Cannabis
James E. Wagner Cultivation Reports Fiscal Fourth Quarter and Full Year 2019 Financial Results
KITCHENER, Ontario, Dec. 10, 2019 (GLOBE NEWSWIRE) — James E. Wagner Cultivation Corporation (“JWC” or the “Company”) (TSX VENTURE: JWCA; OTCQX: JWCAF), a premium cannabis brand focused on producing clean, consistent cannabis grown using its advanced and proprietary GrowthSTORM™ aeroponic platform, reported financial results for its fiscal fourth quarter and year ended September 30, 2019. Dollar amounts are in Canadian dollars.
Fiscal Q4 2019 Corporate Highlights
Financial Highlights
Management Commentary
“Q4 was another strong quarter of growth and expansion at JWC,” commented Nathan Woodworth, JWC president and CEO. “It capped an exciting year where we demonstrated tremendous success in growing clean, consistent cannabis on an increasingly larger scale and with greater efficiency.
“Our yield per plant continues to set industry records. For the full fiscal year, our average yield per plant was 247 grams — far above our closest competitors. In the fourth quarter, we did even better, averaging 260 grams per plant. This reflects how we have been able to increase our forecasted annual production capacity by 17% as the result of further refinements of our advanced GrowthSTORM aeroponic system.
“Following a record harvest in September, our revenue growth continued to accelerate in Q4, up 40% sequentially, as we continued along a measured path toward profitability and full operational capacity. We have implemented a systematic plan to grow our capacity in phases and in accordance with market demand. So, as we continue to produce and sell more products and scale our operations, we plan to do so with only incremental increases in expenses. “Combined with our industry-leading yields and lower cost of production due to our unique GrowthSTORM system, we believe we can achieve and sustain highly favorable margins and drive strong profitability over the long term like no other company in the industry. These advantages support our plans to licence our proprietary, patent pending technology to other producers on a global scale.
“As we begin our new fiscal year, we will remain focused on further refining our cultivation process, forging new partnerships, creating new revenue streams and scaling our business. We believe this will continue to drive revenue growth and profitability over the coming quarters, and keep us on track for another year of record growth in 2020.”
Summary Financial Results
For the fourth quarter of fiscal 2019, net revenue from sales totaled a record $1.0 million, up 40% sequentially from $730,000 in the previous fiscal quarter, and compared to $57,600 in the same year-ago quarter.
Revenues for the fiscal full year increased to a record $2.8 million from $57,600 in fiscal 2018. Net and comprehensive loss was $3.1 million or $(0.03) per share in fiscal Q4 2019, compared to $434 thousand or $(0.01) per share in the previous fiscal quarter and $2.3 million or $(0.03) per share in fiscal Q4 2018.
Net and comprehensive loss totaled $9.2 million or $(0.10) per share in fiscal 2019, improving from $10.3 million or $(0.14) per share in fiscal 2018.
Cash and equivalents at September 30, 2019, totaled $1.3 million compared to $3.8 million at June 30, 2019, and $8.5 million at September 30, 2018. The decrease in cash is attributable to purchase of capital assets and cash used in operations.
Subsequent to the end of the fourth quarter, JWC entered into an amended and restated loan agreement with Trichome Financial Corp. dated November 6, 2019, pursuant to which Trichome Financial Corp. agreed to loan JWC $4 million in two tranches. The Company has received the first tranche in the amount of $2.85 million. The second tranche in the amount of $1.15 million will be advanced to the Company upon completion of certain conditions precedent set out in the loan agreement.
Outlook Inventories totaled approximately 561 kg of dried cannabis and 149 liters of formulated oil at the end of fiscal Q4 2019. These products will be sold in the first and second quarter of fiscal 2020.
The Company expects to begin selling cannabis products through recreational channels in Q2 of fiscal 2020, to further develop customer demand, as it continues scaling JWC2 towards full production capacity.
In fiscal Q2 2020, the Company expects to be revenue positive (cash flow positive), along with positive net and comprehensive income. By Q3 2020, management expects revenue growth to drive strong gross margins, positive cash flow, and net and comprehensive income.
Additional Information
Additional details of the Company’s financial results are available in the financial statements and the management’s discussion and analysis as filed under JWC’s profile on SEDAR (www.sedar.com) and available on the Company’s website at www.jwc.ca. Conference Call
On December 10, 2019, the Company will host a conference call to discuss these results, followed by a question and answer period, as specified below:
Date: Tuesday, December 10, 2019 The call will be webcast live and available for replay here, as well as via a link in the “Investors” section of the Company’s website at www.jwc.ca/investors.
Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566. A telephone replay of the call will be available from 8:00 p.m. Eastern time on December 10, 2019, until December 24, 2019:
Toll-free replay number: 1-844-512-2921 About James E. Wagner Cultivation Corporation
James E. Wagner Cultivation Corporation’s wholly owned subsidiary is a Licenced Producer under the Cannabis Regulations, formerly the Access to Cannabis for Medical Purposes Regulations (“ACMPR”). JWC is a premium cannabis brand, focusing on producing clean, consistent cannabis. JWC uses its advanced and proprietary Dual Droplet™ aeroponic platform named GrowthSTORM™.
JWC was founded as a family company and is based on family values. JWC began as a collective of patients and growers under the Marihuana Medical Access Regulations (the precursor to ACMPR). Since its inception, JWC has remained focused on providing the best possible patient experience. JWC’s operations are based in Kitchener, Ontario. Learn more at www.jwc.ca. Notice Regarding Forward-Looking Statements
This press release contains statements including forward-looking information for purposes of applicable securities laws (“forward-looking statements”) about JWC and its business and operations which include, among other things, statements regarding increased production capacity at JWC’s facilities, the financial impact of additional licenced flowering space at JWC’s facilities, increased yield of cannabis flower, the availability of debt financing, sales of cannabis in the recreational market, increasing customer demand, the financial growth of JWC, management’s expectation of JWC achieving break-even, turning net and comprehensive income positive and turning revenue positive and the timing for the achievement of such milestones. The forward-looking statements can be identified by the use of such words as “will”, “expected”, “approximately”, “may”, “could”, “would” or similar words and phrases. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those implied in the forward-looking statements. For example, risks include risks regarding the cannabis industry, economic factors, the equity markets generally, building permit related risks and risks associated with growth and competition as well as the risks identified in JWC’s Annual Information Form dated April 3, 2019, available under the JWC’s profile at www.sedar.com. Although JWC has attempted to identify important factors that could result in actual actions, unanticipated events may cause results to differ materially from those described in forward-looking statements, and there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and are based on current assumptions which management believes to be reasonable. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Company Contact Investor Relations 
Q4 2019
Q4 2018
% Change
Q3 2019
%Change
Net Revenues
$1,024,515
57,612
1,792%
730,150
40%
Operating expenses
1,704,537
2,424,844
30%
2,707,679
37%
Loss from operations
(2,790,773)
(2,365,571)
-18%
(291,525)
-857%
Net and comprehensive loss
(3,087,790)
(2,306,551)
-34%
(433,908)
-612%
Net and comprehensive loss per share
(0.03)
(0.03)
0%
(0.01)
200%
FY2019
FY2018
% Change
Net Revenues
2,821,267
57,612
4,797%
Operating expenses
10,077,616
9,866,095
2%
Loss from operations
(8,956,109)
(9,005,596)
1%
Net and comprehensive loss
(9,252,253)
(10,313,920)
10%
Net and comprehensive loss per share
(0.10)
(0.14)
26%
Sept. 30, 2019
Sept. 30, 2018
% Change
Cash & cash equivalents
1,266,611
8,504,790
-85%
Agriculture produce & biological assets
6,026,988
2,607,433
131%
Other working capital
1,668,867
604,172
176%
Non-current assets
19,057,907
5,475,701
248%
Other liabilities and long-term debt
7,172,475
3,411,615
110%
Shareholder’s equity
15,111,888
19,639,468
-23%
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-877-407-9208
International dial-in number: 1-201-493-6784
Conference ID: 13697211
International replay number: 1-412-317-6671
Replay ID: 13697211
Nathan Woodworth
President & CEO
Tel: (519) 594-0144 x421
Email: [email protected]
Jonathan Leuchs
CMA
Tel: (949) 432-7566
Email: [email protected]
James E. Wagner Cultivation Corporation
Condensed Consolidated Statement of Loss and Comprehensive Loss
September 30, 2019
September 30, 2018
Revenue
Wholesale
$
2,466,320
$
–
Medical
422,977
57,612
Excise tax
(68,030)
–
Net revenue from sales
2,821,267
57,612
Cost of sales
2,184,072
28,873
Gross margin before fair value adjustments
637,195
28,739
Realized fair value amount on inventory sold
(2,356,183)
(12,979
)
Fair value adjustment to biological assets
3,040,495
844,739
Gross margin
1,321,507
860,499
Expenses
General and administrative
9,079,832
7,266,409
Advertising and promotion
527,891
362,454
Depreciation and amortization
374,493
243,508
Stock based compensation
95,400
198,000
Public company listing
–
1,795,724
10,077,616
9,866,095
Loss from operations
(8,756,109)
(9,005,596)
Non-cash gain on debt modification
229,945
–
Interest and other revenue
115,539
174,013
Interest and financing costs
(641,628)
–
Fair value change in contingently issuable shares
–
(1,482,337
)
(296,144)
(1,308,324
)
Loss and comprehensive loss
$
(9,052,253)
$
10,313,920
)
Loss per share Basic and Diluted
$
(0.09)
$
(0.14
)
Condensed Consolidated Interim Statement of Financial Position
September 30, 2019
September 30, 2018
Assets
Current
Cash and cash equivalents
$
1,266,611
$
8,504,790
Short term investments
–
6,017,153
Funds in trust
100,000
140,165
Accounts receivable
1,244,390
120,255
Other receivables
324,477
343,752
Inventory
3,371,016
1,532,604
Biological assets
2,855,973
1,074,829
Prepaid expenses and deposits
946,898
943,299
10,109,365
18,676,847
Property, plant and equipment
18,946,075
5,331,068
Intangible assets
111,832
144,633
19,057,907
5,475,701
$
29,167,272
$
24,152,548
Liabilities and Shareholders’ Equity (Deficiency)
Current
Accounts payable and accrued liabilities
$
2,824,479
$
1,098,212
Current portion of long-term debt
3,858,430
3,253
6,682,909
1,101,465
Long-term debt
3,073,819
5,528
Royalty liability
2,498,150
2,489,102
Lease inducement
1,600,506
916,985
7,172,475
3,411,615
Shareholders’ equity
Share capital
36,860,850
30,446,310
Contributed surplus
2,510,919
4,200,786
Retained earnings (deficit)
(24,059,881
)
(15,007,628
)
15,311,888
19,639,468
$
29,167,272
$
24,152,548
TORONTO and GLIL YAM, Israel, Sept. 11, 2024 /PRNewswire/ — IM Cannabis Corp. (“IMC” or the “Company“) (NASDAQ: IMCC) (CSE: IMCC), a leading medical cannabis company with operations in Israel and Germany, is pleased to announce that Mr. Shmulik Arbel has been appointed to the Company’s board of directors (the “Board“) effective September 9, 2024. Mr. Arbel brings a wealth of experience in strategic plans that drive profitability, as well as, finance and corporate governance, further strengthening the company’s commitment to driving growth while focusing on sustainable profitability.
“We are thrilled to welcome Shmulik to our Board of Directors,” said Oren Shuster, Chief Executive Officer of IM Cannabis. “Shmulik’s extensive international experience at Leumi, coupled with his proven track record in banking and finance will be invaluable as we continue to deliver on our strategic initiatives.”
Mr. Arbel retired as Deputy CEO from Leumi, Israel’s largest banking group, in April 2023, where he was instrumental in business growth and leading the service revolution. With over 25 years of experience at Leumi, Arbel has held senior roles throughout the organization, such as head of retail banking, head of the corporate division, and as chairman of Leumi UK. With key roles in Israel, New York and London, Mr. Arbel has a wide view on international business.
“I am honored to join the Board of Directors at IMCC,” said Mr. Arbel. “I look forward to leveraging my experience in banking and finance, providing guidance as IMCC continues to establish itself as the go-to brand in the cannabis world. I look forward to contributing to the company’s growth.”
Arbel holds a BA and MBA from Tel Aviv University.
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. The Company has focused its resources to achieve sustainable and profitable growth in its highest value markets, Israel and Germany. 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 United States 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: the stated benefits Mr. Arbel’s appointment, including the further strengthening the Company’s commitment to driving growth in the German market while focusing on sustainable profitability; and Mr. Arbel’s international experience and track record in banking and finance will be invaluable to the Company.
Forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to: the Company’s ability to realize upon the stated benefits Mr. Arbel’s appointment; and Mr. Arbel’s international experience and track record in banking and finance becoming invaluable to the Company.
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 its subsidiaries (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; risks surrounding war, conflict and civil unrest in Eastern Europe and the Middle East, including the impact of the Israel-Hamas war on the Company, its operations and the medical cannabis industry in Israel; risks associated with the Company focusing on the Israel and Germany markets; the inability of the Company to achieve sustainable profitability and/or increase shareholder value; the inability of the Company to actively manage costs and/or improve margins; the inability of the company to grow and/or maintain sales; the inability of the Company to meet its goals and/or strategic plans; the inability of the Company to reduce costs and/or maintain revenues; the Company’s inability to take advantage of the legalization of medicinal cannabis in Germany; and the Company’s inability to realize upon the stated benefits Mr. Arbel’s appointment; and Mr. Arbel’s international experience and track record in banking and finance not becoming valuable to the Company.
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.
Company Contact:
Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
[email protected]
Oren Shuster, CEO
IM Cannabis Corp.
[email protected]
Logo: https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/im-cannabis-announces-appointment-of-shmulik-arbel-to-board-of-directors-302244961.html
Cannabis
Europe Medical Cannabis Market Forecast 2024-2032: Tilray, Aurora Cannabis, and GW Pharmaceuticals Dominate the Market Landscape
Dublin, Aug. 29, 2024 (GLOBE NEWSWIRE) — The “Europe Medical Cannabis Oil Market Size, Industry Dynamics, Opportunity Analysis and Forecast 2024-2032.” report has been added to ResearchAndMarkets.com’s offering.
The Europe Medical Cannabis Oil market is poised for significant growth, projected to escalate from US$ 0.91 billion in 2023 to US$ 2.40 billion by 2032, advancing at a CAGR of 12.08%. In this comprehensive research report, the market is analyzed by:
- Derivatives;
- Source;
- Application;
- Route of Administration;
- End-user;
- Distribution Channel; and
- Country.
Market Highlights Identified in the Report
- Progressive legalization across Europe is creating a favorable regulatory environment, enhancing market expansion for medical cannabis oil products.
- Germany leads the market with a robust infrastructure and supportive regulations, while other countries like the UK, Italy, and Spain show significant growth potential based on evolving regulatory landscapes and market dynamics.
- Key players such as Tilray, Aurora Cannabis Inc., and GW Pharmaceuticals dominate the market, emphasizing research, strategic partnerships, and innovation to maintain competitive edge amidst evolving industry dynamics.
The medical cannabis oil market has experienced substantial growth as legalization and acceptance of cannabis-based treatments expand globally. Cannabis oil, derived from the cannabis plant through extraction methods, contains cannabinoids such as THC and CBD, known for their therapeutic properties. Increasing recognition of cannabis oil’s potential in alleviating symptoms of various medical conditions, including chronic pain, epilepsy, and anxiety disorders, has driven its adoption in medical settings.
Governments in several countries are progressively legalizing medical cannabis, creating a conducive regulatory environment for market expansion. Additionally, growing consumer awareness about alternative and natural therapies has fueled the demand for cannabis oil products. The market is characterized by diverse product offerings, including full-spectrum and CBD-isolate oils, catering to different therapeutic needs and preferences.
Despite regulatory challenges and stigma associated with cannabis, the medical cannabis oil market continues to evolve, driven by ongoing research, favorable legislative changes, and shifting attitudes toward cannabis-based therapies in healthcare.
Regional Insights
Germany is likely to maintain its leadership position in the European medical cannabis oil market due to its established infrastructure, supportive regulations, and strong healthcare system. Germany legalized medical cannabis in 2017, giving the market a head start compared to many other European countries. This established infrastructure and experience position Germany as a leader in the field. As awareness and acceptance of medical cannabis increase, the number of patients seeking treatment in Germany is steadily rising. This fuels market growth and incentivizes further investment in research and development.
Germany’s regulatory framework for medical cannabis is considered relatively patient-friendly compared to some other European countries. This facilitates access for patients with qualifying conditions. The UK legalized medical cannabis in 2018 and is experiencing an increase in patient access programs. This, coupled with ongoing research, could lead to significant market growth. Italy legalized medical cannabis in 2006 but has faced challenges with availability. As regulations become more streamlined and patient access expands, the Italian market holds significant growth potential. Spain has a well-established medical cannabis industry with a focus on domestic production. As regulations evolve and export opportunities increase, the Spanish market could see a boost.
Competitive Landscape
The Medical Cannabis Oil market is characterized by a vigorous competitive landscape, with prominent entities like Tilray, Aurora Cannabis Inc., GW Pharmaceuticals, Almiral, Bedrocan, and others at the forefront, collectively accounting for approximately 41 % of the overall market share. This competitive milieu is fueled by their intensive efforts in research and development as well as strategic partnerships and collaborations, underscoring their commitment to solidifying market presence and diversifying their offerings.
The primary competitive factors include pricing, product caliber, and technological innovation. As the Medical Cannabis Oil industry continues to expand, the competitive fervor among these key players is anticipated to intensify. The impetus for ongoing innovation and alignment with evolving customer preferences and stringent regulations is high. The industry’s fluidity anticipates an uptick in novel innovations and strategic growth tactics from these leading corporations, which in turn propels the sector’s comprehensive growth and transformation.
Key Topics Covered
Chapter 1. Research Framework
Chapter 2. Research Methodology
Chapter 3. Executive Summary: Europe Medical Cannabis Oil Market
Chapter 4. Europe Medical Cannabis Oil Market Overview
Chapter 5. Europe Medical Cannabis Oil Market Analysis, by Derivatives
Chapter 6. Europe Medical Cannabis Oil Market Analysis, by Source
Chapter 7. Europe Medical Cannabis Oil Market Analysis, by Application
Chapter 8. Europe Medical Cannabis Oil Market Analysis, by Route of Administration
Chapter 9. Europe Medical Cannabis Oil Market Analysis, by End-user
Chapter 10. Europe Medical Cannabis Oil Market Analysis, by Distribution Channel
Chapter 11. Europe Medical Cannabis Oil Market Analysis, by Country
Chapter 12. The UK Medical Cannabis Oil Market Analysis
Chapter 13. Germany Medical Cannabis Oil Market Analysis
Chapter 14. The Netherlands Medical Cannabis Oil Market Analysis
Chapter 15. Italy Medical Cannabis Oil Market Analysis
Chapter 16. Spain Medical Cannabis Oil Market Analysis
Chapter 17. Poland Medical Cannabis Oil Market Analysis
Chapter 18. Rest of Europe Medical Cannabis Oil Market Analysis
Chapter 19. Company Profiles (Company Overview, Financial Matrix, Key Product Landscape, Key Personnel, Key Competitors, Contact Address, and Business Strategy Outlook)
A selection of companies mentioned in this report includes, but is not limited to:
- Aurora Cannabis Inc.
- Bedrocan
- Biocann
- BIOTA Biosciences LLC
- Cannamedical
- Mary Jane CBD
- Sanity Group GmbH
- Tilray
- Valcon Medical
For more information about this report visit https://www.researchandmarkets.com/r/dh7q46
About ResearchAndMarkets.com
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