Cannabis
China Health Industries Holdings, Inc. Reports Financial Results for the Third Quarter Ended March 31, 2020
Harbin, China–(Newsfile Corp. – May 15, 2020) – China Health Industries Holdings, Inc. (OTCQB: CHHE) (“China Health Industries”, the “Company” or “Us”), a holding company with the operations in its subsidiaries in China, specializing in research & development, production, marketing and distribution of hemp derivative products, medicines and health supplement products, today announced the financial results for its third quarter ended March 31, 2020.
Mr. Xin Sun, Chief Executive Officer and Chairman of China Health Industries, commented, “We are pleased to report our financial results for the third quarter of our 2020 fiscal year. Our revenue increased by 10.03% for the three months ended March 31, 2020 compared to the same period of the previous year as the increased demand of hemp polypeptide and hemp protein powder by the market. Affected by COVID-19, the company ceased production in February 2020, and the company has obtained government approval for reinstatement in early March. In the short term, our business could be adversely affected by the effects of COVID-19, and the company’s sales revenue growth would be affected, but in the medium to long term it has no impact on sales revenue. Because the company sells products such as hemp protein powder and hemp polypeptide, as the understanding of COVID-19 continues to deepen, consumers will realize that strengthening their own immunity and resistance is the effective way to fight COVID-19, and the consumers will pay attention to strengthen of physical fitness, the consumption of protein powder, protein peptides and other health foods, and our products will be more popular with customers.”
Third Quarter of Fiscal 2020 Selected Financial Results
For the Three Months Ended March 31, 2020:
| March 31, | March 31, | |||||||||||||||||
| 2020 | 2019 | Variance | % | |||||||||||||||
| Revenues | $ | 2,423,720 | $ | 2,202,739 | $ | 220,981 | 10.03 | % | ||||||||||
| Humankind | 2,421,935 | $ | 2,192,680 | $ | 229,255 | 10.46 | % | |||||||||||
| HLJ Huimeijia | 1,785 | 10,059 | (8,274 | ) | (82.25 | )% | ||||||||||||
| Cost of Goods Sold | $ | 566,692 | $ | 506,623 | $ | 60,069 | 11.86 | % | ||||||||||
| Humankind | 565,409 | $ | 492,569 | $ | 72,840 | 14.79 | % | |||||||||||
| HLJ Huimeijia | 1,283 | 14,054 | (12,771 | ) | (90.87 | )% | ||||||||||||
| Gross Profit | $ | 1,857,028 | $ | 1,696,116 | $ | 160,912 | 9.49 | % | ||||||||||
| Humankind | 1,856,526 | 1,700,111 | 156,415 | 9.20 | % | |||||||||||||
| HLJ Huimeijia | 502 | (3,995 |
)  |
4,497 | 112.57 | % | ||||||||||||
| Net Income | $ | 992,722 | $ | 767,929 | 224,793 | 29.27 | % | |||||||||||
| Net Income Per Share | 0.0151 | 0.0117 | 0.0034 | 29.06 | % | |||||||||||||
Revenue
Total revenues increased by $220,981 or 10.03% for the three months ended March 31, 2020, as compared to the same period in 2019. The increase in revenues was primarily due to an increase of $229,255 or 10.55% in Humankind’s revenues for the three months ended March 31, 2020, as compared to the same period in 2019. The increase in Humankind’s sales revenues was primarily due to the increased demand of Hemp Polypeptide and Hemp Protein Powder.
Cost of Goods Sold
Our total cost of sales increased by $60,069 or 11.86% for the three months ended March 31, 2020 as compared to the same period in 2019. The increase in the overall cost of sales was attributed to the decrease of $72,840 or 14.79% Humankind’s cost of sales for the three months ended March 31, 2020 as compared to the same period in 2019. This increase aligned with the increase in sales volume of products sold by Humankind. The growth ratio of cost of goods sold was consistent with the figure of sales for the three months ended March 31, 2020 as compared to the same period in 2019.
Gross Profit
Our gross margin increased by $160,912 or 9.49% for the three months ended March 31, 2020 as compared to the same period in 2019. This change was consistent with the change of sales and costs in Humankind. The gross margin of HLJ Huimeijia increased by $4,497 or 112.57% for the three months ended March 31, 2020 as compared to the same period in 2019. The increase was primarily due to that HLJ Huimeijia completed a processing transaction for drying raw materials of traditional Chinese medicine of which the gross margin was higher during the three months ended March 31, 2020.
Net Income and Net Income Per Share
Net income was $992,722 for the three months ended March 31, 2020, as compared to $767,929 for the three months ended March 31, 2019. This increase of $224,793 in net income was primarily attributable to an increase of gross margin.
Net income per share was $0.0151 for the three months ended March 31, 2020, and net income per share was $0.0117 for the three months ended March 31, 2019, respectively. This increase was primarily a result of the aforementioned increase in net profit.
For the Nine Months Ended March 31, 2020:
| March 31, | March 31, | |||||||||||||||||
| 2020 | 2019 | Variance | % | |||||||||||||||
| Revenues | $ | 7,899,632 | $ | 7,058,721 | $ | 840,911 | 11.91 | % | ||||||||||
| Humankind | 7,862,018 | $ | 7,003,073 | $ | 858,945 | 12.27 | % | |||||||||||
| HLJ Huimeijia | 37,614 | 55,648 | (18,034 | ) | (32.41 | )% | ||||||||||||
| Cost of Goods Sold | $ | 1,762,098 | $ | 1,668,440 | $ | 93,658 | 5.61 | % | ||||||||||
| Humankind | 1,721,279 | $ | 1,599,002 | $ | 122,277 | 7.65 | % | |||||||||||
| HLJ Huimeijia | 40,819 | 69,438 | (28,619 | ) | (41.22 | )% | ||||||||||||
| Gross Profit | $ | 6,137,534 | $ | 5,390,281 | $ | 747,253 | 13.86 | % | ||||||||||
| Humankind | 6,140,739 | 5,404,071 | 736,668 | 13.63 | % | |||||||||||||
| HLJ Huimeijia | (3,205 | ) | (13,790 | ) | 10,585 | 76.76 | % | |||||||||||
| Net Income | $ | 3,175,880 | 2,517,410 | 685,470 | 27.23% | |||||||||||||
| Net Income Per Share | 0.0485 | 0.0384 | 0.0101 | 26.30% | ||||||||||||||
Revenue
Total revenues increased by $849,811 or 11.91% for the nine months ended March 31, 2020, as compared to the same period in 2019. The increase in revenues was primarily due to an increase of $858,945 or 12.27% in Humankind’s revenues, which was primarily due to the increased demand of Hemp Polypeptide and Hemp Protein Powder.
Cost of Goods Sold
Our total cost of sales increased by $93,658 or 5.61% for the nine months ended March 31, 2020, as compared to the same period in 2019. The increase in the overall cost of sales was mainly due to the cost of sales of Humankind increased by$122,277 or 7.65%, which was consistent with the growth of sales for the nine months ended March 31, 2020 as compared to the same period in 2019.
Gross Profit
Our gross margin increased by $747,253, from $5,390,281 for the nine months ended March 31, 2019 to $6,137,534 for the nine months ended March 31, 2020. This growth was consistent with the increase of sales and costs in Humankind. The gross margin of HLJ Huimeijia increased by $10,585 or 76.76% for the nine months ended March 31, 2020 as compared to the same period in 2019. The increase was primarily due to that HLJ Huimeijia completed a processing transaction for drying raw materials of traditional Chinese medicine of which the gross margin was higher during the nine months ended March 31, 2020.
Net Income (Loss) and Net Income (Loss) Per Share
Net income was $3,175,880 for the nine months ended March 31, 2020, as compared to $2,517,410 for the nine months ended March 31, 2019. This increase of $685,470 was primarily attributable to an increase of gross margin.
Net income per share was $0.0485 for the nine months ended March 31, 2020 and $0.0384 for the nine months ended March 31, 2019. This increase was primarily a result of the above-mentioned increase in net income.
Liquidity and Capital Resources
The following table summarizes our cash and cash equivalents positions, our working capital, and our cash flow activities as of March 31, 2020 and June 30, 2019 and for the nine months ended March 31, 2020 and 2019:
| March 31, 2020 |
June 30, 2019 |
|||||||
| Cash and cash equivalents | $ | 36,593,609 | $ | 35,219,487 | ||||
| Working capital | $ | 32,539,427 | $ | 29,595,941 | ||||
| Inventories | $ | 840,597 | $ | 954,019 | ||||
| 2020 | 2019 | |||||||
| For the nine months ended March 31: | ||||||||
| Cash provided by (used in): | ||||||||
| Operating activities | $ | 2,044,984 | $ | 3,206,439 | ||||
| Investing activities | $ | (152,362 | ) | $ | (208,581 | ) | ||
| Financing activities | $ | – | $ | – | ||||
Our working capital as of March 31, 2020 was $32,539,427, compared to working capital of $29,595,941 as of June 30, 2019. This increase of $2,943,486 or 9.95% was primarily attributable to the increase of cash and cash equivalents and accounts receivable in the amount of $1,374,122 and $1,614,178, respectively in the nine months ended March 31, 2020.
About Us
China Health Industries Holdings, Inc. is a holding company with the operations in its subsidiaries in China, specializing in research & development, production, marketing and distribution of hemp derivative products, medicines and health supplement products.
China Health Industries owns GMP certified plants and facilities, manufactures 21 CFDA approved medicines and 14 health supplement products covering five kinds of dosage forms, including soft capsule, hard capsule, tablet, granule and oral liquid. Our product series cover hemp derivative foods, hemp derivative medicines, externally used medicines and health foods. For more information about the Company, please visit www.chinahealthindustries.com. The Company routinely posts important information on its website.
Safe Harbor Statement
This press release contains certain statements that may include “forward-looking statements”. All statements other than statements of historical fact included herein are “forward-looking statements”. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes”, “expects” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties; thus, these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission (“SEC”) and available on the SEC’s website (http://www.sec.gov). All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Contact:
Company:
Melody Zhang
IR Contact:
China Health Industries Holdings, Inc.
Tel: 86-451-87170800 ext. 8869
Email: [email protected]
CHINA HEALTH INDUSTRIES HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
March 31, |
June 30, |
|||||
|
ASSETS |
||||||
|
Current assets |
||||||
|
Cash and cash equivalents |
$ |
36,593,609 |
$ |
35,507,535 |
||
|
Accounts receivable, net |
3,601,683 |
1,987,505 |
||||
|
Inventory |
840,597 |
857,239 |
||||
|
Other receivables, net |
31,183 |
28,435 |
||||
|
Advances to suppliers |
205,386 |
8,619 |
||||
|
Prepayments |
– |
15,868 |
||||
|
Total current assets |
41,272,458 |
38,405,201 |
||||
|
Property, plants and equipment, net |
3,774,844 |
3,719,424 |
||||
|
Intangible assets, net |
2,361,198 |
2,782,869 |
||||
|
Construction in progress |
510,522 |
835,452 |
||||
|
Prepayments – Non-Current |
– |
9,709 |
||||
|
Deferred tax assets |
2,169 |
2,235 |
||||
|
Total assets |
$ |
47,921,191 |
$ |
45,754,890 |
||
|
LIABILITIES AND EQUITY |
||||||
|
Current liabilities |
||||||
|
Accounts payable and accrued expenses |
394,530 |
497,084 |
||||
|
Other payables |
26,690 |
74,121 |
||||
|
Advances from customers |
178,272 |
153,613 |
||||
|
Related party debts |
7,241,166 |
6,962,520 |
||||
|
Wages payable |
276,488 |
265,686 |
||||
|
Taxes payable |
615,885 |
619,403 |
||||
|
Total current liabilities |
8,733,031 |
8,572,427 |
||||
|
Equity |
||||||
|
Common stock, ($0.0001 par value per share, 300,000,000 shares authorized, 65,539,737 and 65,539,737 shares issued and outstanding as of March 31, 2020 and June 30, 2019, respectively) |
6,554 |
6,554 |
||||
|
Additional paid-in capital |
521,987 |
521,987 |
||||
|
Accumulated other comprehensive income |
(1,763,837 |
) |
(593,654 |
) |
||
|
Statutory reserves |
38,679 |
38,679 |
||||
|
Retained earnings |
40,384,777 |
37,208,897 |
||||
|
Total stockholders’ equity |
39,188,160 |
37,182,463 |
||||
|
Total equity |
39,188,160 |
37,182,463 |
||||
|
Total liabilities and equity |
$ |
47,921,191 |
$ |
45,754,890 |
||
CHINA HEALTH INDUSTRIES HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
(UNAUDITED)
|
For the Three Months |
For the Nine Months |
|||||||||||||||
|
March 31, |
March 31, |
March 31, |
March 31, |
|||||||||||||
|
REVENUE |
$ |
2,423,720 |
$ |
2,202,739 |
$ |
7,899,632 |
$ |
7,058,721 |
||||||||
|
COST OF GOODS SOLD |
566,692 |
506,623 |
1,762,098 |
1,668,440 |
||||||||||||
|
GROSS PROFIT |
1,857,028 |
1,696,116 |
6,137,534 |
5,390,281 |
||||||||||||
|
OPERATING EXPENSES |
||||||||||||||||
|
Selling, general and administrative expenses |
389,009 |
449,177 |
1,389,300 |
1,469,472 |
||||||||||||
|
Depreciation and amortization expenses |
145,817 |
180,166 |
435,733 |
464,446 |
||||||||||||
|
Total operating expenses |
534,826 |
629,243 |
1,825,033 |
1,933,918 |
||||||||||||
|
INCOME FROM OPERATIONS |
1,322,202 |
1,066,773 |
4,312,501 |
3,456,343 |
||||||||||||
|
OTHER INCOME/(EXPENSES) |
||||||||||||||||
|
Interest income |
31,801 |
28,815 |
93,842 |
83,531 |
||||||||||||
|
Interest expense |
– |
(2 |
) |
(1 |
) |
(5 |
) |
|||||||||
|
Other income/(expenses), net |
(1 |
) |
84 |
(417 |
) |
15,681 |
||||||||||
|
Bank charges |
(186 |
) |
(205 |
) |
(548 |
) |
(914 |
) |
||||||||
|
Total other income, net |
31,614 |
28,692 |
92,876 |
98,293 |
||||||||||||
|
INCOME BEFORE INCOME TAXES |
1,353,816 |
1,095,465 |
4,405,377 |
3,554,656 |
) |
|||||||||||
|
Provision for income taxes |
(361,094 |
) |
(327,536 |
) |
(1,229,497 |
) |
(1,037,246 |
) |
||||||||
|
NET INCOME |
992,722 |
767,929 |
3,175,880 |
2,517,410 |
||||||||||||
|
OTHER COMPREHENSIVE INCOME (LOSS) |
||||||||||||||||
|
Foreign currency translation loss |
(677,194 |
) |
895,253 |
(1,170,183 |
) |
(447,807 |
) |
|||||||||
|
COMPREHENSIVE INCOME |
315,528 |
1,663,182 |
2,005,697 |
2,069,603 |
||||||||||||
|
Basic & diluted income per share |
$ |
0.0151 |
$ |
0.0117 |
$ |
0.0485 |
$ |
0.0384 |
||||||||
|
Weighted average shares outstanding: |
||||||||||||||||
|
Basic & diluted weighted average shares outstanding |
65,539,737 |
65,539,737 |
65,539,737 |
65,539,737 |
||||||||||||
CHINA HEALTH INDUSTRIES HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE NINE MONTHS ENDED MARCH 31, 2020 AND 2019
(UNAUDITED)
|
Common Shares |
|
|
|
|
|
|||||||||||||||||||||||||
|
Shares |
Amount |
Additional |
Retained |
Statutory |
Accumulated |
Total |
Non-controlling |
Total |
||||||||||||||||||||||
|
Balance, June 30, 2018 |
65,539,737 |
$ |
6,554 |
$ |
521,987 |
33,901,858 |
38,679 |
775,302 |
35,244,380 |
– |
35,244,380 |
|||||||||||||||||||
|
Net income |
– |
– |
– |
2,517,410 |
– |
– |
2,517,410 |
– |
$ |
2,517,410 |
) |
|||||||||||||||||||
|
Other comprehensive loss – Translation adjustment |
– |
– |
– |
– |
– |
(447,807 |
) |
(447,807 |
) |
– |
(447,807 |
|||||||||||||||||||
|
Balance, March 31, 2019 |
65,539,737 |
$ |
6,554 |
$ |
521,987 |
36,419,268 |
38,679 |
327,495 |
37,313,983 |
– |
37,313,983 |
|||||||||||||||||||
|
Balance, June 30, 2019 |
65,539,737 |
6,554 |
521,987 |
37,208,897 |
38,679 |
(593,654 |
) |
37,182,463 |
– |
37,182,463 |
||||||||||||||||||||
|
Net income |
– |
– |
– |
3,175,880 |
– |
– |
3,175,880 |
– |
$ |
3,175,880 |
||||||||||||||||||||
|
Other comprehensive loss – Translation adjustment |
– |
– |
– |
– |
– |
(1,170,183 |
) |
(1,170,183 |
) |
– |
(1,170,183 |
) |
||||||||||||||||||
|
Balance, March 31, 2020 |
65,539,737 |
$ |
6,554 |
$ |
521,987 |
40,384,777 |
38,679 |
(1,763,837 |
) |
39,188,160 |
– |
39,188,160 |
||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
CHINA HEALTH INDUSTRIES HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2019
(UNAUDITED)
|
Accumulated |
||||||||||||||||||||||||||||||||||||
|
Additional |
Other |
Total |
Non- |
|||||||||||||||||||||||||||||||||
|
Common Shares |
Paid-in |
Retained |
Statutory |
Comprehensive |
Stockholders’ |
controlling |
Total |
|||||||||||||||||||||||||||||
|
Shares |
Amount |
Capital |
Earnings |
Reserve |
Income (loss) |
Equity |
Interest |
Equity |
||||||||||||||||||||||||||||
|
Balance, December 31, 2018 |
65,539,737 |
$ |
6,554 |
$ |
521,987 |
35,651,339 |
38,679 |
(567,758 |
) |
35,650,801 |
– |
35,650,801 |
||||||||||||||||||||||||
|
Net income |
– |
– |
– |
767,929 |
– |
– |
767,929 |
– |
$ |
767,929 |
||||||||||||||||||||||||||
|
Other comprehensive loss – Translation adjustment |
– |
– |
– |
– |
– |
895,253 |
895,253 |
– |
895,253 |
|||||||||||||||||||||||||||
|
Balance, March 31, 2019 |
65,539,737 |
$ |
6,554 |
$ |
521,987 |
36,419,268 |
38,679 |
327,495 |
37,313,983 |
– |
37,313,983 |
|||||||||||||||||||||||||
|
Balance, December 31, 2019 |
65,539,737 |
$ |
6,554 |
$ |
521,987 |
$ |
39,392,055 |
$ |
38,679 |
$ |
(1,086,643 |
) |
$ |
38,872,632 |
– |
38,872,632 |
||||||||||||||||||||
|
Net income |
– |
– |
– |
992,722 |
992,722 |
992,722 |
||||||||||||||||||||||||||||||
|
Other comprehensive loss – Translation adjustment |
– |
– |
– |
– |
– |
(677,194 |
) |
(677,194 |
) |
– |
(677,194 |
) |
||||||||||||||||||||||||
|
Balance, March 31, 2020 |
65,539,737 |
$ |
6,554 |
$ |
521,987 |
40,384,777 |
38,679 |
(1,763,837 |
) |
39,188,160 |
– |
39,188,160 |
||||||||||||||||||||||||
CHINA HEALTH INDUSTRIES HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
For the Nine Months Ended |
||||||||
|
March 31, |
March 31, |
|||||||
|
2020 |
2019 |
|||||||
|
Cash Flows from Operating Activities |
||||||||
|
Net income from operations |
$ |
3,175,880 |
$ |
2,517,410 |
||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
|
Depreciation and amortization expenses |
568,074 |
619,788 |
||||||
|
Provision for doubtful accounts |
(35,936 |
) |
82 |
|||||
|
Provision for inventories |
– |
(155,601 |
) |
|||||
|
Deferred taxes loss |
(1 |
) |
(339 |
) |
||||
|
Changes in operating assets and liabilities, |
||||||||
|
Accounts receivable |
(1,656,659 |
) |
(562,752 |
) |
||||
|
Other receivables |
(3,642 |
) |
1,969 |
|||||
|
Inventory |
(9,356 |
) |
(343,902 |
) |
||||
|
Advance to suppliers and prepaid expenses |
(173,894 |
) |
62,142 |
|||||
|
Accounts payables and accrued expenses |
(88,458 |
) |
96,497 |
|||||
|
Advance from customers and other payables |
(16,074 |
) |
232,195 |
|||||
|
Amounts due to related parties |
478,665 |
445,204 |
||||||
|
Wages payable |
19,014 |
40,142 |
||||||
|
Taxes payable |
(3,845 |
) |
253,604 |
|||||
|
Net cash provided by operating activities |
2,253,768 |
3,206,439 |
||||||
|
Cash Flows from Investing Activities |
||||||||
|
Withdraw of short term investment |
– |
– |
||||||
|
Purchases of property, plant and equipment |
(24,773 |
) |
(189,106 |
) |
||||
|
Expenditure in construction in progress |
(133,436 |
) |
(19,475 |
) |
||||
|
Disposal of property, plant and equipment |
5,846 |
– |
||||||
|
Proceeds from disposal of subsidiaries |
– |
|||||||
|
Net cash used in investing activities |
(152,363 |
) |
(208,581 |
) |
||||
|
Cash Flows from Financing Activities |
||||||||
|
Proceeds from related party debts |
– |
– |
||||||
|
Payment of short term loans |
– |
– |
||||||
|
Net cash provided by financing activities |
– |
– |
||||||
|
Effect of exchange rate changes on cash and cash equivalents |
(1,015,331 |
) |
(393,281 |
) |
||||
|
Net increase/(decrease) in cash and cash equivalents from continuing operations |
1,086,074 |
2,604,577 |
||||||
|
Cash and cash equivalents, beginning balance |
35,507,535 |
32,614,910 |
||||||
|
Cash and cash equivalents, ending balance |
$ |
36,593,609 |
$ |
35,219,487 |
||||
|
Supplemental cash flow information |
||||||||
|
Cash paid for income taxes |
$ |
1,226,331 |
$ |
829,119 |
||||
|
Cash paid for interest expense |
$ |
– |
$ |
– |
||||
|
Non-cash activities: |
||||||||
|
Loan from related party for the construction of a facility |
$ |
729,669 |
$ |
587,296 |
||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/55931
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
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
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