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Hemp Inc.’s King of Hemp Brand Offers Substantial Opportunity for Business Owners Through King of Hemp Stores

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LAS VEGAS, NV, Nov. 17, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — Hemp, Inc. (OTC PINK: HEMP), a leader in the industrial hemp market and manufacturer of King of Hemp® CBD and CBG products, is venturing into a phase of growth by offering an attractive business opportunity to stores around the United States.

The company is pleased to announce that entrepreneurs interested in opening a King of Hemp® store can do so now with very little barrier to entry.

King of Hemp® is not offering this retailer opportunity as a franchise or as a licensing agreement—retailers simply have to purchase $10,000 in King of Hemp® products to sell in their store. To put this number in perspective, the average cost of a franchise such as a McDonald’s is $500,000.

The announcement is part of a bold new strategy from Hemp, Inc. “We hope to have 200 or more King of Hemp® stores up and running in 2022,” said Hemp, Inc. president Jim Hancock. Anyone interested in opening a King of Hemp® store can email [email protected] for more information.

Shop owners can expect supply chain security through Hemp, Inc.’s existing infrastructure and the recent purchase of Ferris Holding, Inc.

Ferris Holding, Inc., a leading co-packer and manufacturer based in Las Vegas, was acquired by Hemp, Inc. in September 2021. The purchase allows Hemp, Inc. to expand its new product launches in the global hemp market.

Hemp, Inc. investors and shareholders can benefit from King of Hemp® stores as well. “The revenues produced from the King of Hemp® stores for Hemp, Inc. will be more than substantial,” said Hancock.

In late September of this year, Ukiah, Calif.-based Mamas Medicinals, a purveyor of its own custom botanical skin and body care line, became the second store in the United States to stock the entire King of Hemp® product line. This Mendocino County store offers only the finest CBD products, made with integrity and free of chemicals.

Mamas Medicinals opened in 2018 and is one of several CBD wellness stores in the area. As part of the Emerald Triangle, the city of Ukiah—once named California’s best small town—has a thriving cannabis culture. Mamas Medicinals’ owner Emily Held is proud to carry the King of Hemp® line in her downtown store located at 328 N. State St. in Ukiah, just a few blocks west of U.S. Highway 101.

Hemp, Inc. began shipping its King of Hemp® product line to stores across the country in late 2020. King of Hemp® products are available in various locations across Florida, Arizona, Nevada and California, while The King of Hemp® online store offers consumers 24/7 convenience and secure online ordering.

Entrepreneurs interested in a King of Hemp® Store can email [email protected] for more details.

Hemp, Inc. has the largest industrial multipurpose hemp processing facility in North America, an 85,000-square foot facility in Spring Hope, N.C.

With more than 10 years of experience in growing and processing hemp in North America, Hemp, Inc. has an established network of industry professionals in every segment of the industrial hemp industry.

Hemp, Inc.’s mission to provide green solutions that help make the world a better place continues to flourish as the company advances an ever-growing portfolio of revenue- and value-generating synergistic businesses.

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 DIVISIONS

It 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.

Hemp, Inc.’s ten divisions are as follows:

Division One – The Industrial Hemp Infrastructure 

Division Two – The Hemp Farming Infrastructure

Division Three – The Hemp Pre-Roll Blending Infrastructure 

Division Four – The Hemp Educational Infrastructure 

Division Five – The Hemp Marketing Infrastructure 

Division Six – Accessories, Products and Services 

Division Seven – Research and Development

Division Eight – Industrial Hemp Investments and Joint Ventures 

Division Nine – Industrial Hemp Consulting

Division Ten – Educational Entertainment

Division One – The Industrial Hemp Infrastructure

The Industrial Hemp Infrastructure division consists of two hemp processing facilities. 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.”

The facility currently has approximately 769,794 pounds of raw kenaf bales, 363,225 pounds of DrillWall®; and 449,552 pounds of Spill-B-Gone™. That’s a total of approximately 1,582,571 pounds of product.

In addition to the company’s two industrial hemp processing facilities, Hemp, Inc. also acquired a significant manufacturer and co-packer, Ferris Holding Inc. (“Ferris”), headquartered in Las Vegas, Nevada. Hemp Inc.’s all stock acquisition of Ferris will provide cost savings and increased revenue of products developed, manufactured and co-packed by Ferris. As a leading co-packer and manufacturer, Ferris will expand Hemp, Inc.’s launching of new products in the hemp market that can be distributed and sold worldwide by Hemp, Inc. 

Hemp, Inc. and their associates also have land in Golden Valley, Arizona (100 miles from Las Vegas, 20 miles north of Kingman, AZ). A good portion of this land is designated for the Veteran’s Village Kins Community (VVKC) for Arizona and acres are being prepped for industrial hemp cultivation. The company aims to boost the economies of these small towns by offering affordable hemp processing services, which incentivizes local growers to add hemp to their crop rotation.

Division One Products:

DrillWall® (a loss circulation material)

Spill-Be-Gone® (an oil spill cleanup product)

Division Two – The Hemp Farming Infrastructure

The Hemp Farming Infrastructure (Division Two) consists of 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 seven years, has been amazing. (Visit www.hempincpresents.com/ to see the videos of Hemp, Inc. ‘s growth in multiple locations.)

Hemp, Inc. also has three “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. 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.

The other two “Small Family Hemp Farm” models are located in Dolan Springs, Arizona. One of which is referred to as “The Orchard” because it has a sizable organic orchard. There are 2 acres on which CBG hemp will be grown; a cloning room; cold storage; and a greenhouse that is planned to be installed.

Division Two Products include:

King of Hemp® Gummies – These CBD edibles come in a variety of flavors and potencies of 25 gm, 20 gm and 10 gm. Flavors include blue raspberry, kiwi, strawberry, pineapple, guava, tropical, apple, citrus, berry tang and more. CBD Fruit Rings (20 gm and 10 gm) are available in apple, peach and watermelon. King of Hemp® Sour Bears in assorted flavors (10 gm) are in stock, too. 

King of Hemp® Caviar (previously called Moon Rocks) offers high CBD potency and a rich taste. The Caviar is made from high-quality Bubba Kush hemp flower, coated in a THC-free distillate and then rolled in CBG-rich kief.

King of Hemp® Diamonds, which contain over 95% CBD, are derived from terpene-infused THC-free distillate.

King of Hemp® Pre-Rolls, robustly flavored, are made from organic, pesticide-free Bubba Kush hemp wrapped in RAW Natural Rolling Paper. The unique wrapper is made from 100% plants with no added chalk or dyes. Pre-Rolls are sold online as singles and in a six-pack.

Fortified Pre-Rolls, the highly potent, flavorful pre-rolls recommended for experienced smokers, utilize the King of Hemp® Pre-Roll and cover it with a high-CBD distillate and help kief. 

Midnight Express, a high CBG Pre-Roll, is made from premium hemp flowers, named in honor of the 1977 book by Billy Hayes ‘Midnight Express’, which was also an award-winning feature film, written by Oliver Stone. Hemp, Inc. uses a proprietary process for its Pre-Rolls, which includes blending the best flower from numerous hemp crops. King of Hemp® Pre-Rolls offer smokers a unique, consistent profile every time.

King of Hemp® Tinctures boast a new formulation that will be available at the King of Hemp® online store and at retail locations very soon.

Hemp, Inc. began shipping its King of Hemp® product line to stores across the country in late 2020.

Division Three – The Hemp Pre-Roll Blending Infrastructure

Hemp, Inc. acquired a significant manufacturer and co-packer, Ferris Holding Inc. (“Ferris”), headquartered in Las Vegas, Nevada. Hemp, Inc.’s all stock acquisition of Ferris will provide cost savings and increased revenue of products developed, manufactured and co-packed by Ferris. As a leading co-packer and manufacturer, Ferris will expand Hemp, Inc.’s launching of new products in the hemp market that can be distributed and sold worldwide by Hemp, Inc.

Ferris was founded and began operations in 2005 and has been the manufacturer of the King of Hemp® smokable product line for Hemp, Inc. With consistent stellar health department ratings and innovative manufacturing processes that increase quality while decreasing loss, Ferris is a highly respected manufacturer. The ownership of Ferris has agreed to allow their management team to stay on for at least one year, assuring a smooth transition to the management team at Hemp, Inc.

Division Four – The Hemp Educational Infrastructure

The Hemp Educational Infrastructure division 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 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). This symposium celebrated 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 and 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. 
  •  The Pre-Harvest Symposium – September 8, 2019 (Oregon). Held at Southern Oregon University, the symposium was expertly designed for both farmers and entrepreneurs of all experience levels and 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.
  •  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 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.
  •  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.
  •  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.
  •  Hemp Money Event: Economics, Lessons & Planning for 2018 – December 2, 2017 – (North Carolina). This was the fifth most vital and anticipated educational symposium of the year. Attendees learned the economics of growing industrial hemp for fiber, seeds, and CBD. They also 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.
  •  The Hemp Oil Event: The Art and Science of CBD Oil – September 30, 2017 (North Carolina). This 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.
  •  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.
  •  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.
  •  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.

To listen to past Hemp University workshops, please visit hemp-university.teachable.com. Also visit 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]).

Division Five – The Hemp Marketing Infrastructure

While 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 must be a strong foundation or infrastructure in place. Hemp, Inc. will continue to grow a rock-solid Hemp Marketing Infrastructure.

Division Six – Accessories, Products and Services

The Accessories, Products and Services division 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.

Hemp, Inc. plans on greatly expanding this division.

Division Seven – Research and Development

Hemp, Inc. is proud to have been a pioneer and leader in the early stages of the hemp industry in America. The Research and Development division has been an integral part of the company since day one. A formal research and development project is in the works and the company plans on expanding this division in the future.

Division Eight – 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. A joint venture agreement with Hemp, Inc. has been very appealing to investors because of the company’s vast network of experts and resources.

Division Nine – Industrial Hemp Consulting

Hemp, Inc.’s Industrial Hemp and Medical Marijuana Consulting Company (IHMMCC) was 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.

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 Industrial Hemp Consulting division, 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.

Division Ten – Educational Entertainment

Hemp, Inc.’s Entertainment division 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 docu-series 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 COMMUNITIES

To see the livestream feed for the Veteran’s Village Kins Community Arizona, visit www.hempinc.com/arizona and click on “View Live Feed” or visit www.kinscommunity.com and click on the “Livestream Video” tab.

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 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’s Village Kins Community is designed and watch it being built. The basic framework or overall plan of the Veteran’s 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.

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.

The VVKC will include a 100,000-square foot GMP compliant, central processing plant and various health and wellness centers to support veterans who may have psychological, emotional or health issues. It will also give veterans and other Americans a place to learn new skills and take part in this multi-billion-dollar hemp CBD market. It’s a big part of the company’s mission to give back. They have also expanded the Kins Community concept internationally focusing on, but not limited to, Israel, New Zealand, Canada, Africa, Australia and Jamaica. 

PRESS COVERAGE

Hemp, Inc. has created an enormous amount of media coverage. See below for the partial list of press hits the Company has received:

Press Release: “Hemp, Inc. Affiliate, Through a Joint Venture, Featured on Business Insider for North Carolina Farming Operations”

  •  Hit: “HEMP, INC. Joins The Stock Day Podcast to Discuss The Distribution of Their Hemp PreRolls” – Stock Day Podcast, September 27, 2019
  •  Press Release: “HEMP, INC. Joins The Stock Day Podcast to Discuss The Distribution of Their Hemp PreRolls”
  •  Hit: “Hemp hardwoods, bioplastics expand crop use beyond CBD” – United Press International, October 2, 2019
  •  Press Release: “Hemp, Inc. Featured in Globally Syndicated News Provider, United Press International, Discussing Industrial Applications for Bioplastics” 
  •  Hit: “Rising High: An Exclusive Talk with Industrial Hemp Company Hemp, Inc.” – The Fly, October 17, 2019 
  •  Press Release: “Hemp, Inc. Profiled in Financial News Outlet, The Fly”
  •  Hit: “Lack of Processing Facilities For Hemp” – ABC News Watch 12, October 30, 2019
  •  Press Release: “Hemp, Inc. Oregon Processing Operation Featured in NewsWatch 12’s Harvest Coverage”
  •  Hit: “Hemp farmers in red tape” – CBS News 10, November 5, 2019
  •  Press Release: “Hemp, Inc.’s Commentary on New USDA Rules Featured in KTVL Broadcast and Smoky Mountain News”
  •  Hit: “Legislature to ban smokable hemp in N.C.” – Smoky Mountain News, November 6, 2019 
  •  Press Release: “Hemp, Inc.’s Commentary on New USDA Rules Featured in KTVL Broadcast and Smoky Mountain News”
  •  Hit: “Hemp Inc. CEO, Bruce Perlowin Interview” – The Light, November 13, 2019
  •  Press Release: “Hemp, Inc. CEO Bruce Perlowin Joins News Video Series, The Light, to Discuss Company Initiatives”
  •  Hit: “Hemp Industry Prime for Post-Pandemic Growth” – Cannabis Tech, April 17, 2020
  •  Hit: “Cannabis Businesses During the Coronavirus” – Way of Leaf, April 17, 2020
  •  Hit: “American Hemp Farmers Table Talk” – Youtube, May 26, 2020
  •  Hit: E.95 Changing the World through Hemp ft. “King of Pot Stocks” Bruce Perlowin – Lit & Lucid Podcast, July 7, 2020
  •  Press Release: “Hemp, Inc. Reports South Carolina Now Accepting Hemp Farming Applications for the 2021 Growing Season 
  •  Press Release: “Hemp, Inc. Plans Massive Expansion in Florida”
  •  Press Release: “Hemp, Inc. Reports: Cannabis Stocks Soar as Senate Pushes for Cannabis Reform” 
  •  Press Release: “Hemp, Inc. Highlighted as a Major Player in the Industrial Hemp Market by Verified Market Research Report”
  •  Press Release: “USDA’s Final Hemp Rule on Domestic Hemp Production to Go Into Effect Early Next Week: Hemp, Inc. Reports”

FORWARD-LOOKING DISCLAIMER AND DISCLOSURES

This 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”. Financials for Hemp, Inc. are listed on the OTC Exchange. More information can also be found out the Hemp, Inc. website by visiting www.hempinc.com/hemp-financial-disclosures/. 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 involve risks, uncertainties.

855-436-7688

[email protected]

Cannabis

IM Cannabis Reports 2023 Financial Results

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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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