IM Cannabis Archives - Green Market Report

Debra BorchardtAugust 14, 2023


IM Cannabis Corp.  (NASDAQ: IMCC) (CSE: IMCC) announced its financial results today for the second quarter ending June 30, 2023. All amounts are reported in Canadian dollars.

Revenues at IM Cannabis increased 4% for the second quarter to $13.2 million versus last year’s $12.7 million for the same time period. The net losses were flat at $3.7 million. The basic loss per share from continuing operations in the quarter of 2023 was $(0.26), compared to a loss of $(0.49) per share in the second quarter of 2022.

“In Q2 2023, we continued towards our goal of sustainable profitability,” said Oren Shuster, Chief Executive Officer of IMC. “The rightsizing and refocusing we have been working through since Q4 of last year was led by the strategic decision to exit the recreational Canadian market, allowing us to fully lean into our heritage as one of the pioneers in the Israeli medical cannabis market.  Our extensive expertise within our highly regulated local market, gave us a clear advantage when expanding into Germany, another highly regulated medical market.  The strategic pivot to focus on the two largest national medical markets is clearly reflected within our organization post-restructure. I believe this is the cornerstone for our success and stability within these two similar markets.”

Cash and cash equivalents as of June 30, 2023, were $1.3 million, compared to $2.4 million on December 31, 2022. The company’s total liabilities as of June 30, 2023, were $34.2 million, compared to $36.9 on December 31, 2022, a decrease of approximately 7%. The decrease was mainly due to the reduction in trade payables according to the company’s statement.

“Active cost and margin management was a key focus of Q2, accelerating our to move towards sustainable profitability, while maintaining sales,” said Itay Vago, Chief Financial Officer of IMC. “The actions we took since exiting the Canadian market last year and the associated restructure, have significantly improved our gross margin and reduced our total operating expenses, leading to a substantial decrease in our non-IFRS Adjusted EBITDA Loss.”

Adam JacksonAugust 19, 2022


XS Financial closed on a $24 million line of credit with Needham Bank committing $20 million and acting as the administrative agent. XS Financials’ existing $4 million line of credit with an FDIC-insured bank will be retired, and the same bank will contribute $4 million in the new loan.

“With many capital sources in the industry experiencing a near-term pullback in financing, we are thrilled to continue funding our target borrowers at scale for their critical expansion projects,” XSF CEO David Kivitz said.

XSF fully retired its $15 million line of credit with the Garrington Group concurrently with the closing of this loan.

The new loan has a term of two years, expiring in August 2024. Loans made under the line of credit will bear interest at an annual rate equal to the Wall Street Journal Prime rate plus 1%, with a floor of 6%, and may be prepaid with no penalty at any time.

This credit facility is a strong indication of James’ and our lenders’ ability to offer credit solutions tailored to the unique needs of a company and underscores the strength of our nationwide banking platform in the fast-growing cannabis market,” Needham Bank CEO Joseph Campanelli said.

IM Cannabis issues financing 

IM Cannabis also said that it will issue $5 million worth of nonbrokered financing – similar to a stock split. The company intends to use the proceeds from the offering for general working capital purposes.

Following the deal, the company may issue up to 10 million common shares at a price of 50 cents per common share. The deal is expected to close on or about Aug. 22.

Debra BorchardtAugust 15, 2022


IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) reported financial results for its second quarter ended June 30, 2022. IMCC said that revenues rose 114% in the second quarter and were $23.8 million versus the same quarter last year. Total dried flower sold was 3,210 kilograms at an average selling price of $5.72 per gram, compared to 1,842 kilograms for the same period in 2021 at an average selling price of $3.92 per gram. The increase in revenues was primarily attributed to the increase in the quantity of medical and recreational cannabis products sold, as well as to the higher average selling price per gram the company realized from its portfolio of premium branded cannabis products in Israel and Canada.

IMCC delivered a net loss of $18.98 million in the second compared to a net loss of $5.01 million for the same quarter in 2021. The company said that included in the net loss was a non-cash charge of $5.4 million, related to restructuring activities in Canada and Israel, along with associated write-downs in tangible and intangible assets, such as other non-cash impairments of $1.5 million in financial expenses and $3.8 million in general and administrative costs.

The company though burned through its cash in the quarter with cash and cash equivalents totaling just $5.86 million as of June 30, 2022, versus $34.05 million as of December 31, 2021. General and administrative expenses were $11.1 million in the quarter versus $7.4 million in 2021. The increase in the general and administrative expenses was mainly attributable to the growing corporate activities in Israel and Canada following the company’s acquisitions in 2021.

“We have accelerated along the path to profitability, with increased revenues, operational streamlining, and a focus on cost reduction,” said Oren Shuster, Chief Executive Officer of IMC. “Our primary goal is to continue to increase revenue in each of our core markets to build long-term shareholder value. By focusing on sustainable revenue growth, while rigorously pursuing cost and margin efficiencies, we believe we can achieve profitability in the short term.”

“Our long-term strategy relies on geographic diversification and preparation to target, upon legalization, new adult-use recreational cannabis markets in Germany followed by the rest of Europe. We are preparing to leverage our global cultivation, brand, and commercial expertise to profitably capture substantial market share across Europe. Our strength is in properly positioning our brands in different markets and the introduction of new SKUs to consistently exceed consumer and patient expectations.”

StaffMarch 31, 2022


IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) released financial results for the fourth quarter and fiscal year ended December 31, 2021. Revenues were $20.0 million in the fourth quarter, representing an increase of 309% over 2020’s fourth quarter and 35% sequentially. The net loss for the fourth quarter was $12.5 million versus a net loss of $20.0 million in 2020. The basic and diluted loss per share in the quarter was $0.19 compared to basic and diluted loss per share of $0.13 in the fourth quarter of 2020.

Revenues in 2021 were $54.3 million, representing an increase of 242% from 2020. Total dried flower sold for the year ended December 31, 2021, was 8,410kg at an average selling price of $4.90 per gram, compared to 2,586kg for the same period in 2020 at an average selling price of $5.75 per gram, derived from the lower average selling price per gram and higher sale volumes the Company gained from its acquisitions of Trichome and MYM. The net loss was $18.5 million in 2021 compared to a net loss of $28.7 million in 2020. The b asic and diluted loss per share in 2021 were $0.31 and $0.66, respectively, compared to basic and diluted loss per share of $0.74 in 2020.

“Our revenue growth of 242% to a record of over $54 million in 2021 is a direct result of executing on our strategy to build a world-class operating platform for the premium cannabis market,” said Oren Shuster, Chief Executive Officer of IMC. “The network of pharmacies we have acquired in Israel, which includes the country’s largest online pharmacy business, supports a tech-enabled expansion of our patient base to fortify our position as one of the leading retail medical cannabis providers in the country. In Canada, our premium WAGNERS brand and ultra-premium Highland Grow continue to gain market share, with retail sales in Ontario increasing over 50% in Q4 2021 as compared to Q3 2021[3]. With continuous improvements in yields and quality, we have both the capacity and the desired quality attributes to support our discerning customer and patient needs in our addressable markets.”

The company said cash and cash equivalents totaled $13.9 million on December 31, 2021, compared to $8.9 million on December 31, 2020.

Looking ahead IMC said it expects first quarter 2022 revenue and gross margin to increase sequentially. The company said it expects to release first quarter financial results on or around May 16, 2022.

StaffMarch 10, 2022


IM Cannabis Corp.  (CSE: IMCC) (NASDAQ: IMCC) provided preliminary unaudited financial results for the three months and fiscal year ended December 31, 2021. Preliminary revenues for the fourth quarter were at least $20 million, representing an approximate increase of at least 37% sequentially and at least 308% compared to the same prior-year period.

Preliminary revenues for fiscal year 2021 were at least $54 million, representing an approximate increase of at least 240% from fiscal year 2020. Preliminary gross margin before fair value adjustment was at least 22% in fiscal year 2021.

“We built significant momentum across our operating platform in 2021, as evidenced by our annual revenues growth of at least 240% to a record of at least $54 million,” said Oren Shuster, Chief Executive Officer of IMC. “In Israel, we have become among the largest distributors of medical cannabis and are well positioned to capture market growth today and in the future with the potential for recreational legalization. We continue to capture meaningful market share in the premium segment in Canada driven by our staunch focus on cultivation excellence and increasing brand recognition of WAGNERS and Highland Grow. Importantly, our execution with our recreational and medical operations in Canada and Israel and our global distribution expertise provides us with the blueprint to effectively capitalize on the substantial German market opportunity as it liberalizes its cannabis laws.”

In the fourth quarter, the company announced the anticipated 2022 launch of WAGNERS brand in the rapidly evolving German medical cannabis market. After the quarter ended, the WAGNERS brand was launched in Israel.

“As we move through 2022, we remain focused on realizing synergies across our supply chain while scaling operations in the three largest federally legal markets where we currently operate, which makes IMC uniquely positioned to emerge as the leading purveyor of premium cannabis on a global scale. I look forward to providing further updates to the market during our upcoming earnings call later this month,” concluded Shuster.

StaffJuly 28, 2021


IM Cannabis Corp. (NASDAQ: IMCC) is buying R.A. Yarok Pharm Ltd. also called Pharm Yarok, Rosen High Way Ltd., and High Way Shinua. Ltd. by IMC Holdings Ltd., a wholly-owned Israeli subsidiary. The deal is valued at C$4.6 million.

The acquisition is expected to integrate assets that include a license to sell medical cannabis to patients (including the ability to sell online), a large customer service center, a virtual store, and online properties, intellectual property, a logistics, and warehousing center with specialized storage space for over 350 kg of medical cannabis as well as a large customer base.  IMC said it expects to be able to consolidate the financial results of Pharm Yarok, Rosen High Way, and HW Shinua as of the date of executing the definitive share purchase agreements and prior to Closing. The collective current annual revenue run rate of Pharm Yarok, Rosen High Way, and HW Shinua is approximately $8 million with an expected positive EBITDA of approximately $1 million.

“The Israeli medical cannabis market continues to grow and evolve very rapidly. Pharm Yarok is one of the leading medical cannabis retailers in Israel, selling approximately 1,000 kg of medical cannabis per year and serving over 2,000 patients per month. The Acquisition significantly advances our retail expansion strategy, initiated earlier this year through the acquisition of Panaxia-to-the-Home’s distribution and in-house pharmacy activities,” said Oren Shuster, CEO of IMC. “We expect that the continuation of our vertical integration strategy will increase our purchasing power with suppliers, create potential synergies with our established call center and online operations and provide for additional margin on direct sales and up-sells across a growing range of products. We welcome the Pharm Yarok and Rosen High Way management teams and employees, along with their expertise in retailing and branding.”

Acquired Companies

Pharm Yarok is a leading medical cannabis pharmacy located in central Israel. Pharm Yarok serves more than 2,000 medical cannabis patients per month. Pharm Yarok is located in Netanya, a city in central Israel, and has been serving patients since June 2020.

Rosen High Way is a trade and distribution center providing medical cannabis storage, distribution services, and logistics solutions for cannabis companies and pharmacies in Israel and HW Shinua is an applicant for a medical cannabis transportation license from the Israeli Medical Cannabis Unit. If the license is received it would permit HW Shinua to transport large quantities of medical cannabis to and from Pharm Yarok’s pharmacy and Rosen High Way’s distribution center and to and from third parties in the medical cannabis sector, including medical cannabis growing facilities, pharmacies, manufacturers and distribution centers across Israel.

The transaction consists of approximately $4.6 million in cash, of which $1.3 million shall be invested in IMC in consideration for IMC’s equity by the shareholders of Pharm Yarok, Rosen High Way, and HW Shinua.

StaffApril 5, 2021


International cannabis company IM Cannabis Corp. (NASDAQ: IMCC)  entered into a deal to buy MYM Nutraceuticals Inc. and its licensed producer subsidiary Highland Grow Inc. in a deal that is said to be immediately accretive. The acquisition reinforces IMC’s strategy as a leading global premium cannabis producer and purveyor. Following completion of the Transaction, expected to occur before the end of the second half of 2021, IMC will continue to operate under the IM Cannabis Corp. name with its common shares trading on the NASDAQ Capital Market and Canadian Securities Exchange under the ticker symbol “IMCC“.

“Acquiring MYM is consistent with IMC’s focus on premium and super-premium segments of the cannabis market for consumers and patients in all markets. The Transaction also demonstrates our disciplined approach to acquiring accretive companies that create financial and operational synergies and result in additional opportunities to export premium cannabis products to Israel and Germany,” said Oren Shuster, CEO, IMC. “With coast-to-coast distribution, including a strong leadership position in Eastern Canada, Highland Grow will further enhance our distribution capabilities and fast-track our entrance into new markets.

The acquisition is expected to be immediately accretive to IMC’s financial results in 2021 and beyond. Highland Grow is expected to generate net revenue of $29 million and $38 million and gross margins of 34% to 36% in 2021 and 2022, respectively. Inclusive of potential synergies, it is estimated that the acquisition of Highland Grow implies a purchase multiple of approximately 3.4x EV/revenue and 10.6x EV/EBITDA for 2021 and 2.3x EV/revenue and 6.7x EV/EBITDA for 2022.

IM Cannabis said in a statement that buying MYM and its subsidiary Highland Grow will expand its focus on premium and super-premium branded cannabis products in Canada. With coast-to-coast distribution, including a strong leadership position in eastern Canada, Highland Grow enhances IMC’s distribution capabilities, fast tracks the entrance of JWC (expected soon to be relaunched as “Wagners“) into new markets, and is expected to drive significant incremental revenue and EBITDA growth. With the demand for premium-indoor grown cannabis increasing internationally, IMC’s medical patients in Israel will now have even more options from which to choose. Highland Grow has experienced meaningful revenue growth over the last six months, is currently profitable on an EBITDA basis, and is expected to be a meaningful contributor to IMC’s revenue and profitability trajectory in 2021 and beyond.

Kaitlin DomangueNovember 13, 2019


IM Cannabis Corp became the first Israeli medical cannabis operator to list its shares in Canada. It now trades under the ticker “IMCC” on the Canadian Securities Exchange. This listing follows Israeli-based IMC Holdings Ltd’s recent reverse takeover of IMC, formerly known as Navasota Resources Inc., that included a private placement offering of approximately CAD$20.4 million. The subscription receipts from the private placement purchase were converted into 19,460,527 Common Shares and 9,730,258 Common Share purchase warrants. 

The company has been listed on the Canadian Securities Exchange for about a week. At the time of this article, IMCC is listed at CAD$0.40 cents per share with its previous close at CAD$0.50 cents per share. Their current shares outstanding is CAD$145.74 million.

The company also excitedly announced its plan for expansion to Europe, specifically with its operations in Germany, and will soon include Portugal and Greece. Oren Shuster, the CEO of IMC says, “The team at IMC has done exceptionally well to position the Company as a market leader in the EU. Against a backdrop of challenging capital market conditions in the cannabis industry, investors have recognized the team’s stellar operating history in the medical cannabis sector…” 

Initial shipment from the EU-GMP facility in Europe to Germany is expected in Q2 2020.

IMC is an international medical cannabis company, and a well-known Israeli brand of medical cannabis products. In Europe , IMC is establishing a fully operational, vertically integrated medical cannabis business spearheaded by its distribution arm in Germany and augmented by strategic agreements with certified EU-GMP Standard suppliers, making it one of the only medical cannabis companies with fully integrated operations in Europe . IMC intends to leverage IMC’s brand to establish a foothold in emerging medical cannabis markets including Germany , Portugal and Greece . IMC’s core Israeli business includes offering branding, know-how and other intellectual property-related services to the Israeli medical cannabis market. Its key assets in Israel include commercial agreements with licensed producers and an option to purchase licensed entities. IMC has developed proprietary processes in its operations and is active in developing innovative technology for global medical cannabis consumers.


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