IM Cannabis Corp., one of the world’s pioneering medical cannabis companies with operations across Europe, is pleased to announce that its common shares are set to commence trading under the ticker “IMCC” on the Canadian Securities Exchange (the “CSE”). IMC becomes the first Israeli medical cannabis operator to list its shares in Canada. The listing follows the recent completion of its reverse takeover by Israeli-based IMC Holdings Ltd. that included a private placement offering of subscription receipts for gross proceeds of approximately CAD$20.4 million. The Company is also pleased to report progress in expanding its cultivation and distribution network across the fast-growing European Union (“EU”).
“The team at IMC has done exceptionally well to position the Company as a market leader in the EU,” said Oren Shuster, Chief Executive Officer. “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, recognized its potential and have bought into its European expansion strategy, which now includes operations in Germany, a supply agreement in Europe, and will soon include operations in Portugal and Greece as well.”
- Focus Medical Herbs Ltd. (“Focus Medical”), a licensed medical cannabis producer in Israel with whom IMC has an exclusive commercial agreement to contribute IMC’s intellectual property and branding, has recognized revenue of CAD$4.3 million in the first half of 2019 from operations in Israel, a 180% increase in Focus’ sales over the prior year
- The first cycle of production has been planted by the Company’s supply partners in Europe and the initial shipment to Germany is expected in Q2 2020
- Additional EU-GMP cultivation facilities and supply sources in Portugal and Greece progressing according to plan
In the first half of 2019, Focus Medical increased revenue to a record CAD$4.3 million, from CAD$2.4 million in the same period last year. The increase in revenue is attributable to an increase in medical patients served over the prior year, which has reached over 5,000 monthly patients. Under its exclusive commercial agreement with Focus Medical, the Company is entitled to a royalty of 25% of Focus Medical’s revenue in addition to amounts for certain services billed at cost plus 25%.
Additionally, Focus Medical received an extension to its licenses from the Israeli Institute of Quality & Control to grow and propagate cannabis for medical use until October 2020. The license extension confirms that Focus Medical meets IMC-G.A.P. standards.
A key pillar of the Company’s growth strategy is continued international expansion. IMC has made significant progress at increasing its cultivation and distribution operations in the EU. IMC views the market in Germany as particularly attractive given its size, regulatory structure and proximity to Israel. Accordingly, in March 2019, IMC purchased Adjupharm GmbH (“Adjupharm”), an EU-GMP manufacturer and distributor based in Germany. Adjupharm is fully licensed to import, export and distribute medical cannabis in Germany with a 13-year track record of distributing medical products to pharmacies.
Furthermore, the Company’s cultivation partner in Europe has received its EU-GMP certification and has already planted the first cycle of production. First shipment of IMC-branded medical cannabis to Germany is expected in second quarter of 2020. Management continues to pursue other partnerships that will increase the distribution of IMC-branded products to pharmacies in Germany.
“We are making great strides expanding our operations in Europe. This is attributable to the unmatched experience and knowledge our team has accumulated over the past nine years in the medical cannabis sector in Israel,” Mr. Shuster continued. “We expect that the demand for medical cannabis in the EU will continue to increase over the long-term. Accordingly, our business strategy focuses on leveraging the first mover advantage by operating the highest standard facilities, producing top quality pharma-grade cannabis and distributing IMC-branded products through established channels. At the same time, we will continue to leverage our presence in Israel to bolster IMC’s research and development initiative and collaborate with world renowned scientists on cutting-edge technology to the benefit of patients around the world. We have been active in the research and development ecosystem for cannabis technologies in Israel and expect to make further announcements regarding these efforts in the near term.”