Cannabis

James E. Wagner Cultivation Reports Fiscal First Quarter 2020 Financial Results

Published

5 years ago

February 21, 2020

KITCHENER, Ontario, Feb. 21, 2020 (GLOBE NEWSWIRE) — James E. Wagner Cultivation Corporation (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 first quarter ended December 31, 2019. Dollar amounts are in Canadian dollars.
Fiscal Q1 2020 Corporate HighlightsReceived licensing amendment from Health Canada to double JWC2’s licensed production capacity to 44,500 square feet, which would be an annualized production capacity of more than 9,000 kilos of dried cannabis.Average yield per plant increased to 262 grams in the first quarter of 2020, versus the average yield of 210 in the same year-ago period.Launched plans to open a 2,000 square farm gate retail store adjoining the company’s JWC2 flagship facility, representing a new direct-to-consumer sales channel for the company. The store is anticipated to be the Waterloo region’s first retail cannabis store located on a licensed cultivation site, and will serve the area’s 500,000 inhabitants. In January, the company submitted a cannabis retail operator license application to the Alcohol and Gaming Commission of Ontario.Received a license amendment from Health Canada for the sale and production of cannabis extracts, edibles and topicals at the company’s JWC1 facility, allowing JWC to add kief, rosins, and pre-rolls in various quantity formats to its product portfolio. Introduced four new cannabis strains grown using the company’s advanced GrowthSTORM™ aeroponic platform: King Tut, Dark Helmet, West Coast Sour Diesel, and Hash Plant.Engaged Kindred Partners to serve as the exclusive broker for JWC adult-use cannabis products in Canada.Entered a supply and manufacturing agreement with CannaCure Corporation, a wholly-owned subsidiary of Heritage Cannabis Holdings, whereby CannaCure formulates and fills JWC’s vape cartridges, for both recreational and medical cannabis markets.Began collaboration and research trial with Fluence Bioengineering for the performance testing of Fluence’s VYPR 2p Broad Spectrum LED lighting solution. The trial will assess if the lighting solution can further improve JWC’s already high level of energy efficiency and help to further optimize cultivation performance.Financial HighlightsRevenues totaled $264,000 in fiscal Q1 2020, down 74% sequentially from $1,025,000 in fiscal Q4 2019, and compared to $550,000 in fiscal Q1 2019. The decline in revenue was due primarily to management’s response to market conditions and the strategic decision to defer sales to the second quarter to maximize the revenue potential and gross margin of produced goods. This decision was reflected in Unrealized Fair Value on Finished Goods in the amount of $2.4 million, as compared to none at the end of the previous quarter.Loss and comprehensive loss for fiscal Q1 reduced 48% to $1.2 million or $(0.01) per share.Gross margin totaled $1.8 million, compared to $3,000 in in the same year-ago quarter.Operating expenses in fiscal Q1 2020 were $2.5 million, a 46% decrease from fiscal Q4 2019, and a 5% increase from fiscal Q1 2019.Received private placement equity funding of approximately $1 million.Secured a $4 million loan facility available in two tranches, with $2,850,000 received during the first quarter and the remaining portion received in the subsequent quarter. Obtained convertible security funding for up to $10 million available in two tranches, with $2 million drawn in the subsequent quarter and the remainder available subject to mutual agreement with the lender. Management Commentary“During our first fiscal quarter of 2020 we made tremendous strides in many areas of our business designed to better position JWC for success in the new year. We focused our efforts on deriving the maximum value from all available resources and avenues, including our biological assets, branded products, key partnerships, proprietary technologies and newly established sales channels.“Our financial results for the quarter demonstrated that despite our strengthening platform, we were not immune to the challenges of an industry that is still evolving and striving for balance. While revenue declined substantially, this was largely purposeful, reflecting what we see as temporary conditions that are now set to pivot and launch in the opposite direction in the current quarter.“During fiscal Q1, we implemented a strategic response to the market. A combination of number of factors, primarily oversupply and the lack of legal sales outlets continued to drive the illicit market. As a result, our wholesale partners were unable to buy our products at historical prices, driving gross margins into the negative territory. So, we made the strategic decision to hold back on sales and preserve our biological assets until the oversupply subsided and the recreational market opened.“Our ability to attract various sources of capital even in this challenging environment demonstrated our strong value proposition and gave us the flexibility to pursue our strategy. We dedicated our resources to the development of our Cannabis 2.0 products, positioning ourselves to capture the anticipated growth in the recreational market in the current quarter. This has also included the formation of a variety of new partnerships and obtaining key regulatory approvals.“Experts are now predicting a three times growth in industry-wide sales in 2020, as the number of retail stores steadily increase as a result of eased regulations and the oversupply subsides. We expect this to support the sale of significant volumes of our products in Q2 and beyond.“Our primary focus will remain on becoming a highly successful cultivator and seller of clean, consistent cannabis. Our financial outlook is unchanged for fiscal Q2 and Q3, as we reiterate below. 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 strong growth over the long term.”For the first quarter of fiscal 2020, revenues totaled a $264,000, decreasing 74% from $1,025,000 in the previous fiscal quarter, and by 52% from $550,000 in the same year-ago quarter.General and administrative costs increased to $2.1 million sequentially, and remained equal marginally at $2.1 million compared to the same year-ago period. Increases in salary and wages expense to $1.0 million in first quarter of fiscal 2020 from $622,000 in the same year-ago quarter was offset by the elimination of in rent expense due to the adoption of IFRS 16. Under IFRS 16, leases and rent expenses are no longer included in the income statement, but instead as a reduction to lease liabilities in the statement of financial position.Operating expense totaled $2.5 million, increasing 46% from $1.7 million in the previous quarter, and up 5% from the same year-ago quarter. Excluding two one-time items in Q4 2019 (the transfer of year to date production expense to inventory and the receipt of scientific research and experimental development (“SRED”) tax credit), operating expense decreased 4% from the previous quarter. The increase from the prior year is consistent with the company’s plans for facility expansion, including increasing employee headcount and preparations for the new farm-gate retail store.Biological assets totaled $3.6 million at the end of the first quarter 2020, compared to $2.9 million at the end of the previous quarter and $1.5 million at the end of the year-ago quarter.Net and comprehensive loss was $1.2 million or $(0.01) per share in fiscal Q1 2020, compared to $3.1 million or $(0.03) per share in the previous fiscal quarter and $2.3 million or $(0.03) per share in fiscal Q1 2019.Cash and equivalents at December 31, 2019 totaled $321,000 compared to $1.3 million at September 30, 2019 and $2.9 million at December 31, 2018. The decrease in cash is attributable to cash used in operations and the reduction in accounts payable.The company raised $1 million in equity and borrowed $2.85 million in the fiscal first quarter. Subsequent to the quarter, it raised an additional $3.3 million in equity financing and convertible securities, and borrowed another $1.15 million. The company has the option, upon mutual agreement with the lender, to secure an additional $8 million in operating capital through existing funding vehicles, in addition to other means. The company believes it will sustain sufficient liquidity to meet its financial commitments and for its growth objectives to be achieved.OutlookInventories totaled approximately 1,199 kg of dried cannabis and 102 liters of formulated oil at the end of fiscal Q1 2020. These products are planned for sale in the second and third quarter of fiscal 2020.The company plans to begin selling cannabis products through recreational channels before the end of fiscal Q2 2020.In fiscal Q2 2020, the company expects to be revenue positive (cash flow positive), along with generating positive net and comprehensive income. By Q3 2020, it expects revenue growth to drive strong gross margins, positive cash flow, and net and comprehensive income.Additional InformationAdditional 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 CallOn February 21, 2020, the Company will host a conference call to discuss these results, followed by a question and answer period, as specified below:Date: Friday, February 21, 2020
Time: 3:00 p.m. Eastern time (12:00 p.m. Pacific time)
Toll-free dial-in number: +1 (877) 407-9208
International dial-in number: +1 (201) 493-6784
Conference ID: 13698939The conference call will be webcast live and available for replay here. 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 6:00 p.m. Eastern time on the same day until March 6, 2020:Toll-free replay number: +1 (844) 512-2921
International replay number: +1 (412) 317-6671
Replay ID: 13698939About James E. Wagner Cultivation CorporationJames E. Wagner Cultivation Corporation’s wholly owned subsidiary is a Licensed 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 using an advanced and proprietary aeroponic platform named GrowthSTORM™. 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 is a family-founded company with deep roots planted in the local community. JWC’s operations are based in Kitchener, Ontario. Learn more at www.jwc.ca.Notice Regarding Forward-Looking StatementsThis 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
Nathan Woodworth
President & CEO
Tel: (519) 594-0144 x421
Email: [email protected]Investor Relations
Jonathan Leuchs
CMA
Tel: (949) 432-7566
Email: [email protected]

Cannabis

IM Cannabis Announces Appointment of Shmulik Arbel to Board of Directors

Published

1 day ago

September 11, 2024

CISION (PR Newswire)

im-cannabis-announces-appointment-of-shmulik-arbel-to-board-of-directors

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

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Cannabis

One World Products Issues Shareholder Update Letter

Published

1 day ago

September 11, 2024

GlobeNewswire

Cannabis

Europe Medical Cannabis Market Forecast 2024-2032: Tilray, Aurora Cannabis, and GW Pharmaceuticals Dominate the Market Landscape

Published

2 weeks ago

August 29, 2024

GlobeNewswire

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

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