IM Cannabis Archives - Green Market Report

StaffJuly 28, 2021
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4min7610

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
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3min13850

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
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3min24440

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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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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