IM Cannabis provides up-to-date information on German operations and financial prospects
TORONTO, ON, BAD OLDESLOE, GERMANY, and GLIL YAM, ISRAEL / ACCESSWIRE / July 23, 2021 / IM Cannabis Corp. (“IMC” or the “Company”) (CSE: IMCC) (NASDAQ: IMCC), a multi-country operator (“MCO”) in the area of medical and recreational cannabis for adults with offices in Israel, Germany and Canada, announces the completion of a new, state-of-the-art logistics center in Germany (the “Logistics Center”) that will enable Adjupharm GmbH (“Adjupharm”), the company’s fully licensed EU GMP subsidiary, to internally manage all aspects of its supply chain including, in particular, the repackaging of cannabis in bulk. The company expects the logistics center to greatly expand Adjupharm’s capacities as a focal point of IMC’s European strategy.
Since being acquired by IMC, Adjupharm has upgraded its manufacturing and storage capabilities to meet the anticipated surge in medical cannabis volumes as the company and Adjupharm sign new supply agreements. With the completion of the logistics center, IMC has now doubled its presence in Germany to around 80,000 square feet, upgraded its production facilities with the latest technology and increased its storage capacity to seven tons of cannabis. With the operation of the logistics center, the now secured new sources of supply and the expansion of the portfolio with partly exclusive premium products and a broad network of sales partners, the company expects to strengthen and expand its presence on the German market.
Preliminary Q2 results and Q3 outlook
IMC expects net sales to be in the range of $ 11 million to $ 12 million in the second quarter of 2021, a sequential increase of about 30% from the first quarter. Compared to the previously announced financial outlook of April 23, 2021, revenue was impacted by delays in contractually agreed deliveries to Germany, which accounted for almost all of the variance between actual and estimated revenue for the quarter. These delays were due to the lack of product availability from Adjupharm’s main European delivery partner. Corrective action has now been taken during the quarter to diversify supplies to Germany, including the signing of additional agreements to import cannabis from Canadian licensed producers.
IMC expects significant revenue growth in the third quarter of 2021 based on the following considerations:
- Increased sales of medical cannabis by Focus Medical in Israel through the fulfillment of existing supply contracts to Israeli pharmacies
- Including a full quarter of revenue from the recently completed acquisition of Panaxia-to-the-Home’s (“Panaxia”) sales and in-house pharmacy operations versus 31 days in the second quarter.
- The consolidation of nearly a full quarter of revenue from the acquisition of MYM Nutraceuticals Inc. (“MYM”) by IMC, which closed on July 9, 2021.
- Continuous growth at Trichome JWC Acquisition Corp. (“Trichomes”), as the recently launched adult recreational brand WAGNERS continues to expand
- Resumption of growth in Germany with new deliveries at the beginning of the third quarter and the signing of additional agreements to ensure a continuous flow of EU GMP deliveries.
While we were confronted with some operational challenges in Germany in the second quarter, we took measures to address them promptly. We believe in our strategy, assets and team and believe our results for the second half of 2021 will show it.
Oren Shuster, CEO of IMC
For the remainder of the year, we will gain traction from the Panaxia and MYM acquisitions, a return to growth in Germany with assured new deliveries, increased cannabis sales in Israel through fulfillment of existing Focus Medical supply agreements, and continued growth in Trichome as new brands .
About IM Cannabis Corp.
IMC is an MCO in the field of medicinal and recreational cannabis for adults with headquarters in Israel and offices in Israel, Germany and Canada. Over the past decade, the company believes that the IMC brand has become synonymous with quality and durability in the Israeli medical cannabis market. The company has also expanded its business to provide intellectual property-related services to the medical cannabis industry.
In Europe, IMC operates through Adjupharm, a Germany-based subsidiary and an EU GMP certified distributor for medical cannabis. IMC’s European presence is complemented by strategic alliances with various pan-European EU GMP breeders and traders in order to benefit from the increased demand for medical cannabis products in Europe and to make the IMC brand and its product portfolio accessible to European patients.
In Canada, IMC operates through Trichome d / b / a JWC. JWC is a licensed producer based in Kitchener, Ontario, selling cannabis flower, pre-rolls, hashish and kief to the Canadian recreational cannabis market under the JWC and WAGNERS brands. JWC works to high standards in providing clean, consistent, premium aeroponically grown cannabis products to medical patients and the adult market across Canada and the world. IMC also operates MYM and its licensed producer subsidiary Highland Grow Inc.
About Focus Medical Herbs Ltd.
Focus Medical is one of eight originally licensed medical cannabis manufacturers in Israel and has more than 10 years of experience growing high quality medical cannabis in the Israeli market. Focus Medical has an exclusive commercial agreement with IMC to distribute its manufacturing under the IMC brand. In addition to its own capabilities, Focus Medical has supply agreements with two other breeders for additional supply using its proprietary genetics and for sale under the IMC brand.
The company and its management believe that the estimated earnings contained in this press release are reasonable as of the date of this release and are based on management’s current beliefs, strategies, expectations, assumptions and projections and have been calculated using accounting policies, which generally corresponds to the current accounting policies of the company. These estimates are considered forward-looking financial projections and financial information (collectively “FOFI”) under applicable securities laws. These estimates and all other FOFIs contained herein have been approved by the company’s management as of the date of this release. These FOFI are provided to provide information about management’s current expectations and goals regarding the benefits of existing sales and supply agreements with Focus Medical and Adjupharm, increasing sales in Israel through the fulfillment of existing supply agreements with Focus Medical, increasing sales from resuming product deliveries Adjupharm and new supply contracts for medical cannabis for Adjupharm in Germany, inclusion of the Panaxia, MYM and Trichome divisions in the company’s financial results after the respective acquisitions, further product launches of Trichomes under the WAGNERS brand and the company’s future business. However, because this information is highly subjective and subject to numerous risks, including the risks discussed in the “Disclaimer for Forward-Looking Statements” above, it should not be relied upon as an indication of future results. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the FOFI prove incorrect, actual results may differ materially from the intended, planned, expected, assumed, estimated or expected results described herein. While IMC’s management has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there are others that cause results not to be as expected, estimated or intended. The company disclaims any intention or obligation to update or revise FOFI, whether as a result of new information, future events, or for any other reason, except as required by securities laws.
Original press release
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