IMC Germany's accelerated growth potential leans strongly on
its supply strategy through its ability to partner with cannabis
growers for EU-GMP certification, bolstering the company's supply
chain with exclusive product
TORONTO and GLIL YAM, Israel, June 5, 2024
/PRNewswire/ -- IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) (the
"Company," "IMCannabis," or "IMC"), a leading
medical cannabis company with operations in Israel and Germany, is experiencing accelerated growth in
Germany after the April 1st partial legalization,
further to the Company's press release dated March 25, 2024. Adjupharm GmbH's, IMC's German
subsidiary ("Adjupharm" or "IMC Germany"), is
supporting its growth by further bolstering its supply chain with
an additional EU-GMP supplier, GlassHouse Botanics Inc.
("GlassHouse Botanics"), headquartered in Whitewater,
Ontario.
The April 1st partial
legalization of cannabis in Germany, has potentially paved the way for
tremendous category growth. With a population of over 83 million,
Germany has more than double the
population of California, which
had a cannabis industry of about $5
billion in 2023.[1] Until the social clubs are up
and running, the only legal way to buy cannabis in Germany is with a prescription, driving
significant growth in the Medical Market.
"While is impossible to say how big the opportunity in
Germany will be, if we assume a 1%
penetration and an average spend of $200/month, the German market could have a
potential run rate of approximately $2
billion by the end of 2025," pointed out Oren Shuster, CEO of IMC.
IMC Germany spent 2023 preparing for the legalization by putting
the processes in place to drive accelerated growth, while focusing
on active cost management with the goal of achieving sustainable
profitability. In 2023, IMC Germany delivered +182% growth,
outperforming the market by 162%, closing the year as a strong #6
among the cannabis distributors and ranked #1 in sales per
SKU[2].
"I am extremely proud of the work the team did in 2023, our
singular focus built the foundation we are now using to drive
accelerated growth," said Richard
Balla, CEO of IMC Germany. "Since the April 1st legalization, we immediately
started to see an increase in the demand. Our sales from April
through the end of May have increased by over 160% versus the
average sales of the last six months before legalization. The
medical cannabis market clearly is evolving; however, it is too
early to assess the mid to long term effect. What has become
clear though, is the importance of a consistent, reliable supply
chain. It needs to be able to match the pace of the rapidly growing
market."
All cannabis flowers that are sold through pharmacies must come
from an EU-GMP facility. Of all the licensed Canadian
cannabis producers, fewer than 20 are EU-GMP
certified[3], making this one of the primary supply
chain bottle necks, limiting the ability of German medical cannabis
distributors to import product from Canada. IMC Germany is able to build a more
robust, exclusive supply chain by having the necessary
certifications and qualified personnel to preform EU-GMP
3rd country inspections for qualified cannabis
producers. GlassHouse Botanics is a privately held Canadian
corporation in the business of cultivating and processing
pharmaceutical-grade medical cannabis flower. Through their
partnership with IMC Germany, they received their EU-GMP
certification.
"One of our key objectives is to make sure that our supply chain
is strong enough to meet the demand," commented Oren Shuster. "Our ability to perform EU-GMP
3rd country inspections for licensed cannabis growers is
a fundamental part of the strategy. We are delighted to have
exclusively launched GlassHouse Botanics' first strain and have
already started the EU-GMP audit process with additional licensed
growers, further supporting our supply strategy."
"GlassHouse Botanics was built on the premise to create a highly
efficient, state-of-the-art facility, custom-made for EU-GMP
certification," said Jeff
Black, CEO and Founder of GlassHouse Botanics. "Through
our EU-GMP certification, we can now focus on ramping up production
to supply the growing demand in the German medical cannabis
market."
Change to Board of Directors
In addition, IMC announces today that Marc Lustig will be stepping down as director of
the Company and as Chairman of the Board of Directors, effective
immediately.
The Board of Directors has appointed Oren Shuster, currently a director and CEO of
IMC, as the new Chairman of the Board of Directors of
IMC.
"The Board of Directors would like to thank Marc for his
steadfast dedication and contributions to IMC during his tenure as
Chairman of the Board," said Oren Shuster.
"I believe the Chairman role will be in better hands with Oren,
who can fully dedicate his focus to it. It has been a pleasure to
serve as the Chairman of the Board of the Company over the past few
years and I believe IMC has persevered through a very challenging
environment but is now positioned to excel," said Marc
Lustig.
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis
company that provides premium cannabis products to medical patients
in Israel and Germany, two of the largest medical cannabis
markets, with a focus of achieving sustainable and profitable
growth. The Company leverages a transnational ecosystem powered by
a unique data-driven approach and a globally sourced product supply
chain. With an unwavering commitment to responsible growth and
compliance with the strictest regulatory environments, the Company
strives to amplify its commercial and brand power to become a
global high-quality cannabis player.
The IMC ecosystem operates in Israel through its commercial relationship
with Focus Medical Herbs Ltd., which imports and distributes
cannabis to medical patients, leveraging years of proprietary data
and patient insights. The Company also operates medical cannabis
retail pharmacies, online platforms, distribution centers, and
logistical hubs in Israel that
enable the safe delivery and quality control of IMC products
throughout the entire value chain. In Germany, the IMC ecosystem operates through
Adjupharm GmbH, where it distributes cannabis to pharmacies for
medical cannabis patients.
Disclaimer for Forward-Looking Statements
This press release contains forward-looking information or
forward-looking statements under applicable Canadian and U.S.
securities laws (collectively, "forward-looking statements"). All
information that addresses activities or developments that we
expect to occur in the future are forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as "seek", "anticipate", "believe", "plan",
"estimate", "expect", "likely" and "intend" and statements that an
event or result "may", "will", "should", "could" or "might" occur
or be achieved and other similar expressions. Forward-looking
statements are based on the estimates and opinions of management on
the date the statements are made. In the press release, such
forward-looking statements include, but are not limited to,
statements relating to statements relating to compliance with
NASDAQ's continued listing requirements, and timing and effect
thereof and the potential for an extension to regain compliance;
Company leaving the Canadian cannabis market to focus on
Israel, Germany and Europe and the potential outcome and effect of
the collaboration with GlassHouse Botanics in the German market;
and the stated benefits of the partial legalization of cannabis in
Germany.
Forward-looking information is based on assumptions that may
prove to be incorrect, including but not limited to: the Company's
ability to maintain NASDAQ's continued listing requirements, the
Company's ability to focus on Israel, Germany and Europe; the Company's ability to realize upon
the stated benefits of the collaboration with GlassHouse Botanics
in the German market; and the Company's ability to realize upon the
stated benefits of the partial legalization of cannabis in
Germany. The above lists of
forward-looking statements and assumptions are not exhaustive.
Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results may differ materially from those
currently anticipated or implied by such forward-looking statements
due to a number of factors and risks. These include: the
failure of the Company to comply with applicable regulatory
requirements in a highly regulated industry; unexpected changes in
governmental policies and regulations in the jurisdictions in which
the Company operates; the Company's ability to continue to meet the
listing requirements of the Canadian Securities Exchange and the
NASDAQ Capital Market; any unexpected failure to maintain in good
standing or renew its licenses; the ability of the Company and
Focus Medical (collectively, the "Group") to deliver on their sales
commitments or growth objectives; the reliance of the Group on
third-party supply agreements to provide sufficient quantities of
medical cannabis to fulfil the Group's obligations; the Group's
possible exposure to liability, the perceived level of risk related
thereto, and the anticipated results of any litigation or other
similar disputes or legal proceedings involving the Group; the
impact of increasing competition; any lack of merger and
acquisition opportunities; adverse market conditions; the inherent
uncertainty of production quantities, qualities and cost estimates
and the potential for unexpected costs and expenses; risks of
product liability and other safety-related liability from the usage
of the Group's cannabis products; supply chain constraints;
reliance on key personnel; the risk of defaulting on existing debt
and war, conflict and civil unrest in Eastern Europe and the Middle East; and the risk of the Company's
inability to capitalize upon the partial legalization of cannabis
in Germany. Please see the
other risks, uncertainties and factors set out under the heading
"Risk Factors" in the Company's annual report dated March 28, 2024, which is available on the
Company's issuer profile on SEDAR+
at www.sedarplus.ca and Edgar at www.sec.gov/edgar.
Any forward-looking statement included in this press release is
made as of the date of this press release and is based on the
beliefs, estimates, expectations and opinions of management on the
date such forward looking information is made. The Company does not
undertake any obligation to update forward-looking statements
except as required by applicable securities laws. Investors should
not place undue reliance on forward-looking statements. Forward
looking statements contained in this press release are expressly
qualified by this cautionary statement.
Any forward-looking statement included in this press release is
made as of the date of this press release and is based on the
beliefs, estimates, expectations and opinions of management on the
date such forward-looking information is made. The Company does not
undertake any obligation to update forward-looking statements
except as required by applicable securities laws. Investors should
not place undue reliance on forward-looking statements.
Forward-looking statements contained in this press release are
expressly qualified by this cautionary statement.
Financial Outlook
The Company and its management believe that the sales and
anticipated sales figures contained in this press release are
reasonable as of the date hereof and are based on management's
current views, strategies, expectations, assumptions and forecasts,
and have been calculated using accounting policies that are
generally consistent with the Company's current accounting
policies. These estimates are considered future-oriented financial
outlooks and financial information (collectively, "FOFI") under
applicable securities laws. These estimates and any other FOFI
included herein have been approved by management of the Company as
of the date hereof. Such FOFI are provided for the purposes of
presenting information about management's current expectations and
goals relating to the benefits of and increased sales of Adjupharm
due to the partial legalization of cannabis in Germany. However, because this information is
highly subjective and subject to numerous risks, including the
risks discussed above under "Disclaimer for Forward Looking
Statements", it should not be relied on as necessarily indicative
of future results. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
FOFI prove incorrect, actual results may vary materially from those
described herein as intended, planned, anticipated, believed,
estimated or expected. Although management of the Company has
attempted to identify important risks, uncertainties and factors
which could cause actual results to differ materially, there may be
others that cause results not to be as anticipated, estimated or
intended. The Company disclaims any intention or obligation to
update or revise any FOFI, whether as a result of new information,
future events or otherwise, except as required by securities
laws.
1. https://www.cannabisbusinesstimes.com/news/california-cannabis-market-sales-taxes-billion-2024/.
2. Insight Health. German Market Data. 2023 Full Year
Results.
3.
https://eudragmdp.ema.europa.eu/inspections/gmpc/searchGMPCompliance.do.
Logo:
https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg
Company Contacts:
Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
a.taranko@imcannabis.de
Oren Shuster, CEO
IM Cannabis Corp.
info@imcannabis.com
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SOURCE IM Cannabis Corp.