Cannabis
With 28% CAGR, Legal Marijuana Market Size to Hit $97 Billion by 2026 | Legal Marijuana Industry Growth, Statistics, Share, Trends, Analysis & Forecast Report by Facts & Factors
NEW YORK, United States, Aug. 28, 2022 (GLOBE NEWSWIRE) — According to Facts and Factors has published a new research report titled “Legal Marijuana Market by Product Type (Buds/marijuana Flower, Cannabis Extracts, Oil, Tinctures) & Others, Species (Cannabis Indica, Cannabis Sativa, Cannabis Hybrid), Strains (THC, CBD, Balanced THC and CBD), Purchase Channel (Online, Offline), Application (Medical, Recreational, Cosmetics) & Others, End-Use Industries (Pharmaceutical, Food, Beverages, and Tobacco, Personal Care, Research and Development Centers), and Geography – Global & Regional Industry Perspectives, Comprehensive Industry Analysis, and Forecast 2020 – 2026” in its research database.
“According to the latest research study, the demand of global Legal Marijuana Market size & share in terms of revenuewas valued at USD 22 billion in 2020 and it is expected to surpass around USD 97 billion mark by 2026, growing at a compound annual growth rate (CAGR) of approximately 28% during the forecast period 2021 to 2026.”
What is Legal Marijuana? How big is the Legal Marijuana Industry?
Market Overview:
Marijuana is produced from the dried flowers and leaves of the cannabis plant, which are also referred to variously as hemp, weed, dope, or cannabis. Marijuana contains both psychoactive compounds like Tetrahydrocannabinol, also known as THC, and non-psychoactive active compounds like cannabidiol (CBD). Tetrahydrocannabinol (THC) is the compound responsible for the mind-altering effects of marijuana (CBD). One of the drugs that are abused the most frequently all over the world is marijuana. Marijuana is obtained from the hemp plant, and the “drug” is most frequently produced in the flowers (also known as “buds”) of the plant. The seeds, leaves, and stems of the plant contribute only a very small amount to the final product.
Marijuana is a product that is sold and consists of a combination of dried hemp plant leaves, stems, flowers, and seeds. In most cases, it is green, brown, or grey in hue. A psychoactive substance is anything that can produce an altered state of consciousness, such as alcohol, cocaine, or ecstasy. Marijuana, like these other types of medications, is known to have the potential to cause adverse side effects.
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Market Dynamics:
The demand for legalized marijuana is rapidly increasing, especially in countries where marijuana for medicinal purposes and for food & beverages is legal. CBD isolates will see even more development in the coming years thanks to a recent novel food ruling in Europe. Furthermore, children who consume cannabis are only prescribed oil because it has proven to be effective in the treatment of conditions such as epilepsy. Owing to shifts in government policy, the market for legal marijuana is expected to skyrocket. Several new cannabis start-ups are pursuing R&D, research, and manufacturing. The privatization of cannabis retail stores is anticipated in several provinces.
Several provinces that previously selected a single supplier are now encouraging several suppliers to submit bids. Over the forecast period, these factors are expected to drive the market. The increasing legalization of cannabis in several countries is a major factor driving market development. Marijuana’s efficacy for medicinal purposes is gaining traction around the world as a result of recent legalizations in several countries. Medicinal hemp is used to treat chronic diseases like cancer, arthropathy, and neurological conditions like depression, panic attacks, Alzheimer’s disease, and Parkinson’s disease. The high prevalence of cancer is expected to be a critical factor driving the need for marijuana legalization.
However, the various contradictory conclusions about smoking cannabis, such as mucus composition, persistent cough, and respiratory infections like COPD, will serve as a market restriction. The wide legalization of marijuana in this manner will have a variety of consequences for the economy and culture of the countries where it is legalized. Legalization requires policymakers to apply application-based regulations to marijuana production and distribution, meaning that it contributes to the country’s GDP. Legalization also aids in the eradication of gangs and black-market traffickers, as well as the reduction of related crime rates.
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Legal Marijuana Market: COVID-19 Impact Analysis
The World Health Organization has designated the year 2019 as the “Year of Healthcare Emergence.” In an effort to stop the spread of the coronavirus, the government of the United States declared it a pandemic, and many other countries instituted travel restrictions and prohibitions on airlines. Marijuana may be helpful in mitigating the mild side effects of covid-19. As a consequence of this, there has been a significant increase in the market for marijuana, which is frequently utilized in medical applications. This is because of the epidemic in research and development efforts.
The rapid increase in significant research and development operations to better understand the application spectrum of legalized marijuana primarily used for medicinal purposes should bode well for market expansion in the next few years. Not only for the treatment of COVID-19, but also for a variety of other conditions. It is possible that during the next few years, a greater number of countries may pass legislation to decriminalize marijuana, which will result in an expansion of the field of medicine in which it can be used therapeutically. The use of these materials in the production of a vaccine to treat Covid-19 has yielded encouraging results thus far. It is anticipated that market shares would return to normal levels by the year 2020. According to the World Health Organization (WHO), over eighty percent of people around the world consume some kind of marijuana or cannabis for therapeutic reasons. As a direct consequence of this, the rising levels of tolerance for cannabis as well as its cultivation and production in developing nations are helping to propel the growth of the medical cannabis market.
Legal Marijuana Market: Segmentation Analysis
The legal marijuana market is segmented based on product type, species, strain, purchase channel, application, and end-user.
As per product type segmentation, the market is divided into Buds/marijuana flower, cannabis extracts (oil, tinctures), others. Based on species type segmentation, the market is classified into Cannabis Indica, Cannabis Sativa, and Cannabis Hybrid. Based on strain type segmentation, the market is classified into THC-dominant, CBD-dominant, Balanced THC, and CBD. Based on purchase channel segmentation, the market is classified into online, offline. In terms of application, the market is split into Medical (Chronic Pain, Mental Disorders, Cancer), Recreational, Cosmetics & Others. As per the end-user type, the market is bifurcated into pharmaceutical, food, beverages, and Tobacco, personal care, research, and development centers. The use of medical marijuana is critical for a variety of reasons.
Medical marijuana is provided to patients with chronic illnesses including Parkinson’s, cancer, Alzheimer’s, and a variety of neurological disorders. The demand for cannabis oil is rapidly increasing, especially in countries where medical marijuana is legal. CBD isolates will see even more development in the coming years thanks to a recent novel food ruling in Europe. Furthermore, children who consume cannabis are only prescribed oil because it has proven to be effective in the treatment of conditions such as epilepsy. The adoption of new and advanced technologies, which has made them more multifunctional, has provided the industry with many lucrative growth opportunities in the coming years.
The global Legal Marijuana market is segmented as follows:
By Product Type
- Buds/Marijuana Flower
- Cannabis Extracts
- Oil
- Tinctures
- Others
By Species
- Cannabis Indica
- Cannabis Sativa
- Cannabis Hybrid
By Strain
- THC-dominant
- CBD-dominant
- Balanced THC and CBD
By Purchase Channel
- Online
- Offline
By Application
- Medical
- Chronic Pain
- Mental Disorders
- Cancer
- Recreational
- Cosmetics
- Others
By End-User:
- Pharmaceutical
- Food, Beverages, and Tobacco
- Personal Care
- Research and Development Centers
Browse the full “Legal Marijuana Market by Product Type (Buds/marijuana Flower, Cannabis Extracts, Oil, Tinctures) & Others, Species (Cannabis Indica, Cannabis Sativa, Cannabis Hybrid), Strains (THC, CBD, Balanced THC and CBD), Purchase Channel (Online, Offline), Application (Medical, Recreational, Cosmetics) & Others, End-Use Industries (Pharmaceutical, Food, Beverages, and Tobacco, Personal Care, Research and Development Centers), and Geography – Global & Regional Industry Perspectives, Comprehensive Industry Analysis, and Forecast 2020 – 2026” Report at https://www.fnfresearch.com/legal-marijuana-market
Competitive Landscape:
Some of the main competitors dominating the global Legal Marijuana market include –
- Canopy Growth Corporation Aphria Inc.
- Aurora marijuana Inc.
- Maricann Group Inc.
- Tilray Inc.
- Cronos Group Inc.
- OrganiGram Holding Inc.
- VIVO marijuana Inc.
- TikunOlam Ltd.
- The Green Organic Dutchman Holdings Ltd.
- Terra Tech Corp.
- Medical Cannabis Inc.
- Stenocare A/S
- Cannabis Science Inc.
- HEXO Corp
Key Insights from Primary Research:
- According to the analysis shared by our research forecaster, the Legal Marijuana market is likely to expand at a CAGR of around 28% during the forecast period (2021-2026).
- In terms of revenue, the Legal Marijuana market size was valued at around US$ 22 billion in 2020 and is projected to reach US$ 97 billion by 2026.
- New developments in technology, such as DNA sequencing and genetic mapping of cannabis, present numerous growth opportunities.
- Medical Marijuana is in high demand, particularly in nations that have legalised its medical use, on the basis of geography.
- North America’s market growth will be 89% during the projection period.
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Key questions answered in this report:
- What is the market size and growth rate forecast for Legal Marijuana industry?
- What are the main driving factors propelling the Legal Marijuana Market forward?
- What are the leading companies in the Legal Marijuana Industry?
- What segments does the Legal Marijuana Market cover?
- How can I receive a free copy of the Legal Marijuana Market sample report and company profiles?
Key Offerings:
- Market Size & Forecast by Revenue | 2021−2026
- Market Dynamics – Leading Trends, Growth Drivers, Restraints, and Investment Opportunities
- Market Segmentation – A detailed analysis by Product Type, Species, Strain, Purchase Channel, Application, End-User, and Region
- Competitive Landscape – Top Key Vendors and Other Prominent Vendors
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(We tailor your report to meet your specific research requirements. Inquire with our sales team about customising your report.)
Regional Analysis:
North America was in charge of the global marijuana business in 2020. During the forecast period, the region will provide many opportunities for market vendors to expand. Over the projection period, legal cannabis market expansion in this area will be fueled by the legalization of cannabis and the growing number of patients who require medical cannabis. During the projection period, North America will account for 89 percent of market growth. The expansion of the target market is likely to be aided by favorable government laws and the launch of newer pharmaceuticals by drug makers. Major businesses’ increased investments in R&D operations, as well as their acquisition operations for company development, are likely to bolster the expansion of the legal marijuana market and meet business in North America.
By Region
- North America
- U.S.
- Canada
- Rest of North America
- Europe
- France
- UK
- Spain
- Germany
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
Report Scope
Report Attribute | Details |
Market Size in 2020 | USD 22 Billion |
Projected Market Size in 2026 | USD 97 Billion |
CAGR Growth Rate | 28% CAGR |
Base Year | 2020 |
Forecast Years | 2021-2026 |
Key Market Players | Canopy Growth Corporation Aphria Inc., Aurora marijuana Inc., Maricann Group Inc., Tilray Inc., Cronos Group Inc., OrganiGram Holding Inc., VIVO marijuana Inc., TikunOlam Ltd., The Green Organic Dutchman Holdings Ltd., Terra Tech Corp., Medical Cannabis Inc., Stenocare A/S, Cannabis Science Inc., HEXO Corp and amongst others. |
Key Segment | By Product Type, Species, Strain, Purchase Channel, Application, End-User, and Region |
Major Regions Covered | North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
Purchase Options | Request customized purchase options to meet your research needs. |
To know an additional revised 2022 list of market players, request a sample report @ https://www.fnfresearch.com/sample/legal-marijuana-market
Browse Other Related Research Reports from Facts & Factors:
Global Medical Marijuana Market: https://www.fnfresearch.com/medical-marijuana-market
Global Industrial Hemp Market: https://www.fnfresearch.com/industrial-hemp-market
Global Cannabis Concentrate Market: https://www.fnfresearch.com/global-cannabis-concentrate-market-by-product-type-vape
Global Cannabis Infused Beauty Products Market: https://www.fnfresearch.com/global-cannabis-infused-beauty-products-market-by-product
Global CBD Infused Beverages Market: https://www.fnfresearch.com/cbd-infused-beverages-market
Global Cannabis in Food and Beverage Market: https://www.fnfresearch.com/cannabis-in-food-and-beverage-market
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Cannabis
Mikra Announces Partnership with Virun NutraBiosciences Inc. and Releases CELLF 2.0
Cannabis
IM Cannabis Reports First Quarter Financial Results
IMC prepares for accelerated growth after legalization in Germany and recovers from the impact of the Israel-Hamas war.
TORONTO and GLIL YAM, Israel, May 8, 2024 /PRNewswire/ — IM Cannabis Corp. (the “Company” or “IMC“) (NASDAQ: IMCC) (CSE: IMCC), an international medical cannabis company, announced its financial results today for the first quarter ended March 31, 2024. All amounts are reported in Canadian dollars and compared to the quarter ended March 31, 2023, unless otherwise stated.
Q1 2024 Financial Highlights
- 13% Revenue increase vs. Q4 2023 of $12.1M vs. $10.7M and 4% decrease vs. Q1 2023 of $12.5M
- 125% Gross profit increase vs. Q4 2023 of $1.8M vs. $0.8 and 39% Gross profit decrease vs. Q1 2023 of $2.9M
- 29% decrease in operating expenses vs. Q1 2023 excluding the one-time Oranim revoke related losses of $4.6M vs. $6.5M and 14% increase including Oranim
- 12% increase of Non-IFRS Adjusted EBITDA loss to $2.1M
Operational Highlights
The Company intends to complete a non-brokered private placement (the “Offering“) of secured convertible debentures of the Company (each, a “Debenture“) for aggregate proceeds of up to C$2,500,000. The Debentures will mature on the date that is 12 months from the date of issuance and will not incur interest except in the event of default. The Debentures are being issued to holders of short term loans and obligations owed by the Company or its wholly owned subsidiaries. The principal of the Debenture may be converted into common shares in the Company (each, a “Share“) at a conversion price of $1.08 per Share.
Management Commentary
“With the April 1st cannabis legalization in Germany, we are augmenting our focus and resources on the German market, where we expect to see the biggest growth potential, and the best return on investment. While it is still too early to make any predictions, our sales in Germany almost doubled during the month of April,” said Oren Shuster, Chief Executive Officer of IMC. “Looking back on the first month post legalization in Germany, I see that we have the infrastructure and the supply agreements in place to continue delivering the accelerated growth we have already seen in April. We will also ensure that we have the necessary resources in place for success.”
“In 2023 we completely restructured, becoming a very lean and agile company, leaning into active cost management. This process is reflected in the numbers, our G&A decreased 27% vs Q1 2023” said Uri Birenberg, Chief Financial Officer of IMC. “While our results have recovered from the impact of the Israel-Hamas war, our revenue was still effected by both an unfavorable exchange rate, as well as price reductions to sell off inventory.”
Q1 2024 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.
Q1 2024 Financial Results
- Revenues for the first quarter of 2024 were $12.1 million compared to $12.5 million in the first quarter of 2023, a decrease of 3%. The decrease is mainly due an exchange rate effect of about $0.2 million and decrease in avg. price per sale due to increased competition.
- Gross profit for the first quarter of 2024 was $1.8 million, compared to $2.9 million in Q1 2024, a decrease of 39%. The downside is attributed mainly to the slow-moving stock that was moved out at a lower price and an exchange rate difference totaling $0.4 million and $0.64 million cost of sales loss due to an inventory erase of the slow-moving stock. Company fair value adjustment was $0 and $0.4 million for the Q1 2024 and Q1 2023 respectively.
- Total Dried Flower sold in Q1 2024 was approximately 1,873 kg with an average selling price of $5.68 per gram, compared to approximately 1,842kg in Q1 2023, with an average selling price of $6.59 per gram. This difference is mainly due to increased competition within the retail segment, and mid-range stock discounts to move out slow moving stock.
- Total operating expenses in Q1 2024 were $7.4 million compared to $6.5 million in Q1 2023. The increase is due to the other operating expenses related to Oranim Deal revoke, with an expected losses of $2.8 million. Adjusting for this one-time losses, Q1 2024 operating expenses were $4.6 million compared to $6.5 million in Q1 2023, a decrease of 29%.
- G&A Expenses in Q1 2024 were $2.3 million, compared to $3.2 million in Q1 2023, a decrease of 28%. The decrease in the G&A expense is attributable mainly to salaries and professional services of $0.64 million.
- Selling and Marketing Expenses in Q1 2024 were $2.3 million, compared to $2.8 million in Q1 2023, a decrease of 18% mainly due to a decrease in Salaries and professional services of $0.5 million.
- Net Loss from continuing operations in Q1 2024 was $6.0 million, compared to $0.9 million in Q12023.
- Basic and diluted Loss per Share in Q1 2024 was $0.42, compared to a loss of $0.05 per Share in Q1 2023.
- Non-IFRS Adjusted EBITDA loss in Q1 2024 was $2.1 million, compared to an Adjusted EBITDA loss of $1.9 million in Q1 2023 an increase of 10%.
- Cash and Cash Equivalents as of March 31, 2024, were $1.0 million compared to $1.8 million in December 31, 2023.
- Total assets as of March 31, 2024, were $41.1 million, compared to $48.8 million in December 31, 2023, a decrease of 16%. The decrease is mainly attributed to the goodwill reduction due to Oranim agreement cancelation of about $2.8M, a reduction in Inventory of $2.1 million, reduction of Cash and cash equivalents of $0.8M and reduction in Trade payables of $1.2 million.
- Total Liabilities as of March 31, 2024, were $32.8 million, compared to $35.1 in December 31, 2023, a decrease of about 7%. The decrease was mainly due to the reduction in other accounts payables and accrued expenses of $1.8 million and reduction in the PUT option liability of $0.7 million.
The Company’s financial statements as of March 31, 2024 includes a note regarding the Company’s ability to continue as a going concern. The Company’s Q1 2024 financial results 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 Company’s management’s discussion and analysis for the quarter ended March 31, 2024.
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 Company’s management’s discussion and analysis for the period ended March 31, 2024, available under the Company’s SEDAR+ profile at www.sedarplus.ca on EDGAR at www.sec.gov/edgar.
We reconcile these non-IFRS financial measures to the most comparable IFRS measures as set out below.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
||||||
Canadian Dollars in thousands |
||||||
March 31, |
December 31, |
|||||
Note |
(Unaudited) |
|||||
ASSETS |
||||||
CURRENT ASSETS: |
||||||
Cash and cash equivalents |
$ 1,048 |
$ 1,813 |
||||
Trade receivables |
6,506 |
7,651 |
||||
Advances to suppliers |
780 |
936 |
||||
Other accounts receivable |
3,732 |
3,889 |
||||
Inventories |
3 |
7,901 |
9,976 |
|||
19,967 |
24,265 |
|||||
NON-CURRENT ASSETS: |
||||||
Property, plant and equipment, net |
4,939 |
5,058 |
||||
Investments in affiliates |
2,078 |
2,285 |
||||
Right-of-use assets, net |
1,243 |
1,307 |
||||
Intangible assets, net |
5,440 |
5,803 |
||||
Goodwill |
7,442 |
10,095 |
||||
21,142 |
24,548 |
|||||
Total assets |
$ 41,109 |
$ 48,813 |
||||
The accompanying notes are an integral part of the interim condensed consolidated financial statements. |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
||||||
Canadian Dollars in thousands |
||||||
March 31, |
December 31, |
|||||
Note |
(Unaudited) |
|||||
LIABILITIES AND EQUITY |
||||||
CURRENT LIABILITIES:
|
||||||
Trade payables |
$ 9,511 |
$ 9,223 |
||||
Bank loans and credit facilities |
11,941 |
12,119 |
||||
Other accounts payable and accrued expenses |
4,440 |
6,218 |
||||
Accrued purchase consideration liabilities |
2,165 |
2,097 |
||||
PUT Option liability |
1,967 |
2,697 |
||||
Current maturities of operating lease liabilities |
461 |
454 |
||||
30,485 |
32,808 |
|||||
NON-CURRENT LIABILITIES:
|
||||||
Warrants measured at fair value |
4 |
137 |
38 |
|||
Operating lease liabilities |
744 |
815 |
||||
Long-term loans |
401 |
394 |
||||
Employee benefit liabilities, net |
96 |
95 |
||||
Deferred tax liability, net |
902 |
963 |
||||
2,280 |
2,305 |
|||||
Total liabilities |
32,765 |
35,113 |
||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY: |
5 |
|||||
Share capital and premium |
253,887 |
253,882 |
||||
Translation reserve |
1,399 |
95 |
||||
Reserve from share-based payment transactions |
9,664 |
9,637 |
||||
Accumulated deficit |
(255,431) |
(249,145) |
||||
Total equity attributable to equity holders of the Company |
9,519 |
14,469 |
||||
Non-controlling interests |
(1,175) |
(769) |
||||
Total equity |
8,344 |
13,700 |
||||
Total liabilities and equity |
$ 41,109 |
$ 48,813 |
||||
The accompanying notes are an integral part of the interim condensed consolidated financial statements. |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS |
||||||
AND OTHER COMPREHENSIVE INCOME (UNAUDITED) |
||||||
Canadian Dollars in thousands, except per share data |
||||||
Three months ended March 31, |
||||||
Note |
2024 |
2023 (*) |
||||
Revenues |
$ 12,063 |
$ 12,529 |
||||
Cost of revenues |
10,274 |
9,286 |
||||
Gross profit before fair value adjustments |
1,789 |
3,243 |
||||
Fair value adjustments: |
||||||
Realized fair value adjustments on inventory sold in the period |
(10) |
(339) |
||||
Total fair value adjustments |
(10) |
(339) |
||||
Gross profit |
1,779 |
2,904 |
||||
General and administrative expenses |
2,332 |
3,175 |
||||
Selling and marketing expenses |
2,292 |
2,805 |
||||
Restructuring expenses |
– |
283 |
||||
Share-based compensation |
32 |
258 |
||||
Other operating expenses |
9 |
2,753 |
– |
|||
Total operating expenses |
7,409 |
6,521 |
||||
Operating loss |
5,630 |
3,617 |
||||
Finance income |
4 |
(14) |
3,530 |
|||
Finance expense |
(487) |
(795) |
||||
Finance income, net |
(501) |
2,735 |
||||
Gain (loss) before income taxes |
(6,131) |
(882) |
||||
Income tax benefit |
(111) |
(16) |
||||
Net )loss( gain |
(6,020) |
(866) |
||||
Other comprehensive income that will not be reclassified to profit or loss in |
||||||
Total other comprehensive income that will not be reclassified to profit or loss |
67 |
36 |
||||
Exchange differences on translation to presentation currency |
1,330 |
(562) |
||||
Total other comprehensive income (loss) that will not be reclassified to profit |
1,397 |
(526) |
||||
Other comprehensive income that will be reclassified to profit or loss in |
||||||
Adjustments arising from translating financial statements of foreign operation |
(35) |
155 |
||||
Total other comprehensive income (loss) that will be reclassified to profit or loss |
(35) |
155 |
||||
Total other comprehensive income (loss) |
1,362 |
(371) |
||||
Total comprehensive loss |
$ (4,658) |
$ (1,237) |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS |
||||||
AND OTHER COMPREHENSIVE INCOME (UNAUDITED) |
||||||
Canadian Dollars in thousands, except per share data |
||||||
Three months ended March 31, |
||||||
Note |
2024 |
2023 (*) |
||||
Net income (loss) attributable to: |
||||||
Equity holders of the Company |
(5,623) |
(600) |
||||
Non-controlling interests |
(397) |
(266) |
||||
$ (6,020) |
$ (866) |
|||||
Total comprehensive income (loss) attributable to: |
||||||
Equity holders of the Company |
(4,252) |
(959) |
||||
Non-controlling interests |
(406) |
(278) |
||||
$ (4,658) |
$ (1,237) |
|||||
Net income (loss) per share attributable to equity holders of the Company: |
7 |
|||||
Basic and diluted (loss) gain per share (in CAD) |
$ (0.42) |
$ (0.05) |
||||
Earnings (loss) per share attributable to equity holders of the Company |
||||||
Basic and diluted (loss) gain per share (in CAD) |
$ (0.42) |
$ (0.05) |
||||
(*) See note 1 regarding figures disclosure. |
||||||
The accompanying notes are an integral part of the interim condensed consolidated financial statements. |
||||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||
Canadian Dollars in thousands |
||||
Three months ended March 31, |
||||
2024 |
2023 (*) |
|||
Cash provided by operating activities: |
||||
Net income (loss) for the period |
$ (6,020) |
$ 43 |
||
Adjustments for non-cash items: |
||||
Fair value adjustment on sale of inventory |
10 |
339 |
||
Fair value adjustment on Warrants, investments and accounts receivable |
100 |
(3,636) |
||
Depreciation of property, plant and equipment |
147 |
174 |
||
Amortization of intangible assets |
452 |
456 |
||
Depreciation of right-of-use assets |
118 |
179 |
||
Impairment of goodwill |
2,753 |
– |
||
Finance expenses, net |
401 |
635 |
||
Deferred tax liability, net |
(69) |
(150) |
||
Share-based payment |
32 |
258 |
||
Restructuring expense |
– |
283 |
||
3,944 |
(1,462) |
|||
Changes in working capital: |
||||
Decrease (increase) in trade receivables |
1,332 |
1,937 |
||
Decrease (increase) in other accounts receivable and advances to suppliers |
159 |
(940) |
||
Decrease (increase) in inventories, net of fair value adjustments |
2,159 |
90 |
||
Decrease (increase) in trade payables |
663 |
(6,021) |
||
Changes in employee benefit liabilities, net |
– |
(22) |
||
Increase in other accounts payable and accrued expenses |
(2,745) |
(14) |
||
1,568 |
(4,970) |
|||
Taxes (paid) received |
(121) |
328 |
||
Net cash used in operating activities |
(629) |
(6,061) |
||
Cash flows from investing activities: |
||||
Purchase of property, plant and equipment |
(2) |
(411) |
||
Payment of purchase consideration |
– |
(56) |
||
Net cash used in investing activities |
$ (2) |
$ (467) |
||
The accompanying notes are an integral part of the interim condensed consolidated financial statements. |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||
Canadian Dollars in thousands |
||||
Three months ended March 31, |
||||
2024 |
2023 |
|||
Cash flow from financing activities: |
||||
Proceeds from issuance of share capital, net of issuance costs |
176 |
825 |
||
Proceeds from issuance of warrants |
(176) |
7,027 |
||
Repayment of lease liability |
(118) |
(175) |
||
Interest paid – lease liability |
(15) |
(18) |
||
Receipt (repayment) of bank loan and credit facilities |
(2,856) |
(1,046) |
||
Cash paid for interest |
(444) |
(56) |
||
Proceeds from discounted checks |
2,581 |
|||
Net cash (used in) provided by financing activities |
(852) |
6,557 |
||
Effect of foreign exchange on cash and cash equivalents |
718 |
(1,059) |
||
Decrease in cash and cash equivalents |
(765) |
(1,030) |
||
Cash and cash equivalents at beginning of the period |
1,813 |
2,449 |
||
Cash and cash equivalents at end of the period |
$ 1,048 |
$ 1,419 |
||
Supplemental disclosure of non-cash activities: |
||||
Right-of-use asset recognized with corresponding lease liability |
$ 40 |
$ 49 |
||
Issuance of shares in payment of debt settlement to a non-independent director of the company |
$ – |
$ 222 |
||
(*) See note 1 regarding Figures disclosure. |
||||
The accompanying notes are an integral part of the interim condensed consolidated financial statements. |
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany, two of the largest medical cannabis markets. The Company has 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 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. The Company also operated in Canada through Trichome Financial Corp and its wholly owned subsidiaries. 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 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 legalization of medicinal cannabis in Germany, including, the Company having it “all in house”; the Company being positioned to take advantage of the legalization; the Company’s growth in 2024; the market growth for medicinal cannabis in Germany; 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 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 its subsidiaries (collectively, the “Group“) to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group’s obligations; the Group’s possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group’s cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt; risks surrounding war, conflict and civil unrest in Eastern Europe and the Middle East, including the impact of the Israel-Hamas war on the Company, its operations and the medical cannabis industry in Israel; risks associated with the Company focusing on the Israel and Germany markets; the inability of the Company to achieve sustainable profitability and/or increase shareholder value; the inability of the Company to actively manage costs and/or improve margins; the inability of the company to grow and/or maintain sales; the inability of the Company to meet its goals and/or strategic plans; the inability of the Company to reduce costs and/or maintain revenues; the Company’s inability to take advantage of the legalization of medicinal cannabis in Germany; and the Company’s inability to 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.
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
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View original content:https://www.prnewswire.co.uk/news-releases/im-cannabis-reports-first-quarter-financial-results-302139688.html
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