis in the second quarter of 2022, positioning us to be cash flow positive on a run rate basis in the following quarter.”
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