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Hemp, Inc. Praises USDA’s Recent Approval of Hemp Regulatory Plans for Minnesota, Tennessee, and Puerto Rico

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Las Vegas, NV, July 21, 2020 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — Hemp, Inc. (OTC PINK: HEMP) a global leader in the industrial hemp industry with bi-coastal processing centers, including the 85,000 square foot multipurpose industrial hemp processing facility on nine acres in Spring Hope, NC; a 55,000 square foot state of the art local processing center in White City, OR; a 500 acre hemp growing Veteran Village Kins Community in Golden Valley, AZ; two model “Small Family Hemp Farms” in North Carolina and Arizona; a hemp pre-roll blending manufacturing facility in Las Vegas, NV, a 5,000 square-foot retail store (The King of Hemp Store™) in Kingman, Arizona and recently surpassed over $1 million in sales of their pre-98 OG Bubba Kush buds, has announced praise for the USDA’s recent approval of hemp regulatory plans in Minnesota, Tennessee and Puerto Rico.
The latest approval of additional regulatory plans expands the number of approved plans across states, territories and Indian tribes to a total of 53 plans. Most states had pilot programs well before the approval of an industrial hemp plan. Tennessee and Minnesota plan on operating under the 2014 Farm Bill pilot program for the duration of the 2020 season for the sake of stability.In Minnesota there are currently more than 8,000 acres and 4 million square feet of indoor growing space registered in the state, according to the state’s agriculture department. Tennessee’s hemp industry grew dramatically in 2019, licensing 3,800 producers and 51,000 acres of hemp by November of that year. The USDA also approved a production plan for Puerto Rico, the second U.S. territory to be approved after the May approval of the U.S. Virgin Islands hemp plan. Hemp production on the Northern Marianas Island is currently pending legislation as well. Puerto Rico’s approved plan states that the island’s climate will allow for hemp to be harvested up to three times a year, which would provide the local industry an advantage.The global industrial hemp market size is expected to reach USD 15.26 billion by 2027, exhibiting a revenue-based CAGR of 15.8% over the forecast period, according to a report published by Grand View Research, Inc. Additionally, according to a new report from Global Market Insights, the Cannabidiol (CBD) Market size exceeded USD 2.8 billion in 2019 and is set to grow at around 52.7% CAGR between 2020 and 2026, with the global market valuation for CBD crossing $89 billion by 2026. “The new hemp plan approvals in Minnesota, Tennessee, and Puerto Rico will bolster their economies and will surely provide economic opportunities, especially in a place like Puerto Rico where they are projected to produce multiple times a year,” said CEO of Hemp, Inc. Bruce Perlowin. “The trend of more and more states implementing hemp programs positions the US nicely in terms of becoming a major supplier to the growing, global demand for industrial hemp.”To see one-minute videos of Hemp, Inc.’s current activities, visit Bruce Perlowin’s personal Facebook page, where he shares daily posts of Hemp, Inc.’s activities around the country.  Additionally, follow Hemp, Inc. on Instagram here and on Twitter here.Those interested in King of Hemp™ pre-rolls or hemp-derived CBD tinctures should visit www.kingofhempusa.com or email [email protected].  Hemp, Inc.’s King of Hemp™ is also forming a focus group to test the next new line of pre-rolls slated to hit the market in the next few weeks.  Those interested in participating should contact Paul Kodydek via email [email protected]. This focus group will provide an excellent way for King of Hemp™ pre-roll consumers to provide feedback on upcoming new products and allow the Company to gather customer opinion and sentiment prior to prelaunch.To view the webinar featuring Hemp, Inc.’s CEO, Bruce Perlowin, click here. WHAT IS HEMP, INC.?What is Hemp, Inc.? With a deep-rooted social and environmental mission at its core, Hemp, Inc. seeks to build a business constituency for the American small hemp farmer, the American veteran, and other groups experiencing the ever-increasing disparity between tapering income and soaring expenses. The Company is on a mission to be a powerful engine for social change and economic revival, worldwide, by providing hemp products that are eco-friendly, sustainable and healthy. Hemp, Inc. executives believe there can be tangible benefits reaped from adhering to a corporate social responsibility plan.HEMP, INC.’S TEN DIVISIONSIt has been Hemp, Inc.’s intent to continually invest in building its hemp infrastructure, especially since none existed previously. In fact, the Company has instinctively been following the same path as Amazon… reinvesting profits and operating capital back into building the infrastructure. This is a business strategy that has been proven and works well.All the years leading up to this point were building and finishing the largest hemp infrastructure in America and now the Company is focusing 90% of its efforts on marketing and generating revenues. The result, so far, has been almost crossing the million dollar mark in revenue in just 10 weeks.Hemp, Inc.’s ten divisions are as follows:Division One –            The Industrial Hemp InfrastructureDivision Two –            The Hemp Farming InfrastructureDivision Three –          The Hemp Extraction & Pre-Roll Blending InfrastructureDivision Four –            The Hemp Educational InfrastructureDivision Five –            The Hemp Marketing InfrastructureDivision Six –              Accessories, Products and ServicesDivision Seven –         Research and DevelopmentDivision Eight –           Industrial Hemp Investments and Joint VenturesDivision Nine –            Industrial Hemp ConsultingDivision Ten –             Educational EntertainmentDivision One – The Industrial Hemp InfrastructureThe Industrial Hemp Infrastructure (Division One) currently consists of two hemp processing facilities across the country, with two more under development, which will include an in-house third party testing laboratory.  The largest of the two is its multi-purpose industrial hemp processing facility and milling operation in Spring Hope, North Carolina. It’s the largest “industrial hemp processing center” in the western hemisphere and has grown to become one of the pre-eminent centers of the industrial hemp industry. The 85,000 square foot facility sits on 9-acres. It is environmentally sustainable and was built from the ground up in hopes of “Making America Hemp Again.”  With a patent pending manufacturing process, the North Carolina facility is operating full time to process millions of pounds of the Company’s unique kenaf-hemp blend, to manufacture all-green natural loss circulation material (LCMs), called DrillWall™.  The DrillWall™ is to be sold to the oil and gas drilling industry, along with an all-green natural oil spill absorbent, a second industrial kenaf-hemp product called Spill-Be-Gone™. The Company also mills hemp and kenaf to make hemp bioplastics from its industrial hemp processing facility and milling operation in Spring Hope, North Carolina.“We currently have 772,800 pounds of raw kenaf bales, 364,500 pounds of DrillWall™ in 14,580, 25-pound bags; 494,489 pounds of Spill-B-Gone™ in 463 Supersacs and 11,200 pounds of raw hemp in 16 bales.  That’s a total of 1,673,339 pounds of product which translates into finished product that will be sold for $1 – $4 per pound,” said Perlowin.In addition to the company’s industrial hemp processing facility in Spring Hope, North Carolina, Hemp, Inc. also rents one of the most sophisticated local processing centers (LPC) in White City, Oregon which focuses on hemp harvesting, drying, curing, trimming, bagging, storing, and in some cases selling high CBD hemp for local farmers and the Company’s own hemp grows in that area, and post processing for the CBD industry.  The Company’s main focus is the “King of Hemp™” pre-rolls and high CBD smokable buds… a new phenomenon of smoking hemp which has caught the marketplace by storm.Hemp, Inc. and their associates also have 4,500 acres of land in Golden Valley, Arizona  (100 miles from Las Vegas, 20 miles north of Kingman, AZ).  Out of the 4,500 acres of land, 500 acres are designated for the Veteran’s Village Kins Community (VVKC) for Arizona.  Hemp, Inc. is preparing 80+ acres, of the 500 acres, for hemp cultivation. The company aims to boost the economies of these towns by offering affordable hemp processing services, which incentivizes local growers to add hemp to their crop rotation. The company is continuing to scout new locations for local processing centers in Florida, Kentucky, West Virginia, Puerto Rico, North Carolina and several other states.Thus far, Hemp, Inc.’s Local Processing Center (LPC) in Oregon has employed over 200 employees during its 2018 harvest season and over 300 employees during its 2019 harvest season.  As of first quarter 2020, the Company has employed close to 50 employees who are bucking, trimming, sorting, bagging and shipping the Company’s high quality premium Pre-98 OG Bubba Kush hemp. Division One Products:·       DrillWall™ (a loss circulation material)·       Spill-Be-Gone™ (an oil spill cleanup product)·       Hemp bioplasticsAs of first quarter 2020, Hemp, Inc. is fulfilling a $1 million dollar sales agreement, through its subsidiary, Industrial Hemp Manufacturing (IHM), for its DrillWall™. According to CEO, Bruce Perlowin, the Company has executed a sales agreement to sell $1 million worth of DrillWall™ over the course of one year.  IHM received its first $30,000 payment and shipped the first batch of DrillWall™ out in December, 2019 and another $60,000 payment was received for the second batch of DrillWall™ in February, 2020 and a $30,000 payment in March, 2020. “We expect the remaining balance from the $1,000,000 over the next few months,” said Perlowin. IHM is based in Spring Hope, North Carolina, and is the production facility for DrillWall™, along with other industrial hemp products.Division Two – The Hemp Farming InfrastructureThe Hemp Farming Infrastructure (Division Two) consists of hundreds of acres of hemp and kenaf growing in multiple locations, farm equipment, cloning rooms, clones and seeds, grow rooms, greenhouses, hemp drying facilities and a huge amount of peripheral farming tools and equipment. The progress Hemp, Inc. has made in its agricultural endeavors, over the course of four years, has been amazing. This year marks the fifth year that Hemp, Inc. has been growing hemp. (To see Hemp, Inc.’s agricultural progress from 2016 through May, 2020, visit Bruce Perlowin’s personal Facebook page at https://www.facebook.com/kingofpot and scroll through posts from 2016 to the present. Visit https://www.hempincpresents.com/ to see the videos of Hemp, Inc.’s grows in multiple locations.)Hemp, Inc. also has two “Small Family Hemp Farm” models.  The “Small Family Hemp Farm” in North Carolina is situated on 12 acres and consists of a cloning room, a greenhouse, and enough land to grow 2,000-3,000 high CBD or CBG hemp plants. (This model farm can be seen on Bruce Perlowin‘s Facebook page, in the Aug. 22nd – 26th, 2018 posts.) The model shows farmers how to grow high CBD and CBG hemp plants, operate a greenhouse and turn a barn into a cloning room to earn up to $100,000+ a year.  This shows an example of how the “Small Family Hemp Farm” can be duplicated and reappear on the American landscape. After all, the original small family farms in America were able to survive economically by growing hemp as their main cash crop and the first five presidents of the United States were all hemp farmers.A model “Small Family Hemp Farm” is located Dolan Springs, Arizona.  This “Small Family Hemp Farm” is referred to as “The Orchard” since it has a sizable organic orchard.  There are 2 acres on which hemp will be grown; a cloning room; cold storage; and a greenhouse that is planned to be installed. This year mostly CBG hemp will be grown.This year, according to Perlowin, the company is consulting on a 55-acre grow in Oregon, partnering with “Tractor Richard” for 40 acres of CBG hemp and 100 acres of kenaf in Mohave Valley, Arizona. (See Bruce Perlowin’s Facebook page post for May 19, 2020.) The 10 – 40 acres in Golden Valley, Arizona for the Veteran Village Kins Community is based on how many people will sign up for the Hempathon (1 acre joint venture grows with Hemp, Inc.), hundreds of acres in North Carolina (a combination of hemp and kenaf), and an undetermined amount in other states.It should be noted that the number of acreage and the amount to be grown has fluctuated due to the COVID-19 pandemic. However, Perlowin says collective sales from all of these grows will be extremely significant in terms of pre-rolls, high CBD and CBG buds, distillate, isolate, biomass and many other products. “This year is about sales and marketing for us.  Right now, I believe we have the largest footprint of bio-diverse hemp products with vertical integration in the hemp industry in America today. We are always looking for joint ventures where we have or can expand our footprint,” commented Perlowin.Moreover, “A to Z” services for the farmers are available – from harvesting to drying, curing, bucking, machine trimming, hand trimming, bagging, storing, nitrogen sparging, and selling… creating a “one stop shop” for the small to large family farms.Division Two Products include: The King of Hemp™ Pre-Roll Blends High premium CBD flower from the Rogue Valley in Southern Oregon, North Carolina and ArizonaThe super-premium King of HempTM pre-rolls are in full production and use Hemp, Inc.’s A and B hemp colas.  The A and B hemp colas are derived from Oregon-grown Pre-98 OG Bubba Kush, one of the top selling cultivars on the market. The strain, rich soil and climate lend themselves to these colas being among the highest quality buds, positioning them to be some of the best tasting for consumption.Advocates say Oregon has a uniquely suited climate, politically and agriculturally, to dominate the fast-growing industry. Given that Oregon farmers have demonstrated the ability to grow world-renowned products, it makes sense that they would be able to produce some of the best hemp buds in the world. Hemp Inc.’s grow operation in Oregon is among the best in the state and has yielded some of the highest quality hemp colas on the market. The company believes that they will hit the 20% mark of their grade A buds and the rest of the Company’s high-quality colas will be used for their new line of pre-rolls.The King of Hemp™ pre-roll line offers high-end products that are an effective and flavorful, smokable alternative to cigarettes and other hemp consumption methods. The remaining A and B colas used in the newly launched King of Hemp™ pre-rolls are compliant with the 2018 Farm Bill, federal regulations, and regulations in the markets where they are available for purchase. The King of Hemp™ pre-rolls can be purchased individually or in packs of 6. Each pre-roll is 1 gram and does not exceed 0.3% THC.As of the first quarter, sales from the pre-rolls total $3,435. The packaging (boxes) for the pre-rolls were delayed for two months due to COVID-19 but executives say everything is back on track and they have 100,000 boxes in inventory as well as 100,000 tubes for the pre-rolls in inventory. With everything back on track, pre-roll sales are expected to explode with massive revenues to be generated next quarter.Consumers can also shop on the newly redesigned website www.kingofhempusa.com for the King of HempTM pre-rolls and hemp tinctures. Each pre-roll contains a smooth, nearly odorless natural hemp smoke. They are tightly rolled into a filtered cigarette rice paper for the ultimate discreet smoke. Many users have said the King of Hemp™ pre-rolls present a calming experience, perfect for alleviating feelings of anxiousness and gaining mental clarity.The King of Hemp™ tinctures also hit the market with steady sales. While there was a slight interruption in sales due to the COVID-19 pandemic, sales are now back on track. The tinctures available on www.kingofhempusa.com are fast-acting CBD oil tinctures that contain the full spectrum of hemp oil extracted from the flowers and leaves of hemp plants grown by the Company. It contains .3% or less THC so it’s federally legal nationwide.Within the next 30 days, the Company expects to roll-out the second product in the King of Hemp™ (KOH) product line “Midnight Express” in honor of Billy Hayes who made the name famous in the 1978 movie “Midnight Express” chronicling his suffering at the hands of Turkish authorities for trying to smuggle hash shish out of Turkey.Hemp, Inc. is also hosting the Hempathon at the Veteran Village Kins Community in Arizona.  Contestants are growing 1 acre of hemp in a contest with other growers from around the country. Hemp, Inc. is providing land, water, security, and live streaming video coverage for participants. The Hempathon entry fee is $5,000 and a 50/50 revenue split. Winners of the Hempathon will share in several awards and prizes of up to $50,000.The Veteran Village Kins Community in Arizona has 6 domes and the overnight RV camping sites (see Bruce Perlowin’s Facebook page post on 5/16/20) are being set up so people can stay on the land during the Hempathon grow. Live streaming video cameras are also ready, so the world can watch the “The Great American Hempathon” in real time.Also, as part of the Hempathon, Hemp, Inc.’s Hemp Academy (Arizona) will offer classes in one of its geodesic domes during the Hempathon, which will include hemp experts, product developers, field trips to the grow area, and more. This hands-on, interactive, educational experience is the chance of a lifetime for people to learn about this new emerging multi-billion dollar industry from hemp industry experts.A 44-ft. geodesic dome will be set up to show movies, documentaries and courses on everything from bio-dynamic farming, permaculture, organic farming practices to bees, predator pest control, soil amendments, cloning, grafting and other peripheral agricultural course materials.“Knowledge is power and by sharing knowledge, we all grow together,” says CEO Perlowin.Those interested in signing up for the Hempathon should contact Chris Tinney [email protected].Division Three – The Hemp Extraction & Pre-Roll Blending InfrastructureThe Hemp CBD Oil Extraction & Pre-Roll Blending Infrastructure (Division Three) originally consisted of a Supercritical C02 Extractor. After operating for over a year it has been determined that Hemp, Inc. will not be involved in the extraction industry and has changed its direction to focus primarily on the King of Hemp™ pre-rolls and The King of Hemp™ high CBD smokable flower. The CBD oil that was extracted from the 2018 hemp grows in North Carolina has been made into pure crystalline CBD isolate which was added to the Company’s “King of Hemp™” branded line of pre-rolls that are now in the marketplace across all 50 states.In lieu of building its own extraction laboratories, Hemp, Inc. plans to utilize the facilities of other labs in the industry to manufacture its own line of CBD oil products while they continue to build and expand the infrastructure for pre-rolls and high CBD smokable buds. The Company will hire or joint venture with other, already existing, labs to manufacture CBD, CBG, CBC, CBN, and other products in its future cannabinoid line. With 150 different cannabinoids, over 300 terpenes, and more of each being discovered almost monthly, the product range and possibilities in this area are endless.Division Four – The Hemp Educational InfrastructureThe Hemp Educational Infrastructure (Division Four) includes Hemp, Inc.’s Hemp University which focuses on educating and empowering Hemp farmers and entrepreneurs with knowledge, processing, infrastructure and support.  The educational seminars, through the Hemp University, are held periodically (as needed).  These seminars teach farmers and landowners how to create a profitable income stream by maximizing the per-acre crop revenue. Through this division, Hemp, Inc. has trained well over 500 farmers in its first two years by doing a total of nine Hemp University seminars in North Carolina and Oregon, which included:The New Leaf Symposium and Golden Grow Awards Gala – January 26, 2020 (Jacksonville, Oregon)“The New Leaf Symposium’s” focus was “Regeneration” to celebrate optimism and resilience in the industry, the power of the plant, and faith in the hemp-producing community. The event sold out with over 180 attendees. The feedback from attendees was overwhelmingly possible and the speakers were hailed as the best yet. The educational symposium concluded with the “Golden Grow Awards Gala”. The Golden Grow Awards Gala honored Oregon’s top cultivars and put Oregon’s best farmers head-to-head for some of the most prestigious hemp-industry accolades. There were four categories judged in the awards: Top CBD, Top Terpenes, Judge’s Favorite, and Peoples’ Choice.  (See Bruce Perlowin’s personal Facebook post on 1/28/20 for a short video on this symposium.)The Pre-Harvest Symposium – September 8, 2019 (Oregon)“The Pre-Harvest Symposium” workshop at Southern Oregon University was expertly designed for both farmers and entrepreneurs of all experience levels, focused on harvesting, processing and profit channels within the hemp industry. The third edition of the Southern Oregon Hemp University brought an abundance of insight into innovations within the realm of harvesting and processing to the forefront. Additionally, the symposium touched on traditional practices in agriculture. (See Bruce Perlowin’s personal Facebook post on 9/9/19 for a short video on this symposium.)Pre-Plant Support Workshop – May 4, 2019 (Oregon)“The Pre-Plant Support Workshop” was an incredible success that filled the entire venue to capacity with attendees. In total, there were close to 200 attendees, including 20 vendors in attendance. The workshop was designed to help hemp farmers or those who are interested in the hemp industry learn the best pre-planting practices prior to the planting season. The Hemp University Pre-Planting Support Workshop was an interactive and informative workshop that covered the various details hemp farmers should know prior to planting in the 2019 season and beyond. (See Bruce Perlowin’s personal Facebook post on 5/9/19 for a short video on this workshop.)The Hemp University Educational Seminar – March 23, 2019 (Oregon)This was the first Hemp University held on the West Coast.  The seminar provided attendees with a full day of networking, education, and support. The seminar helped others in the area who were interested in the hemp industry learn more about the “Industrial Hemp Revolution” and how this movement can not only transform Southern Oregon’s economy, but also revive family farms and small businesses in the surrounding areas. (See Bruce Perlowin’s personal Facebook post on 3/28/19 for a short video on this seminar.)Growing Hemp for Profit – March 10, 2018 – (North Carolina)  
The Hemp University’s first educational symposium event of 2018 entitled “Growing Hemp for Profit” took place on Saturday, March 10, 2018. Attendees learned from the University’s industrial hemp experts as they shared their lessons from their experiences in growing industrial hemp. “Growing Hemp for Profit,” which took place from 8:30am to 5 pm at the Hilton Garden Inn in Charlotte, North Carolina. (See Bruce Perlowin’s personal Facebook post on 3/17/18 for a short video on this symposium.)
Hemp Money Event: Economics, Lessons & Planning for 2018 – December 2, 2017 – (North Carolina)The fifth most vital and anticipated educational symposium of the year was Hemp Money Event: Economics, Lessons & Planning for 2018. This symposium was held on Saturday, December 2, 2017 from 8:30am to 5:00pm at the Shrine Club (320 Airport Rd, Rocky Mount, NC 27804). Attendees learned the economics of growing industrial hemp for fiber, seeds, and CBD; learned about other master POD growers’ experiences and lessons; and, learned how to prepare for the 2018 industrial hemp growing season with a well-defined blueprint for success. (See Bruce Perlowin’s personal Facebook post on 12/23/17 for a short video on this symposium.)The Hemp Oil Event: The Art and Science of CBD Oil – September 30, 2017 (North Carolina)The Hemp Oil Event (The Art & Science of CBD Oil) was The Hemp University’s fourth symposium in North Carolina, held on Saturday, September 30, 2017 from 8:30am to 5:00pm at the Peachtree Hills Country Club, 3512 Peachtree Hills Road, Spring Hope, NC 27882.  The symposium brought attendees up to speed on all business and scientific aspects of Industrial Hemp CBD cannabinoids by disseminating current, reliable information that continues to shape the revolutionary CBD market. Attendees also got a chance to go to Hemp, Inc.’s, then, 70,000 square foot multipurpose industrial hemp decortication facility for the first live public demonstration of its Supercritical CO2 Extraction System using North Carolina-grown CBD industrial hemp. Representatives from NuAxon Bioscience were also on-site to allow those interested in purchasing their own CBD extraction system. (See Bruce Perlowin’s personal Facebook post on 9/30/17 for a short video on this symposium.)The Art and Science of CBD Greenhouse Growing – June 24, 2017 (North Carolina)The 3rd Hemp University educational symposium held on June 24, 2017 focused on The Art and Science of CBD Greenhouse Growing. The educational symposium was held at Louisburg College in Louisburg, North Carolina. A team of experts engaged attendees through the greenhouse and indoor growing process from cultivation to harvest and from processing to distribution. Dr. Robert Bruck, Dean of Science, Technology, Engineering and Mathematics and Distinguished Professor of Environmental Science at Louisburg College, was The Hemp University’s special guest who lectured on soil microbiology during the symposium. Attendees were able to spend half of the course at Hemp, Inc.’s, then, 70,000 square-foot Industrial Hemp Hub, in a 3,000 square-foot cloning room. There, attendees had the opportunity to experience a more hands-on learning approach. (See Bruce Perlowin’s personal Facebook post on 6/30/17 for a short video on this symposium.)Farming Hemp for Profit – April 29, 2017  (North Carolina)Hemp, Inc.’s second, sold out, educational symposium (Farming HEMP for Profit™), through its Hemp University, was a phenomenal success. The symposium took place on Saturday, April 29, 2017, from 8:30am – 5:00pm, at the Hampton Inn & Suites located at 3920 Arrow Drive, Raleigh, NC 27612 and drew over 100 attendees. The one-day educational symposium and tour of Hemp, Inc.’s, then, 70,000 square-foot multipurpose industrial hemp facility was an opportunity for landowners and farmers to learn how to apply real business building tactics with a “specific step-by-step blueprint” on how to grow, sell and profit from farming industrial hemp. This event accomplished its mission to help landowners and farmers add a new viable and profitable income stream by maximizing the per-acre crop revenue. (See Bruce Perlowin’s personal Facebook post on 4/30/17 for a short video on this symposium.)Farming Hemp for Profit – March 18, 2017 (North Carolina)This was Hemp, Inc.’s first Hemp University symposium.  The symposium was a sold out event and was a huge success with 100 attendees who rated the quality of information presented as excellent. The symposium took place on Saturday, March 18, 2017, from 8:00am – 5:00pm, at Hemp, Inc.’s wholly owned subsidiary, Industrial Hemp Manufacturing, LLC, located at 1436 Highway 581 North, Spring Hope, North Carolina, 27882. The one-day educational symposium was an opportunity for landowners and farmers to receive a “specific step-by-step blueprint” on how to grow, sell and profit from farming industrial hemp by using real business tactics and principles, presented by industry experts. (See Bruce Perlowin’s personal Facebook posts on 3/18-19 and 3/21-26, 2019 for a short videos on this symposium.)To listen to past Hemp University workshops, please visit hemp-university.teachable.com. Also visit https://www.hempincpresents.com to see highlights from Hemp, Inc.’s inaugural Hemp University held in North Carolina, which sold out in two weeks.The Hemp University’s twelve online educational masterclasses are $10 each and each masterclass is under an hour in length. The online courses include lectures from industry leaders who have educated attendees at the Hemp University workshops in Oregon. These online masterclasses provide farmers who were either not able to attend the first Hemp University or who would like to revisit certain topics presented by the event speakers.Those interested in Hemp, Inc.’s online courses, including experts in any aspect of the industrial hemp industry, should contact Chris Tinney on (855) 554-6834 or via email at ([email protected]).“Since The Hemp University’s initial launch with the educational symposium, the number of attendees grew tremendously and was an overwhelming success, each time. The interactive, hands-on learning approach was invaluable. By learning in an interactive cohort format, students gained the necessary skills they needed to immediately implement them on their farm or in their organization. It’s the perfect mix of quality instruction, relevant educational content and a high level of commitment, to ensure the educational success of each attendee,” said Perlowin.The Hemp University has helped transform the livelihoods of North Carolina and Oregon farmers transitioning from tobacco and other crops to industrial hemp by providing them with the tools and support needed to gain a foothold in this burgeoning industry. Division Five – The Hemp Marketing InfrastructureWhile marketing is a critical facet of any business operation for increasing revenues, Hemp, Inc. believes there must be a keen focus on the infrastructure.  The demand for CBD, CBG and other hemp products is massive, some even say the demand is insatiable.  In order to supply that type of volume/demand, there has to be a strong foundation or infrastructure in place.  While Hemp, Inc. continues to grow a rock solid Hemp Marketing Infrastructure, CEO Perlowin reminds us that this infrastructure has to be able to support a meteoric industry growth.  The cannabidiol (CBD) market is on track to grow to $23.7 billion through 2023, according to the Brightfield Group.  The firm also estimated the smokable hemp market to be valued at $11.5 million in 2018, a growth of 250% from 2017. “This is why we consistently focused on infrastructure for so long. Since we made that a priority, we are now positioned to go into an aggressive marketing mode,” says Perlowin.In late January, 2020 the first King of Hemp Store™ had a soft launch in Kingman, Arizona.  This 5,000 square foot Wells Fargo bank building is in the heart of Old Town Kingman next to historic Route 66 and will showcase everything hemp, including the KOH pre-roll line, flower, tinctures, health and beauty products, and Hemp Blue’s hemp denim jeans (www.hempblue.com). The retrofitted, once Wells Fargo Bank building, will also retain the working vault.The company has also recently joint-ventured with the retail store “Hemp Healthcare”, in Dolan Springs, Arizona, to sell high-end cannabidiol (CBD) and hemp-based products. “Hemp Healthcare” is home to an array of renowned CBD and hemp products, including Hemp, Inc.’s cosmetic and wellness line that includes shampoos, conditioners, lotions, candles and more. The retail storefront is conveniently located off Highway 93 in Arizona, in a highly trafficked tourist area. Specifically located on Pierce Ferry Road, “Hemp Healthcare” is next to “Dolan Station” – a location that welcomes numerous tour buses daily with visitors from around the world that stop there on trips to the Grand Canyon. On some days, up to 40 tour buses stop at this location, filled to the brim with tourists on their way to the Sky Walk at the western realm of the Grand Canyon. The Company expects a very good return later this year. It should be noted that due to COVID-19, tour buses are not currently running but the store has become incredibly active due to COVID-19.Division Six – Accessories, Products and ServicesDivision Six focuses on the sale of hemp industry accessories such as the sale of extractors, harvesters, storage bags, containers, fertilizer, soil amendments, humidifiers, dehumidifiers, balers, greenhouses, and greenhouse equipment; the drying, trimming, curing, storing and brokering for other farmers harvesting hemp; and ultimately anything else a hemp farmer may need to be successful. “What we found is that people are always looking for hundreds of items. New harvesting equipment, irrigation equipment of all kinds, soil amendments, organic soil fertilizers, organic pest control products, new extraction technologies and more,” said Perlowin. “As we expand this Division, we will strive to become the Amazon of the hemp industry.”According to Perlowin, Hemp, Inc. is currently building out a new section of its website that will list all of the products. This information will be available on https://www.hempinc.com/ in the near future.Division Seven – Research and DevelopmentWhile Research and Development has been an integral part of Hemp, Inc. since day one, a more formal research and development project will be planned for later this year. This division will then start and expand rapidly. The Company originally planned for Puerto Rico to be a research and development hub, but found the barrier to entrance was much too great and has therefore changed its position to focus its research and development division on states where hemp is already legal. Hemp, Inc. is proud to have been a pioneer and leader in the early stages of the hemp industry in America with our strategy to build infrastructure even before legalization occurred in a state such as what was done in North Carolina and Arizona.“It is now more economically advantageous to operate in a state that already has several years of legalization behind it because it makes it easier further down the road for hemp companies to thrive – just as we have done in North Carolina, Arizona, Nevada and especially Oregon.  Our growing operation in Oregon hit a grand slam, 2 years in a row.”Division Eight – Industrial Hemp Investments and Joint VenturesHemp, Inc. established its eighth division (Industrial Hemp Investments and Joint Ventures).  Since the passing of the 2018 hemp bill, Hemp, Inc. has been flooded with inquiries of people who want to invest in the hemp industry but don’t know where to start. As the Avant-guard of the industrial hemp industry, Hemp, Inc. has put together numerous joint venture investment opportunities for the medium to large-scale investor. Those who are interested should email [email protected]. Millionaire investors, and in some cases billionaires and billion dollar hedge fund managers, are aggressively trying to get into the hemp industry since the passing of the 2018 Farm Bill. Our joint venture agreements are that they put up the money and we put up the expertise in a 50/50 revenue share (after all the initial investment money is paid back).  This will save the large-scale hemp investor often two years and dozens of multi-million dollar mistakes that they “WILL” often make without an expert in the hemp industry. This is where Hemp, Inc.’s vast network of experts and resources, built over a period of 10 years, in the industrial hemp industry come into play because this is something we can easily provide to those interested in entering this industry.Division Nine – Industrial Hemp ConsultingHemp, Inc.’s Industrial Hemp and Medical Marijuana Consulting Company (IHMMCC) was recently restructured as its ninth division and is now “Division Nine – Industrial Hemp Consulting”.  With an influx of public companies wanting to expand into the industrial hemp industry, Hemp, Inc. has been inundated with potential consulting agreements. To keep up, Hemp, Inc. revamped its consulting division to work hands-on with each company to provide its years of expertise. According to Perlowin, there is definitely a sense of a “Community of Companies” whereby a lot of companies are working together to pool their resources, marketing connections and strategies in order to grow simultaneously.Typically, companies seeking in depth consulting services from Hemp, Inc. pay mostly in stock since cash flow is oftentimes tight during the developmental stage of start-up companies in this industry. Through Hemp, Inc.’s Division Nine – Industrial Hemp Consulting, a wide range of services are forged from the experiences of creating the first publicly traded company in the cannabis sector (Medical Marijuana, Inc.) and having over a decade of experience in the industrial hemp industry’s public sector. Perlowin, Hemp, Inc.’s chief executive officer, also has over five decades in the industry.Division Ten – Educational EntertainmentHemp, Inc.’s newest division, Entertainment, will cover everything from investing in the movie “The Adventures of the King of Pot” (https://www.kingofpotthemovie.com/) and other historical movies, books and documentaries representing our industry up to the current docuseries being made on “The Modern Day History of Hemp”.  Those interested in investing in any one of these ventures should contact the division’s Project Manager, Chris Tinney, at 855-554-6834 or via email, [email protected].VETERAN VILLAGE KINS COMMUNITIESTo see the livestream feed for the Veteran’s Village Kins Community Arizona, visit https://www.hempinc.com/arizona and click on “View Live Feed” or visit www.kinscommunity.com and click on the “Livestream Video” tab.The company’s 500-acre strategic growing partner Veteran Village Kins Community in Golden Valley, Arizona, is designed to grow hemp and produce CBD and CBG products to benefit veterans as well as generate revenue for Hemp, Inc., the Veteran Village and individual veterans living in the community.The Veteran Village Kins Community in Arizona has completed its final site plan blueprints for its 36 of the 500-acre site in Golden Valley, Arizona (20 miles north of Kingman, AZ and 90 minutes from Las Vegas, NV). The site plan was submitted to the Mohave County Building Department for final review. The Company is also in the final stages of completing the necessary infrastructure to support an off-grid, renewable, energy system.Live streaming video can be accessed on www.kinscommunity.com by clicking the “Livestream Video” tab.  Viewers are able to actually see the way the Veteran Village Kins Community is designed and watch it being built. According to Perlowin, the basic framework or overall plan of the Veteran Village Kins Communities is to create a holistic healing and learning center that is designed to educate and heal veterans with PTSD, alcoholism, meth addiction, opioid addiction, and other psychological conditions while at the same time training them on the numerous aspects of being part of the emerging multi-billion dollar hemp industry. To see the first live streaming video, click here.The Company will also build hemp-growing communities for other groups such as “Abused” Women & Children Village Kins Communities; the “Orphans” Village Kins Communities; “Homeless” Village Kins Communities, the “Healers” Village Kins Communities (the healers are professionals who are knowledgeable in the modalities to treat these traumatized groups); and a community to “Heal the Healers” called Heal the Healers Village Kins Community Arizona. These particular communities are all synergistically aligned to work simultaneously supporting each other.For example, the “Healers” heal the traumatized veterans and women & children; the women support orphaned children, and orphaned children want to see people living in homes and not homeless. Thus, a portion of the hemp grown in each community goes to create and support another community, giving everybody a sense of giving back and helping others as they help themselves. This circles back to the healers who also work to heal the veterans and the other traumatized groups. This is the economic foundation on how the sale of the hemp products operates as a “quantum economic matrix” or an example of “symbiotic economics” which is way more complex than this brief description allows.Dwight Jory, the Project Manager for the “Veteran Village Kins Community Arizona, Inc.”, said, “We are very happy with the progress. Our Kins Community is really beginning to come together.” Planting began April 20, 2020 (see Bruce Perlowin’s Facebook page post on 5/15/20).  Three-hundred acres have been fenced and 120 acres have been scraped and cleared to grow hemp, 13 overnight trailer park sites are under construction, and organic gardens have been planted, according to Jory. These organic gardens double as experimental growing modules using an entire array of different growing technologies to see which modalities grow the best in a desert environment. As for the 6 geodesic domes, two have been converted to greenhouse nurseries (see Bruce Perlowin’s personal Facebook page post on 5/14/20)  and the others are structurally intact. “We have been gaining a lot of momentum in our Veteran’s Village so these updates change week by week,” says Perlowin.“We are now accepting volunteers who have expressed an interest in helping to build the first Kins Community for our veterans,” said Jory. Those interested in making the first hemp growing CBD-producing “Veteran Village Kins Community” become a reality should contact Ms. Sandra Williams via email ([email protected]).One thousand trees, on 36 of the 500-acres, have also been planted, with an additional 1,000 trees on order. The “Veteran Village Kins Community” will include a 100,000-square foot GMP compliant, central processing plant, a state-of-the-art testing laboratory, and various health and wellness centers to support veterans who may have psychological, emotional or health issues.“As Hemp, Inc. positions itself on the forefront of America’s industrial hemp revolution, we see our partnership with ‘Veteran Village Kins Community Arizona, Inc.’ being paramount in supporting the small family farm movement that we are confident will reshape the American landscape,” said Perlowin. “As we work toward getting our eco-village up and running in Golden Valley, Arizona, we are also aggressively scouting strategic locations in other states including North Carolina, South Carolina, Florida, Georgia, Kentucky, Tennessee and West Virginia. Giving veterans and other Americans a place to learn new skills and take part in this multi-billion-dollar hemp CBD market is very exciting. It’s a big part of our mission to give back.  Recently we have expanded our Kins Community concept internationally focusing on, but not limited to, Israel, New Zealand, Canada, Africa, and Australia.”Hemp, Inc. executives are also continuing to scout new locations nationwide to open additional hemp processing centers in legal markets.PRESS COVERAGEBetween the Hemp University, the hemp processing center and Bruce Perlowin himself, the Company has created an enormous amount of media coverage. See below for the list of press hits the Company has received up to the end of this quarter:Hit: Hemp: the burgeoning industry of southern Oregon” – (NBC) KOBI-5, December 22, 2018Press Release: “Hemp, Inc. Featured on Oregon NBC 5 Station Following Passage of 2018 Farm BillHit: Carolina’s next cash crop?: Farm bill will add hemp into more growers’ rotation” – The Wilson Times, December 26, 2018Press Release: “Hemp, Inc. Receives Prominent News Coverage Discussing Hemp Legalization and Small Family FarmsHit: Arizona’s next cash crop? Lawmaker pushes for rush on hemp bill” – ABC 15, January 28, 2019Press Release: “Hemp, Inc. Applauds Arizona Legislative Drive to Push Up Industrial Hemp Licensing Date to June 2019 as Veteran Village Kins Community Builds Out InfrastructureHit: Farmers could plant hemp in Arizona fields this summer, if bill passes – ABC KUGN-9, February 8, 2019Hit: Adams on Agriculture – Bruce Perlowin/Hemp, Inc.” – Adams On Agriculture, February 22, 2019Press Release: “Hemp, Inc. CEO Featured on National Radio Show Discussing Company’s Expanding Footprint and Demand for CannabidiolHit: Hemp, Inc. seeking JV partners for processing facilities, CEO says” – MergerMarket, February 28, 2019Hit: Hemp, Inc. holds first west coast educational seminar in Ashland” –  (NBC) KOBI-5, March 23, 2019Press Release: “Hemp, Inc. Featured by CBS and NBC Affiliates in Oregon About The Hemp University’s Educational Hemp SeminarHit: Hemp University: getting schooled on cannabis” – CBS News 10, March 26, 2019Press Release: “Hemp, Inc. Featured by CBS and NBC Affiliates in Oregon About The Hemp University’s Educational Hemp SeminarHit: How Hemp Is Giving Renewed Life To America’s Tobacco Farmers” – Forbes, March 25, 2019Press Release: “Hemp, Inc. CEO Bruce Perlowin Featured in Forbes Discussing Tobacco Farmers Who are Turning to Industrial HempHit: Market for hemp still a ways off” – Tri-State Neighbor, March 28, 2019Hit: Tobacco growers may find new avenue in hemp farming” – AgDaily, April 26, 2019Press Release: “Hemp, Inc. CEO Bruce Perlowin Featured in AgDaily Discussing Hemp as Agricultural Industry’s Newest Cash CropHit: Industrial hemp has potential to be a big cash crop for area farmers” – Tulsa World, May 12, 2019Press Release: “Hemp, Inc. CEO Bruce Perlowin Featured in Tulsa World Discussing Oklahoma’s Industrial Hemp IndustryHit: Growing hemp in the desert” – Today’s News-Herald/Havasu News, June 10, 2019Press Release: “Hemp, Inc. CEO Bruce Perlowin Featured on Cover of Today’s News-Herald Discussing Arizona’s Industrial Hemp IndustryHit: Hempathon” contest planned for Golden Valley” – Mohave Daily News, July 7, 2019Press Release: “Hemp, Inc. CEO Bruce Perlowin Featured in Mohave Daily News and CBD Today Discussing HempathonHit: Hemp, Inc. Seeking Agriculture Suppliers and Farmers for Hempathon Event” – CBD Today, July 2, 2019Press Release: “Hemp, Inc. CEO Bruce Perlowin Featured in Mohave Daily News and CBD Today Discussing HempathonHit: Hemp Inc. to Hold “Hempathon” in Mohave County” – Arizona Cannabis News, July 15, 2019Hit: Hemp, Inc. taking hemp into bioplastics” – Plastics News, August 22, 2019Press Release: “Hemp, Inc. Featured in Plastics News Regarding Entry Into Hemp Bioplastics Industry to Help Fill Growing Demand for Eco-friendly MaterialsHit: “ROSEBUD ORIGINAL VIDEO: Hemp University the Pre-Harvesting Symposium” – Mail Tribune, September 9, 2019Press Release: Hemp, Inc. Subsidiary, The Hemp University, Featured in Mail Tribune Showcasing Pre-Harvest Symposium Hemp WorkshopHit: “Hemp In The Valley” – CBS News 10, September 12, 2019Press Release: Hemp, Inc. CEO Bruce Perlowin Featured on CBS News 10 in Oregon Discussing State’s Booming Hemp IndustryHit: “Episode 72 : “King of pot, smuggling 101, and getting arrested on an airplane” – Off Script With Trish Glose, CBS News 10 Podcast, September 25, 2019Press Release: Hemp, Inc. CEO Bruce Perlowin to be Featured on the Podcast “Off Script with Trish Glose” This WednesdayHit: “Why US Tobacco Farmers Are Switching To Hemp” – Business Insider, September 16, 2019Press Release: Hemp, Inc. Affiliate, Through a Joint Venture, Featured on Business Insider for North Carolina Farming OperationsHit: “HEMP, INC. Joins The Stock Day Podcast to Discuss The Distribution of Their Hemp Pre-Rolls” – Stock Day Podcast, September 27, 2019Press Release: HEMP, INC. Joins The Stock Day Podcast to Discuss The Distribution of Their Hemp Pre-RollsHit: “Hemp hardwoods, bioplastics expand crop use beyond CBD” – United Press International, October 2, 2019Press Release: Hemp, Inc. Featured in Globally Syndicated News Provider, United Press International, Discussing Industrial Applications for BioplasticsHit: “Rising High: An Exclusive Talk with Industrial Hemp Company Hemp, Inc.” – The Fly, October 17, 2019Press Release: Hemp, Inc. Profiled in Financial News Outlet, The FlyHit: “Lack of Processing Facilities For Hemp” – ABC News Watch 12, October 30, 2019Press Release: Hemp, Inc. Oregon Processing Operation Featured in NewsWatch 12’s Harvest CoverageHit: “Hemp farmers in red tape” – CBS News 10, November 5, 2019Press Release: Hemp, Inc.’s Commentary on New USDA Rules Featured in KTVL Broadcast and Smoky Mountain NewsHit: “Legislature to ban smokable hemp in N.C.” – Smoky Mountain News, November 6, 2019Press Release: Hemp, Inc.’s Commentary on New USDA Rules Featured in KTVL Broadcast and Smoky Mountain NewsHit: “Hemp Inc. CEO, Bruce Perlowin Interview” – The Light, November 13, 2019Press Release: Hemp, Inc. CEO Bruce Perlowin Joins News Video Series, The Light, to Discuss Company InitiativesHit: “Hemp Industry Prime for Post-Pandemic Growth” – Cannabis Tech, April 17, 2020 Press Release: “Hemp, Inc. CEO Bruce Perlowin Featured in Cannabis Tech”Hit: “Cannabis Businesses During the Coronavirus” – Way of Leaf, April 17, 2020 Press Release: “Hemp, Inc. Featured in Marijuana Break’s Coverage on Hemp and COVID-19Hit: “Hemp farmers going ‘full force’ despite pandemic” – PoliticoPro, April 27, 2020 Press Release: “Hemp, Inc. Featured in Politico Pro’s Coverage of The Hemp Industry Amidst The COVID-19 PandemicHit: “4 Highly Speculative Micro-Cap Stocks To Have On Your Radar” – Benzinga, May 6, 2020Press Release: Hemp, Inc. —  One of the Top Micro-Cap Stocks Investors Should Have on Their Radar” Hit: “American Hemp Farmers Table Talk” – Youtube, May 26, 2020Press Release: “Hemp, Inc.’s CEO Shares Insights With Georgia Hemp Farmers During Recent Webinar AppearanceHit: E.95 Changing the World through Hemp ft. “King of Pot Stocks” Bruce Perlowin – Lit & Lucid Podcast, July 7, 2020Press Release: “Hemp, Inc. CEO Bruce Perlowin to be Featured on Lit & Lucid PodcastHEMP, INC.’S STOCK BUY BACK PLANHemp, Inc.’s stock buyback is a mechanism to dramatically reduce the outstanding shares in the open market. “Once our Stock Buy Back Plan begins, and all the legal requirements to do this are in place, it is our intention to use 10% to 50% of the revenues, at some time in the future, when all the complex legal requirements are in place.”FORWARD-LOOKING DISCLAIMER AND DISCLOSURESThis press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. The Securities and Exchange Commission (SEC) requires issuers to provide “adequate current information” and Hemp, Inc. does… using the SEC’s Alternative Reporting Standard to publicly report its quarterly and yearly financials.  All current information can be found on www.hempinc.com/hemp-financial-disclosures/. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties.Contact:Hemp, Inc.    855-436-7688[email protected]
More Contacts:[email protected][email protected][email protected]

Cannabis

IM Cannabis Reports 2023 Financial Results

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im-cannabis-reports-2023-financial-results

TORONTO and GLIL YAM, Israel, March 28, 2024 /PRNewswire/ — IM Cannabis Corp. (the “Company” or “IMC“) (NASDAQ: IMCC) (CSE: IMCC), an international medical cannabis company, announced its financial and operational results for the year ended December 31, 2023, the highlights of which are included in this news release. All figures are reported in Canadian dollars. The Company’s full set of consolidated audited financial statements for the years ended December 31, 2023 and 2022 (the “Annual Financial Statements“) and accompanying management’s discussion and analysis (the “Annual MD&A“) can be accessed by visiting the Company’s website at https://investors.imcannabis.com/, and its profile pages on SEDAR+ at www.sedarplus.ca, and EDGAR at http://www.sec.gov/edgar.

FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2023

  • Revenue decreased to $48.8 million for the fiscal year ended December 31, 2023 (compared to $53.3 in 2022), representing a decrease of 10%.
    • Primarily due to negative currency fluctuations and the impact of the Israel-Hamas war on the Company’s operations.
  • Revenue decreased to $10.7 million for the three months ended December 31, 2023 (compared to $14.5 million in 2022), representing a decrease of 26%.
    • Primarily due to the interruption on the Company’s supply chain caused by the Israel-Hamas war and the Company discounting certain outstanding inventory at lower prices.
  • Gross profit increased to $9.8 million for the fiscal year ended December 31, 2023 (compared to $9.2 million in 2022), representing an increase of 7.5%
  • Gross profit decreased to $0.8 million for the three months ended December 31, 2023 (compared to $2.6 million in 2022), representing a decrease of 68%
    • Primarily due to the interruption on the Company’s supply chain caused by the Israel-Hamas war and the Company discounting certain outstanding inventory at lower prices.
    • The Company’s fair value adjustment was approximately $1 million for the fiscal year ended December 31, 2023 (compared to $2.1 million in 2022).
  • G&A expenses decreased to $11 million for the fiscal year ended December 31, 2023 (compared to $21.5 million in 2022), representing an decrease of 49%
  • G&A expenses decreased to $3.3 million for the three months ended December 31, 2023 (compared to $9.8 million in 2022), representing a decrease of 66%
    • Primarily due to the impairment on Y2022 and restructuring and HC adjustments in 2023.
  • Selling and marketing expenses decreased to $10.8 million for the fiscal year ended December 31, 2023 (compared to $11.5 million in 2022), representing an decrease of 6%
  • Selling and marketing expenses decreased to $2.8 million for the three months ended December 31, 2023 (compared to $3.1 million in 2022), representing a decrease of 10%
    • Primarily due to a decrease in share based compensation payments and a restructuring of the Company’s personnel.
  • Net Loss from continuing operations for the fiscal year ended December 31, 2023 was $10.2 million, as compared to $24.9 million in 2022.
  • Net Loss from continuing operations for the three months ended December 31, 2023 was $3.5 million, as compared to a Net Loss of $9.6 million in the fourth quarter of 2022.
  • Diluted Loss per Share for the fiscal year ended December 31, 2023 was $0.74, compared to a loss of $3.81 per Share in 2022.
  • Diluted Loss per Share for the three months ended December 31, 2023  was $(0.25), compared to a basic loss of $)2.94( per share and a diluted loss of $)3.55( per share in for the three months ended December 31, 2022.
  • Cash and Cash Equivalents as of December 31, 2023, was $1.8 million, compared to $2.4 million as of December 31, 2022. 
  • Total assets were $48.8 million as of December 31, 2023, compared to $60.7 million as of December 31, 2022, representing a decrease of 20%.
    • Primarily attributed to an inventory reduction of about $6.6 million, a reduction in other current assets of $1.8 million and a reduction of non-current assets of about $3.5 million
  • Total Liabilities were $35.1 million as of December 31, 2023, compared to $36.9 as of December 31, 2022, representing a decrease of about 5%. 
    • Primarily attributed to a reduction in trade payables of $6.1 million.
  • Operating expenses decreased to $22.6 million for the year ended December 31, 2023 (compared to $40 million in 2022), representing a decrease of 43%
  • Operating expenses decreased to $6 million for the three months ended December 31, 2023 (compared to $13.3 million in 2022), representing a decrease of 55%
  • Adjusted EBITDA1 decreased to $8 million for the year ended December 31, 2023, (compared to $11.5 in 2022), representing a decrease of 30%
  • Total Dried Flower sold in 2023 was approximately 8,609 kg with an average selling price of $5.14 per gram (compared to approximately 6,794kg, with an average selling price of $7.12 per gram in 2022).
    • Primarily due to increased competition within the retail segment and the Company discounting certain outstanding inventory at lower prices.
  • Total Dried Flower sold in the fourth quarter of 2023 was about 2,082kg with an average selling price of $4.52 per gram (compared to about 2,334kg with an average selling price of $5.19 per gram in 2022).
    • Primarily due to increased competition within the retail segment and the Company discounting certain outstanding inventory at lower prices.

The Annual Financial Statements include a note regarding the Company’s ability to continue as a going concern. The Annual Financial Statements do not include any adjustments relating to the recoverability and classification of assets or liabilities that might be necessary should the Company be unable to continue as a going concern. For more information, please refer to the “Liquidity and Capital Resources” and “Risk Factors” sections in the 2023 Annual MD&A.

Management Commentary

“IMC Germany delivered accelerated growth in 2023, growing 181% from $252K in 2022 to $709K in 2023. During this time, IMC Germany was #1 in sales per stock keeping unit and posted the highest growth against its competitors in the German market.2 With the regulatory rescheduling of cannabis in Germany set to occur effective April 1st, the Company hopes to continue its growth in the market as the market evolves,” said Oren Shuster, Chief Executive Officer of IMC. “In addition, as we are constantly looking for opportunities to maximize shareholder value, we are hopeful that our potential reverse merger with Israel-based Kadimastem Ltd., a clinical cell therapy public company traded on the Tel Aviv stock exchange under the symbol (TASE: KDST) will proceed as expected, which we believe will create significant value for the shareholders.”

“As previously warned and as expected, unfortunately, the Israel-Hamas war had a negative impact on our fourth quarter 2023 results, which weighed on our full year results. Due to the ongoing conflict, there was a 6% decrease in our yearly revenue. Coupled with our fourth quarter of 2023 inventory reduction, the war caused our fourth quarter gross profit to decrease by 68% as compared to the fourth quarter of 2022. However, our gross profit for 2023 increased by 7.5% to $9.8 million as compared to last year,” said Uri Birenberg, Chief Financial Officer of IMC. “Partially offsetting these declines, we were able to reduce our operating costs in the fourth quarter of 2023 by 55% as compared to the fourth quarter of 2022, ending the year with a 43% reduction in our operating costs as compared to last year, as we leaned further into our goal of active cost management.”

Conference Call 

The Company will host a Zoom web conference call today at 9:00 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community. Investors are invited to register by clicking here. All relevant information will be sent upon registration.

If you are unable to join us live, a recording of the call will be available on our website at https://investors.imcannabis.com/ within 24 hours after the call.

Non-IFRS Measures

This press release makes reference to “Gross Margin” and “Adjusted EBITDA”, which are financial measures that are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are provided as complementary information to the Company’s IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should neither be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.

For an explanation of how management defines Gross Margin and Adjusted EBITDA, see the 2023 MD&A.

We reconcile these non-IFRS financial measures to the most comparable IFRS measures as set out below:

About IM Cannabis Corp.

IM Cannabis Corp. (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 exited operations in Canada to pivot its focus and 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 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. Until recently, the Company also actively operated in Canada through Trichome Financial Corp and its wholly owned subsidiaries, where it cultivated, processed, packaged, and sold premium and ultra-premium cannabis at its own facilities under the WAGNERS and Highland Grow brands for the adult-use market in Canada. The Company has exited operations in Canada and considers these operations as discontinued.

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 Company leaving the Canadian cannabis market to pivot its focus and resources to achieve sustainable and profitable growth in its highest value markets, Israel and Germany; the impact of the Israel-Hamas war on the Company, including its operations and the medical cannabis industry in Israel; the timing and impact of the partial legalization of medicinal cannabis in Germany, including, the Company having it “all in house”, the Company being positioned to take advantage of the partial legalization, the Company’s growth in 2024, the market growth for medicinal cannabis in Germany, and the stated benefits of the Company’s EU-GMP processing facility and an EU-GDP logistics center; the Company to host a teleconference meeting as stated; and the Company’s stated goals, scope, and nature of operations in Germany, Israel, and other jurisdictions the Company may operate.

Forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to: the Company’s ability to focus and resources to achieve sustainable and profitable growth in its highest value markets; the Company’s ability to mitigate the impact of the Israel-Hamas war on the Company; the Company’s ability to take advantage of the partial legalization of medicinal cannabis in Germany; the Company’s ability to host a teleconference meeting as stated; and the Company’s ability to carry out its stated goals, scope, and nature of operations in Germany, Israel, and other jurisdictions the Company may operate.

The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward-looking statements due to a number of factors and risks. These include:  the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the Company’s ability to continue to meet the listing requirements of the Canadian Securities Exchange and the NASDAQ Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and Focus Medical (collectively, the “Group“) to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group’s obligations; the Group’s possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group’s cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt; 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 partial legalization of medicinal cannabis in Germany; and the Company’s inability to host a teleconference meeting as stated.

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.

1 Earnings before interest, taxes, depreciation, and amortization (“EBITDA“) and Adjusted EBITDA. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS“) and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-IFRS measures provide investors with a supplemental measure of the Company’s operating performance and therefore highlight trends in Company’s core business that may not otherwise be apparent when relying solely on IFRS measures. Management uses non-IFRS measures in measuring the financial performance of the Company.

2 Based on reporting by Insight Health’s as of December 31, 2023.

 

Company Contact: 

Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
[email protected]

Oren Shuster, CEO
IM Cannabis Corp.
+972-77-3603504
[email protected]

 

 

 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Canadian Dollars in thousands

December 31,

Note

2023

2022

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$    1,813

$        2,449

Trade receivables

6

7,651

8,684

Advances to suppliers

936

1,631

Other accounts receivable

7

3,889

3,323

Inventory

9

9,976

16,585

24,265

32,672

NON-CURRENT ASSETS:

Property, plant and equipment, net

10

5,058

5,221

Investments in affiliates

15c

2,285

2,410

Right-of-use assets, net

12

1,307

1,929

Deferred tax assets, net

17

763

Intangible assets, net

11

5,803

7,910

Goodwill

11

10,095

9,771

24,548

28,004

Total assets

$       48,813

$       60,676

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Canadian Dollars in thousands

December 31,

Note

2023

2022

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Trade payables

14

$        9,223

$       15,312

Credit from banks and others

13

12,119

9,246

Other accounts payable and accrued expenses

15

6,218

6,013

Accrued purchase consideration liabilities

5

2,097

2,434

PUT Option liability

2,697

Current maturities of operating lease liabilities

12

454

814

32,808

33,819

NON-CURRENT LIABILITIES:

Warrants measured at fair value

17

38

8

Operating lease liabilities

12

815

1,075

Credit from banks and others

394

399

Employee benefit liabilities, net

16

95

246

Deferred tax liability, net

19

963

1,332

2,305

3,060

Total liabilities

35,113

36,879

EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:

20

Share capital and premium

253,882

245,776

Translation reserve

95

1,283

Reserve from share-based payment transactions

9,637

15,167

Accumulated deficit

(249,145)

(239,574)

Total equity attributable to shareholders of the Company

14,469

22,652

Non-controlling interests

(769)

1,145

Total equity

13,700

23,797

Total equity and liabilities

$       48,813

$       60,676

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

Canadian Dollars in thousands

Year ended December 31,

Note

2023

2022

 *) 2021

Revenues

21

$       48,804

$       54,335

$       34,053

Cost of revenues

21

37,974

43,044

25,458

Gross profit before fair value adjustments

10,830

11,291

8,595

Fair value adjustments:

Unrealized change in fair value of biological assets

(315)

6,308

Realized fair value adjustments on inventory sold in the year

(984)

(1,814)

(8,570)

Total fair value adjustments

(984)

(2,129)

(2,262)

Gross profit after fair value adjustments

9,846

9,162

6,333

General and administrative expenses

21

11,008

21,460

17,221

Selling and marketing expenses

21

10,788

11,473

6,725

Restructuring expenses

1

617

4,383

Share-based compensation

20

225

2,637

5,422

Total operating expenses

22,638

39,953

29,368

Operating loss

(12,792)

(30,791)

(23,035)

Finance income

7,006

6,703

23,544

Finance expenses

(3,671)

(1,972)

(673)

Finance income (expense), net

3,335

4,731

22,871

Loss before income taxes

(9,457)

(26,060)

(164)

Income tax expense (benefit)

18

771

(1,138)

500

Net loss from continuing operations

(10,228)

(24,922)

(664)

Net loss from discontinued operations, net of tax

25

(166,379)

(17,854)

Net loss

(10,228)

(191,301)

(18,518)

*)       Reclassified in respect of discontinued operations – see Note 25.

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

Canadian Dollars in thousands, except per share data

Year ended December 31,

Note

2023

2022

 *) 2021

Other comprehensive income that will not be reclassified to profit or loss in subsequent periods:

Remeasurement gain on defined benefit plans

38

59

21

Exchange differences on translation to presentation currency

(894)

(1,238)

858

Total other comprehensive income that will not be reclassified to profit or loss in subsequent periods

(856)

(1,179)

879

Other comprehensive income that will be reclassified to profit or loss in subsequent periods:

Adjustments arising from translating financial statements of foreign operation

231

(246)

530

Total other comprehensive income (loss)

(625)

(1,425)

1,409

Total comprehensive loss

$     (10,853)

$    (192,726)

$      (17,109)

Net loss attributable to:

Equity holders of the Company

$      (9,498)

$    (188,890)

$      (17,763)

Non-controlling interests

(730)

(2,411)

(755)

$       (10,228)

$    (191,301)

$      (18,518)

Total comprehensive loss attributable to:

Equity holders of the Company 

$        (10,648)

$    (190,162)

$      (16,357)

Non-controlling interests 

$        (205)

(2,564)

(752)

$        (10,853)

$    (192,726)

$     (17,109)

Earnings (loss) per share attributable to equity holders of the Company from continuing operations:

22

Basic earnings (loss) per share (in CAD)

$              (0.74)

$          (3.13)

$            0.02

Diluted loss per share (in CAD)

$              (0.74)

$          (3.81)

$           (3.62)

Loss per share attributable to equity holders of the Company from discontinued operations:

Basic and diluted loss per share (in CAD)

$        (23.17)

$          (3.08)

Loss per share attributable to equity holders of the Company from net loss:

Basic earnings (loss) per share (in CAD)

$              (0.74)

$        (26.3)

$          (3.06)

Diluted loss per share (in CAD)

$              (0.74)

$        (26.98)

$          (6.7)

*)       Reclassified in respect of discontinued operations – see Note 25.

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Canadian Dollars in thousands

Share capital and premium

Treasury Stock

Reserve from share-based payment transactions

Translation reserve

Accumulated deficit

Total

Non-controlling interests

Total
equity

Balance as of January 1, 2021

$     37,040

$              –

$       5,829

$       1,229

$   (33,001)

$     11,097

$       1,513

$     12,610

Net loss

(17,763)

(17,763)

(755)

(18,518)

Total other comprehensive income

1,385

21

1,406

3

1,409

Total comprehensive income (loss)

1,385

(17,742)

(16,357)

(752)

(17,109)

Issuance of common shares, net of issuance costs of $3,800

195,259

195,259

2,948

198,207

Purchase of treasury common shares

(660)

(660)

(660)

Exercise of warrants and compensation options

4,293

4,293

4,293

Exercise of options

1,053

(920)

133

133

Share-based compensation

7,471

7,471

7,471

Expired options

32

(32)

Balance as of December 31, 2021

237,677

(660)

12,348

2,614

(50,743)

201,236

3,709

204,945

Net loss

(188,890)

(188,890)

(2,411)

(191,301)

Total other comprehensive income (loss)

(1,331)

59

(1,272)

(153)

(1,425)

Total comprehensive loss

(1,331)

(188,831)

(190,162)

(2,564)

(192,726)

Issuance of treasury common shares

660

660

660

Issuance of shares, net of issuance costs of $178

6,818

6,818

6,818

Exercise of options

992

(659)

333

333

Share-based compensation

3,767

3,767

3,767

Expired options

289

(289)

Balance as of December 31, 2022

245,776

15,167

1,283

(239,574)

22,652

1,145

23,797

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Canadian Dollars in thousands

Share capital
and
premium*)

Reserve from
share-based
payment
transactions

Translation
reserve

Accumulated
deficit

Total

Non-controlling interests

Total
equity

Balance as of December 31, 2022

245,776

15,167

1,283

(239,574)

22,652

1,145

23,797

Net loss

(9,498)

(9,498)

(730)

(10,228)

Total other comprehensive income (loss)

(1,188)

38

(1,150)

525

(625)

Total comprehensive loss

(1,188)

(9,460)

(10,648)

(205)

(10,853)

Issuance of treasury common shares

2,351

2,351

2,351

Issuance of shares, net of issuance costs of $178

Exercise of options

Other comprehensive income Classification

(111)

(111)

(1,709)

(1,820)

Share-based compensation

225

225

225

Expired options

5,755

(5,755)

Balance as of December 31, 2023

253,882

9,637

95

(249,145)

14,469

(769)

13,700

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

Canadian Dollars in thousands

Year ended December 31,

2023

2022

2021

Cash provided from operating activities:

Net loss

$     (10,228)

$ (191,301)

$   (18,518)

Adjustments for non-cash items:

Unrealized gain on changes in fair value of biological assets

(84)

(7,210)

Fair value adjustment on sale of inventory

984

4,342

8,796

Fair value adjustment on warrants, investments, and accounts receivable

(6,955)

(6,000)

(21,638)

Depreciation of property, plant and equipment

644

3,044

3,021

Amortization of intangible assets

1,758

2,343

1,158

Depreciation of right-of-use assets

594

1,944

1,550

Impairment of goodwill

107,854

275

Impairment of property, plant and equipment

2,277

Impairment of intangible assets

7,199

Impairment of right-of-use assets

1,914

Finance income, net

3,019

6,532

1,262

Deferred tax payments (benefit), net

394

(3,004)

278

Share-based payments

225

3,767

7,471

Share based acquisition costs related to business combination

807

Revaluation of other accounts receivable

3,982

Restructuring expenses

8,757

Loss from revaluation of investments

601

1,264

144,867

(4,230)

Changes in non-cash working capital:

Increase (decrease) in trade receivables, net

2,320

6,058

(6,602)

Increase (decrease) in other accounts receivable and advances to suppliers

1,299

3,622

845

Decrease in biological assets, net of fair value adjustments

565

6,412

Increase (decrease) in inventory, net of fair value adjustments

4,771

883

(19,707)

Increase (decrease) in trade payables

(6,098)

11,284

5,573

Changes in employee benefit liabilities, net

(139)

(63)

28

Increase in other accounts payable and accrued expenses

(750)

12,126

2,661

1,403

34,475

(10,790)

Taxes paid

(514)

(681)

(834)

Net cash used in operating activities

(8,075)

(12,640)

(34,372)

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

Canadian Dollars in thousands

Year ended December 31,

2023

2022

2021

Cash flows from investing activities:

Purchase of property, plant and equipment

(581)

(1,562)

(4,578)

Proceeds from sales of property, plant and equipment

210

Proceeds from loans receivable

350

7,796

Purchase of intangible assets

(17)

Acquisition of businesses, net of cash acquired

(12,536)

Deconsolidation of subsidiary (see Note 25)

(406)

Investments in financial assets

(13)

Proceeds from sale of investment

319

Proceeds from (investment in) restricted deposits

17

Investments in associates

(601)

(125)

Net cash used in investing activities

(1,182)

(1,533)

(9,012)

Cash provided by financing activities:

Proceeds from issuance of share capital, net of issuance costs

1,688

3,756

28,131

Proceeds from issuance of warrants measured at fair value

6,585

11,222

Proceeds from exercise of warrants

3,682

Proceeds from exercise of options

333

133

Repayment of lease liability

(586)

(1,656)

(633)

Payment of lease liability interest

(63)

(1,429)

(1,347)

Proceeds from loans

5,482

9,636

7,804

Repayment of loans

(4,827)

(4,976)

Interest paid

(1,664)

(902)

(261)

Proceeds from discounted checks

2,802

Net cash provided by financing activities

9,417

4,762

48,731

Effect of foreign exchange on cash and cash equivalents

(796)

(2,043)

(329)

Increase (decrease) in cash and cash equivalents

(636)

(11,454)

5,018

Cash and cash equivalents at beginning of year

2,449

13,903

8,885

Cash and cash equivalents at end of year

$      1,813

$      2,449

$    13,903

Supplemental disclosure of non-cash activities:

Right-of-use asset recognized with corresponding lease liability

$         309

$         613

$      1,678

Conversion of warrant and compensation options into common shares

$                 –

$             –

$         611

Issuance of shares in payment of purchase consideration liability

$                 –

$      3,061

$             –

Issuance of shares in payment of debt settlement to a non-independent director of the company

$      1,061

$             –

$             –

 

 

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