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IM Cannabis Reports Second Quarter Financial Results

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IMC Germany delivers +200% in sales in first three months after German legalization, while overall revenue grows 12% vs Q2 2023

TORONTO and GLIL YAM, Israel, Aug. 14, 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 second quarter ended June 30, 2024. All amounts are reported in Canadian dollars and compared to the quarter ended June 30, 2023, unless otherwise stated.

Q2 2024 Financial Highlights

  • 12% Revenue increase to $14.8M vs. $13.2M in Q2 2023

 

  • 129% increase in IMC Germany sales vs. Q2 2023 to $3.5M. IMC Germany sales now make up 24% of the entire Company revenue, a growth of +105% vs Q2 2023

 

  • 78% decrease in GM vs. 26% in Q2 2023 to 6% mainly caused by inventory clearance of $0.8M plus an accrual of $1.1M for slow moving stock

 

  • 29% decrease in operating expenses to $3.7M vs. $5.2M in Q2 2023

Management Commentary

“The German market is not just poised to start delivering significant growth after the April 1st cannabis legalization, we can already see the impact the legalization has had on our German business. We were well positioned to take advantage of the growing market and delivered a 200% increase in sales in Q2,” said Oren Shuster, Chief Executive Officer of IMC. “We are actively making sure that we are allotting the resources and support the German business needs to deliver further accelerated growth.”

“Our revenue in Q2 increased by 12 vs Q2 2023. This growth was driven in part by the 200% Germany grew in Q2 vs Q1 2024. Our selling price per gram of dried flower also increased 21% vs Q2 2023 to $6.09 per gram. In addition, our operating expenses continued to decrease by 29% vs Q2 2023, as a result of last year’s restructuring,” commented Uri Birenberg, Chief Financial Officer of IMC. “Conversely, we cleared old raw material and accrued for slow moving stock for total of about $1.9 million which impacted our cost of sales, gross margin, and gross profit.” 

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Q2 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.

Q2 2024 Financial Results

  • Revenues for the second quarter of 2024 were $14.8 million compared to $13.2 million in Q2 2023, an increase of $1.6 million or 11.7%. The increase is mainly attributed to accelerated growth in Germany revenue of $2 million net and decreased net Revenue in Israel of $0.4 million, which consists of Oranim deal cancellation effect in decreased Revenue of $2.4 million.

 

  • Total Dried Flower sold in Q2 2024 was approximately 2,333 kg with an average selling price of $6.09 per gram, compared to approximately 2,128kg in Q2 2023, with an average selling price of $5.04 per gram, which is an increase of 21%.

 

  • Cost of revenues for Q2 2024 were $13.9 million compared to $9.5 million in Q2 2023, an increase of $4.4 million or 46.6%, mainly due to an increase in Company revenue related costs of approximately $2.5 million, clearing of old raw materials of approximately $0.8 million and accrued for slow inventory of approximately $1.1 million.

 

  • Gross profit for the second quarter of 2024 was $0.8 million, compared to $3.5 million in Q2 2023, a decrease of 75.6%. The downside is attributed mainly to the clearing of old inventory, accrual for slow moving inventory of approximately $1.9 million and slow-moving stock that was moved out at a lower price. Company fair value adjustment was $0 and $0.3 million for the Q2 2024 and Q2 2023 respectively.

 

  • G&A Expenses in Q2 2024 were $2.2 million, compared to $2.4 million in Q2 2023, a decrease of $0.2 million or 9.5%. The decrease in the G&A expense is attributable mainly to insurance of approximately $0.2 million.

 

  • Selling and Marketing Expenses in Q2 2024 were $1.5 million, compared to $2.6 million in Q2 2023, a decrease of $1.1 million or 44% mainly due to the revocation of Oranim agreement of $0.6 million and decrease in salaries and professional services of $0.4 million.

 

  • Total operating expenses in Q2 2024 were $3.7 million compared to $5.2 million in Q2 2023, a decrease of $1.5 million or of 29% mainly due to decrease in salaries of approximately $0.4 million, insurance of $0.2 million, depreciation expenses of $0.3 million and professional services of $0.2 million.

 

  • Net Loss in Q2 2024 was $3.5 million, compared to $3.7 million in Q2 2023.

 

  • Basic and diluted Loss per Share in Q2 2024 was $0.23, compared to a loss of $0.26 per Share in Q2 2023.

 

  • Non-IFRS Adjusted EBITDA loss in Q2 2024 was $2.3 million, compared to an Adjusted EBITDA loss of $0.5 million in Q2 2023 a loss increase of 357%.

 

  • Cash and Cash Equivalents as of June 30, 2024, were $0.7 million compared to $1.8 million on December 31, 2023.

 

  • Total assets as of June 30, 2024, were $40.2 million, compared to $48.8 million on December 31, 2023, a decrease of $8.6 million or 17.6%.
    The decrease is mainly attributed to the Oranim agreement cancelation of $9.5 million of which mainly attributed to; goodwill $3.5 million, intangible asset $1.4 million, inventory $0.8 million, trade receivables $1.3 million and property plant and equipment $0.8 million and reduction of cash and cash equivalents of $0.3 million.
    In addition to the Oranim revocation agreement effect, there is a total asset increase of $0.9 million mainly due to an increase of $5.8 million in trade receivables offset by $3.4 million reduction in Inventory, reduction of Cash and cash equivalents of $0.8 million and reduction of $0.7 million in intangible assets.
  • Total Liabilities as of June 30, 2024, were $34.7 million, compared to $35.1 million on December 31, 2023, a decrease of $0.4 million or 1.1%.
    The decrease was mainly due to the Oranim agreement cancelation of $6.8 million of which mainly attributed to a decrease in PUT option liability in the amount of $2.0 million, a decrease in purchase consideration payable in the amount of $2.2 million, a decrease of $1.6 million in trade payables, a decrease of $0.4 million in lease liabilities and a decrease of $0.3 million in deferred tax liability.
    In addition to the Oranim revocation agreement effect, there is a total liabilities increase of $6.4 million mainly due to an increase of $6.2 million in trade payables offset by a $1.7 million reduction in other accounts payable.
    The Company’s financial statements as of June 30, 2024, includes a note regarding the Company’s ability to continue as a going concern. The Company’s Q2 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 June 30, 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.

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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 June 30, 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.

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.

Disclaimer for Forward-Looking Statements

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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: 

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

Oren Shuster, CEO
IM Cannabis Corp.
+972-77-3603504

 

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 

Canadian Dollars in thousands

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June 30, 2024

December 31, 2023

Note

(Unaudited)

(Audited)

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ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$              700

$           1,813

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Trade receivables

12,087

7,651

Advances to suppliers

788

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936

Other accounts receivable

3,648

3,889

Inventories

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3

5,719

9,976

22,942

24,265

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NON-CURRENT ASSETS:

Property, plant and equipment, net

4,052

5,058

Investments in affiliates

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2,284

2,285

Right-of-use assets, net

626

1,307

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Intangible assets, net

3,678

5,803

Goodwill

6,634

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10,095

17,274

24,548

Total assets

$          40,216

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$          48,813

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

 

 

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

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Canadian Dollars in thousands

June 30, 2024

December 31, 2023

Note

(Unaudited)

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(Audited)

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

 

Trade payables

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$       13,877

$              9,223

Bank loans and credit facilities

12,746

12,119

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Other accounts payable and accrued expenses

4,486

6,218

Accrued purchase consideration liabilities

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2,097

PUT Option liability

2,697

Convertible debt

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2,002

Current maturities of operating lease liabilities

292

454

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33,403

32,808

NON-CURRENT LIABILITIES:

 

Warrants measured at fair value

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4

57

38

Operating lease liabilities

301

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815

Long-term loans

401

394

Employee benefit liabilities, net

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47

95

Deferred tax liability, net

526

963

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1,332

2,305

Total liabilities

34,735

35,113

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EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:

5

Share capital and premium

253,966

253,882

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Translation reserve

1,579

95

Reserve from share-based payment transactions

9,673

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9,637

Conversion option for convertible debt

327

Accumulated deficit

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(258,478)

(249,145)

Total equity attributable to equity holders of the Company

7,067

14,469

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 Non-controlling interests

(1,586)

(769)

Total equity

5,481

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13,700

Total liabilities and equity

$       40,216

$           48,813

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

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INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

Canadian Dollars in thousands, except per share data

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Six months ended

June 30,

Three months ended

June 30,

2024

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2023

2024

2023

(Unaudited)

Revenues

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$     26,813

$     25,736

$     14,750

$     13,207

Cost of revenues

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24,165

18,759

13,891

9,473

Gross profit before fair value adjustments

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2,648

6,977

859

3,734

Fair value adjustments:

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Realized fair value adjustments on inventory sold in the period

(25)

(617)

(15)

(278)

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Total fair value adjustments

(25)

(617)

(15)

(278)

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Gross profit

2,623

6,360

844

3,456

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General and administrative expenses

4,495

5,563

2,163

2,389

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Selling and marketing expenses

3,773

5,427

1,481

2,622

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Restructuring expenses

617

334

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Share-based compensation

120

121

88

(137)

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Loss on deconsolidation

2,734

(19)

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Total operating expenses

11,122

11,728

3,713

5,208

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Operating loss

8,499

5,368

2,869

1,752

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Finance income (expenses), net

(1,927)

621

(1,426)

(2,114)

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Loss before income taxes

(10,426)

(4,747)

(4,295)

(3,866)

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Income tax benefit

(950)

(175)

(839)

(160)

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Net loss

(9,476)

(4,572)

(3,456)

(3,706)

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

Remeasurement gain on defined benefit plan

67

36

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Exchange differences on translation to presentation currency

1,517

(661)

187

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(99)

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

1,584

(625)

187

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(99)

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

Adjustments arising from translating financial statements of
 foreign operation

(26)

466

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9

311

Total other comprehensive income (loss) that will be reclassified
 to profit or loss in subsequent periods:

(26)

466

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9

311

Total other comprehensive income (loss)

1,558

(159)

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196

212

Total comprehensive loss

$     (7,918)

$     (4,731)

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$      (3,260)

$      (3,494)

 

 

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

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AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

Canadian Dollars in thousands, except per share data

Six months ended

June 30,

Three months ended

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June 30,

2024

2023

2024

2023

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Note

(Unaudited)

Net loss attributable to:

Equity holders of the Company

$    (8,652)

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$      (4,059)

$    (3,029)

$      (3,459)

Non-controlling interests

(824)

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(513)

(427)

(247)

$    (9,476)

$      (4,572)

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$    (3,456)

$      (3,706)

Total comprehensive loss attributable to:

Equity holders of the Company 

$    (7,101)

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$      (4,209)

$    (2,840)

$      (3,250)

Non-controlling interests 

(817)

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(522)

(420)

(244)

$    (7,918)

$      (4,731)

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$    (3,260)

$      (3,494)

 

Net income (loss) per share attributable to equity holders of the Company:

 

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6

Basic loss per share (in CAD)

$        (0.65)

$        (0.33)

$       (0.23)

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$       (0.26)

Diluted loss per share (in CAD)

$        (0.65)

$        (0.33)

$       (0.23)

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$       (0.26)

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

 

Basic loss per share (in CAD)

$        (0.65)

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$        (0.33)

$       (0.23)

$       (0.26)

Diluted loss per share (in CAD)

$        (0.65)

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$        (0.33)

$       (0.23)

$       (0.26)

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

 

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INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

Canadian Dollars in thousands

Share
Capital and
premium

Reserve from
share-based
payment
transactions

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Conversion
option for
convertible
debt

Translation
reserve

Accumulated
deficit

Total

Non-
controlling
interests

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Total
equity

Balance as of January 1, 2024

$        253,882

$            9,637

$              –

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$                  95

$      (249,145)

$      14,469

$           (769)

$         13,700

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Net loss

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(8,652)

(8,652)

(824)

(9,476)

Total other comprehensive loss

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1,484

67

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1,551

7

1,558

Total comprehensive loss

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1,484

(8,585)

(7,101)

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(817)

(7,918)

Net proceeds of convertible debt allocated to conversion option

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327

327

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327

Other comprehensive income Classification

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(748)

(748)

(748)

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Share-based compensation

120

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120

120

Forfeited options

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84

(84)

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Balance as of June 30, 2024

$        253,966

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$            9,673

$              327

$            1,579

$      (258,478)

$        7,067

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$          (1,586)

$            5,481

 

 

Share
Capital and
premium

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Reserve from
share-based
payment
transactions

Translation
reserve

Accumulated
deficit

Total

Non-
controlling
interests

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Total
equity

Balance as of January 1, 2023

$        245,776

$          15,167

$              1,283

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$      (239,574)

$      22,652

$              1,145

$         23,797

Net loss

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(4,059)

(4,059)

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(513)

(4,572)

Total other comprehensive loss

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(186)

36

(150)

(9)

(159)

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Total comprehensive loss

(186)

(4,023)

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(4,209)

(522)

(4,731)

Issuance of common shares

2,351

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2,351

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2,351

Share-based compensation

121

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121

121

Forfeited options

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671

(671)

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Balance as of June 30, 2023

$      248,798

$          14,617

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$            1,097

$      (243,597)

$      20,915

$               623

$          21,538

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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

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Six months ended

June 30,

2024

2023

Cash provided by operating activities:

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Net income (loss) for the period

$    (9,476)

$    (4,572)

Adjustments for non-cash items:

Fair value adjustment on sale of inventory

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25

617

Fair value adjustment on Warrants, investments and accounts receivable

20

(3,304)

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Interest recorded in respect of the convertible debt

115

Depreciation of property, plant and equipment

226

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337

Amortization of intangible assets

769

898

Depreciation of right-of-use assets

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196

352

Finance expenses, net

1,792

2,683

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Deferred tax liability, net

(107)

(220)

Share-based payment

120

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121

Loss from deconsolidation of subsidiary

2,764

Net proceeds of convertible debt allocated to conversion option

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327

6,247

1,484

Changes in working capital:

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Increase in trade receivables

(5,821)

(2,428)

Increase in other accounts receivable and advances to suppliers

(256)

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(2,572)

Decrease in inventories, net of fair value adjustments

3,424

1,484

Decrease (increase) in trade payables

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7,309

(5,078)

Changes in employee benefit liabilities, net

(47)

(106)

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Increase in other accounts payable and accrued expenses

(892)

(992)

3,717

(9,692)

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Taxes paid

(120)

(432)

Net cash provided (used) in operating activities

368

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(13,212)

Cash flows from investing activities:

Purchase of property, plant and equipment

(52)

(553)

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Deconsolidation of subsidiary

(346)

Net cash used in investing activities

$       (398)

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$        (553)

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

 

 

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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Canadian Dollars in thousands

Six months ended

June 30,

2024

2023

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Cash flow from financing activities:

   Proceeds from issuance of share capital, net of issuance costs

$         –

$         1,688

   Proceeds from issuance of warrants

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6,585

   Repayment of lease liability

(197)

(345)

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   Interest paid – lease liability

(25)

(34)

   Repayment of bank loan and credit facilities

(2,392)

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(1,060)

   Cash paid for interest

(1,054)

(124)

   Proceeds from discounted checks

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4,311

3,967

Net cash provided by financing activities

643

10,677

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Effect of foreign exchange on cash and cash equivalents

(1,726)

1,960

Decrease in cash and cash equivalents

(1,113)

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(1,128)

Cash and cash equivalents at beginning of the period

1,813

2,449

Cash and cash equivalents at end of the period

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$         700

$     1,321

Supplemental disclosure of non-cash activities:

Right-of-use asset recognized with corresponding lease liability

$           40

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$          49

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

$              –

$     1,061

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

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Cannabis

IM Cannabis Announces up to US$1,613,000 Private Placement Offering Led by Management

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THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

TORONTO and GLIL YAM, Israel, Oct. 4, 2024 /PRNewswire/ — IM Cannabis Corp. (“IM Cannabis” or the “Company“) (NASDAQ: IMCC) (CSE: IMCC), a leading medical cannabis company with operations in Israel and Germany, is pleased to announce that it intends to undertake a non-brokered private placement offering of up to US$1,613,000 through the sale of approximately 625,000 units (each, an “Unit“) at a price per Unit (the “Offering Price“) calculated on the basis of the deemed price per common shares in the capital of the Company (each, a “Share“) equal to the 10-day volume weighted average price of the Shares on Canadian Securities Exchange (the “Exchange“) ending on the trading day preceding October 3, 2024.

Each Unit will be comprised of one Share and one Share purchase warrant (each, a “Warrant“). Each Warrant shall entitle the holder thereof to acquire one additional Share (each, a “Warrant Share) at a price equal to a 50% premium to the Offering Price (the “Warrant Exercise Price“) at any time prior to 5:00 p.m. (Toronto time) on second anniversary of the closing date. The Offering, which is expected to close in one or more tranches, will be led by the Company’s management team, including Oren Shuster, Chief Executive Officer and Chairman of the board of directors (the “Board“) and Shmulik Arbel a director of the Company (together, the “Insiders“).  

All securities issued under the Offering will be subject to a hold period of four months and one day from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

The Company intends to use the proceeds from the Offering for the repayment of a loan to A.D.I. CAR ALARMS & STEREO SYSTEMS Ltd. provided to the Company’s subsidiary IMC Holdings Ltd. on October 11, 2022.

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The closing of the Offering is expected to occur by November 11, 2024.

Loan Bonus

Since October 2022, the Company has borrowed from various groups more than US$8,000,000 (together, the “Loans“). As required by the lenders, Mr. Shuster has personally guaranteed the Loans. The independent members of the Board commissioned a valuation to determine the value of Mr. Shuster’s personal guarantees, which ascribes the benefit to the Company to be approximately US$560,000 (the “Benefit“). The Company and Mr. Shuster intend to enter into a settlement agreement to settle the amount of the Benefit in Shares (a “Settlement Share“) or a pre-funded Share purchase warrant (a “Pre-Funded Warrant“), at the Offering Price. Each Pre-Funded Warrant will entitle the holder to purchase one Settlement Share for a price of $0.00001, upon receipt of shareholder approval to allow Mr. Shuster to become a control person (as defined in the policies of the Exchange). All securities issued in consideration for the Benefit will be subject to a hold period of four months and one day from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities to, or for the account or benefit of, persons in the United States or U.S. persons. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any state securities laws and may not be offered or sold to, or for the account or benefit of, persons in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Options and Warrants Cancellation

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Effective today, the Company has cancelled an aggregate of 32,305 options (“Options“) to purchase Shares, which were previously granted to Board members, officers, employees, advisors and consultants of the Company (each a “Participant“). Management reviewed the Company’s outstanding Options and determined that certain Options granted to such Participants, at exercise prices ranging from $6.60 to $600 per Share, no longer represented a realistic incentive to motivate such Participants.

Effective today, the Company has cancelled an aggregate of 142,784 Share purchase warrants (the “Subject Warrants“) to purchase Shares, which were previously granted to Mr. Shuster. Management reviewed the Company’s outstanding warrants and determined that the Subject Warrants at an exercise price of US$9.00 per Share, no longer represented a realistic incentive to motivate Mr. Shuster.

Option Grants

The Company has also approved the grant of 32,305 Options to certain eligible persons of the Company, at an exercise price of greater of: (i) the Warrant Exercise Price; and (ii) US$2.24 per Share, with an expiry date of two years from the date of issuance (the “Option Grants“). The Options Grants vest as follows: one third vest immediately, one third vests on the six-month anniversary and the final one third vests on the twelve-month anniversary. All securities issued under the Option Grants are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with the polices of the Exchange.

Related Party Transactions

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The Company expects that each of Mr. Shuster and Mr. Arbel will be related parties as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“) as Mr. Shuster and Mr. Arbel will be participating in the Offering, Mr. Shuster will be settling the Benefit. The Company expects that any such resulting related party transaction will be exempt from the formal valuation requirement and minority shareholder approval requirements of MI 61-101 based on the exemptions under sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the Units being purchased and securities issued to settle the Benefit will not exceed 25% of the Company’s market capitalization. The Company expects that the closing of the Offering and the settlement of the Benefit will occur within 21 days of this announcement and that it will not file a material change report in respect of the related party transaction at least 21 days before the closing date. The Company deems this circumstance reasonable and necessary in order to complete the Offering and settlement of the Benefit in an expeditious manner.

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 recently 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 subsidiaries, which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms, distribution center, 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 securities to be offered pursuant to the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any United States state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable United States state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

 Company Contact:

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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]

Disclaimer for Forward-Looking Information

Forward-Looking Information and Cautionary 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 Offering, including the Company’s intention to undertake the Offering, the expected terms, the anticipated closing date and closing of the Offering in one tranche, the participation of the Company’s management team, the stated intended use of proceeds; the Benefit, including the intention to enter into a settlement agreement with Mr. Shuster to settle the amount of the Benefit in Shares or Pre-Funded Warrant and the closing thereof; and the Company’s plans to issue Option Grants to certain eligible persons.

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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 carry out its stated goals, scope, and nature of operations in Germany, Israel, and other jurisdictions the Company may operate; the Company has the ability to carry out the Offering as stated; the Company has the ability to settle the Benefit as stated; and the Company has the ability to issue Option Grants to certain eligible persons as stated. 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; the Company’s inability to carry out the Offering as stated; Company’s inability to settle the Benefit as stated; and the Company’s inability to issue Option Grants to certain eligible persons 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.

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Cannabis

Bioplastic Packaging Market Size Expected to Reach USD 87.98 Bn by 2033

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Ottawa, Sept. 20, 2024 (GLOBE NEWSWIRE) — The global bioplastic packaging market size was valued at USD 17.99 billion in 2023 and is predicted to increase from USD 21.09 billion in 2024 to USD 87.98 billion by 2033, a study published by Towards Packaging a sister firm of Precedence Statistics.

Key Takeaways: Leading Factors of the Bioplastic Packaging Market

  • Use of renewable resources due to growing sustainable demand is the major factor that drives the market.
  • Eco-friendly alternatives perceive growth in North America due to growing environmental concerns.
  • Food and beverage industry is the dominating sector in the market due to the increasing consumption of packed food.
  • Limited infrastructure for bioplastic processing is an unceasing challenge for the market.

Download Statistical Data: https://www.towardspackaging.com/download-statistics/5215

Bioplastic Packaging Market: At a Glance

The bioplastic packaging market revolves around adoption renewable packaging which can be used multiple times and which is an alternative to the fossil fuel-derived plastics. Along with this, resource depletion, reduction of carbon footprint and material waste are the leading objectives of the market. The demand for sustainable packaging solution and the increasing plastic waste has increased the demand of the market.

The bio-degradable feature attributes to the reusable function of bioplastic packaging. The consumer demand for sustainable packaging has also increased the demand of the bioplastic packaging, given the reason it provides resistance and prevents denting as well. The bioplastic material tends to degrade easily which also reduces landfill waste.

Regional Insights

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Europe thrives with its vision of sustainable packaging demand

Europe is the dominating region in bioplastic packaging market. The sustainability focus of Europeans has sustained the environment and the alternative packaging solutions have increased the popularity of eco-friendly packaging. The European vision of preserving sustainability is also about turning packaging materials into recyclable or reusable material by 2030 and this has increased exploration of alternative materials, design strategies and mostly importantly waste management system.

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Europe targets to reduce unnecessary packaging by 10% in 2035 and by 15% in 2040. The demand for bioplastic as an alternative increase as Europe has strict regulations against plastic usage which aims to reduce the utilization of single use-plastic to prevent environmental hazards, especially, in marine environment and human health. In addition, European Union also aims at promoting circular economy and innovative sustainable packaging solutions with specific targets which are 77% separate collection target for plastic bottles by 2025 and will be increased to 90% by 2029. Furthermore, 25% of recycled plastic will be incorporated in PET beverage bottles from 2025 and will be increased by 30% in all plastic beverage bottles from 2030.

  • In January 2024, European retailers were relived to watch the inflation slow down as it had decreased the consumer rate by 0.1%. Despite the increasing rates and fleeting number of consumers, shopkeepers were committed to the sustainable drive. The UK consumer survey stated that 62% believed that high prices are pulling them back from being sustainable and 52% said that sustainable alternatives should have affordable prices.

North America is a steady region for the bioplastic packaging market due to its sustainable packaging demand which is also the growing consumer requirement. The impact of conventional plastic adds to the ocean litter hazard and as an alternative to reduce carbon print, sustainable solutions are being adopted. Although the American consumers worry more about convenience, price and quality given the increased purchasing rates and the tax-paying lifestyle, 40% of consumers pay more attention to the provided sustainable packaging.

The use of compostable packaging allows circular economy in the US and the companies are innovating new alternatives to support the sustainable drive and to increase their profit margin. According to U.S Environmental Protection Agency, reuse of plastic materials circulates the economy and reduces environmental impact if the material is in constant use instead of manufacturing new one. According to PEW’s research, reuse of plastics can accomplish 30% of reduction, substitution efforts by 17%, improved innovations in recycling by 20% and proper management at end-of-life can achieve a 23% reduction of plastic pollution in the environment.

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  • In November 2023, Knox County, a startup had announced the of AgroRenew LLC and had also planned to build $83 million processing facility which was designed to convert food waste into eco-friendly bioplastics. The company had expected to establish itself in early 2024 and had aimed to produce 150,000 tons of bioplastic annually.

Asia-Pacific is the fastest growing region in bioplastic packaging market with its large population as a contributor and its rapidly increasing industrial sector. The packed food consumption and the boom of e-commerce also gave preference to sustainable packaging due to strict regulations and subsidies provided to promote the compostable packaging. According to Department of Biotechnology, Ministry of Science & Technology, Government of India, the usage of single-use plastic (SUPs) was intended to stop by December 2022. The policy of Government of India (GOI) was changed to promote the development of biodegradable plastic products instead of single-use plastic.

The method used for testing substances should be able to demonstrate biodegradability as per national and international standards and should also be interim approved and receive provisional certification of biodegradability. China having a large industrial production had signed the Paris agreement to reduce carbon footprint and oil dependency as well.

Although the National Development and Reform Commission and Ministry of Ecology and Environment had plans to reduce plastic garbage, the limited infrastructure for recycling and manufacturing biodegradable plastic came as a challenge. The Chinese Government had implemented ban on plastic recycled and prohibition of non-biodegradable single-use plastic.

  • In February 2024, Balrampur Chini Mills Limited (BCML), which is a leading integrated sugar mill Kolkata-based company had announced a project with integration of ₹2,000 crore and it was going be the first industrial bioplastic plant in India. The company also stated that it had well-aligned sustainable goals to combat the climate change.  

Driver

Government regulations drive the bioplastic packaging market

The major driving factor is the environmental regulations due to increasing plastic waste production which is a problem for the eco-system. The growing concern for climate change, increasing plastic pollution and landfill waste has led to the utilization of bioplastic packaging which is reliable and bio-degradable. The government policies promote the use of biodegradable and bioplastic packaging as it reduces the use of plastic and also its generation.

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The government initiatives will increase sales, improve brand perception and also contribute to cost-savings. According to the Consumer Brands Association, FMCG manufacturers have adopted 100% recycled packaging by 2030. 

Restraint

Limited infrastructure and higher costs of materials hinder the market growth

The leading challenges which hinder the growth of bioplastic packaging market is high material costs and limited infrastructure. The manufacturing process and raw materials can affect the production of biodegradable packaging. The limited infrastructure also poses as a challenge for the manufacturing and recycling processes.

Opportunity

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Integration of Artificial Intelligence

The technological advancement offers new trends which are development of raw materials like algae, mushroom mycelium, and agricultural waste which poses as an emerging alternative. The major factor which technology can contribute is in biodegradability which will enhance the decomposing process of plastic and it also offers upcoming features like the antimicrobial properties which are significant for medical applications, use of UV resistance for outdoor use, and improved barrier properties for food packaging. Collaboration among leading industries can create more innovate and ground-breaking effective solutions for the bioplastic packaging market.

Top Companies Leading the Bioplastic Packaging Market

  • Amcor plc
  • Novamont S.p.A
  • NatureWorks, LLC
  • Coveris
  • Sealed Air
  • Alpha Packaging
  • Constantia Flexibles Group GmbH
  • Mondi plc
  • Truegreen
  • Transcontinental Inc.
  • ALPLA
  • Envigreen
  • Nature’s Bio Plastic
  • Raepak Ltd.
  • Tipa-corp Ltd.
  • Treemera GmbH
  • Element Packaging Ltd
  • Alpagro Packaging

Recent Development

Company  Balrampur Sugar Mills Firm
Headquarters Uttar Pradesh, India
Recent Development In June 2024, the Uttar Pradesh Government had announced to build a bioplastic park in the Lakhimpur Kheri district which aimed at increasing local economy. The bioplastic park was designed to promotes the usage of bioplastic plastics.
Company Praj Industries
Headquarters Maharashtra
Recent Development In February 2024, Praj Industries had announced that its pilot plant for polylactic acid (PLA) will be completed by April 2024. The company will develop renewable chemicals which is a part of R&D push. The Union Budget had also contemplated a policy for bio-manufacturing and bio foundry.

Segmental Insights

By Type

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The flexible segment is the dominating segment in the bioplastic packaging market. It is dominating due to its properties which are conserving resources and contributing to the sustainability. The flexible segment provides convenience, strong protection and reduces wastage of food and can also resist denting and breakage. Apart from this, it also increases shelf life of the products and the packaging is in demand due to its features like multi-layer construction and eco-friendly packaging solution. Lightness, safety and resistance are the factors which increase the demand of bioplastic packaging.

The rigid segment is the fastest growing segment in the bioplastic packaging market. It will dominate the market due to its properties which are providing protection, resistance and preserving product quality. The rigid segment offers a durable and reliable packaging which makes it preferred among the consumers. Customization and exceptional product protection are the essential features of the rigid segment.

By Application Type

The food and beverage segment are the dominating segment in the bioplastic packaging market. The segment dominates due extended shelf life provided to the food products and long-lasting convenience and visibility. The bioplastic packaging depends upon the type of packaging it provides which provides string barrier against external elements like oxygen, moisture and prevents food spoilage as well. Th global consumption of containers like boxes, bags, jars and pouches has increased the bioplastic packaging demand in food sector.

The consumer and goods segment are the fastest growing segment in the bioplastic films packaging market. The segment dominates due to sealed packaging and robust protection by bioplastic packaging.

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More Insights of Towards Packaging

  • The global end-of-line packaging market size is estimated to reach USD 9.50 billion by 2033, up from USD 6.14 billion in 2023, at a compound annual growth rate (CAGR) of 4.60% from 2024 to 2033.
  • The global surgical instruments packaging market size reached US$ 24.8 billion in 2023 and is projected to hit around US$ 49.1 billion by 2034, expanding at a CAGR of 6.55% during the forecast period from 2024 to 2033.
  • The global cannabis packaging market size reached USD 2.32 billion in 2023 and is projected to hit around USD 22.10 billion by 2034, expanding at a CAGR of 22.74% during the forecast period from 2024 to 2034.
  • The global clinical trial packaging market size reached USD 2.95 billion in 2023 and is projected to hit around USD 9.12 billion by 2034, expanding at a CAGR of 10.80% during the forecast period from 2024 to 2033.
  • The global panel level packaging market size is estimated to reach USD 11.13 billion by 2033, up from USD 0.43 billion in 2023, at a compound annual growth rate (CAGR) of 38.60% from 2024 to 2033.
  • The global hazardous goods packaging market size reached US$ 11.50 billion in 2023 and is projected to hit around US$ 21.38 billion by 2034, expanding at a CAGR of 5.80% during the forecast period from 2024 to 2033.
  • The global rigid tray market size reached US$ 11.65 billion in 2024 and is projected to hit around US$ 14.72 billion by 2034, expanding at a CAGR of 2.37% during the forecast period from 2024 to 2034.
  • The global cider packaging market size is estimated to reach USD 7.05 billion by 2033, up from USD 4.08 billion in 2023, at a compound annual growth rate (CAGR) of 5.77% from 2024 to 2033.
  • The global boxboard packaging market size is estimated to reach USD 117.61 billion by 2033, up from USD 65.73 billion in 2023, at a compound annual growth rate (CAGR) of 6.12% from 2024 to 2033.
  • The global corrugated plastic tray market size reached US$ 665.47 million in 2023 and is projected to hit around US$ 1190.73 million by 2034, expanding at a CAGR of 5.14% during the forecast period from 2024 to 2034.

Bioplastic Packaging Market Segment

By Material

  • Biodegradable
    • Polylactic Acid
    • Starch Blends
    • Polybutylene Adipate Terephthalate (PBAT)
    • Polybutylene Succinate (PBS)
    • Others
  • Non-biodegradable
    • Bio Polyethylene
    • Bio Polyethylene Terephthalate
    • Bio Polyamide
    • Others

By Type

  • Flexible
  • Rigid

By Application 

  • Food & Beverages
  • Consumer Goods
  • Cosmetic & Personal Care
  • Pharmaceuticals
  • Others

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA)
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait

View Bioplastic Packaging Market Full TOC: https://www.towardspackaging.com/table-of-content/bioplastic-packaging-market-sizing

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Towards Packaging is a leading global consulting firm specializing in providing comprehensive and strategic research solutions. With a highly skilled and experienced consultant team, we offer a wide range of services designed to empower businesses with valuable insights and actionable recommendations. We stay abreast of the latest industry trends and emerging markets to provide our clients with an unrivalled understanding of their respective sectors. We adhere to rigorous research methodologies, combining primary and secondary research to ensure accuracy and reliability. Our data-driven approach and advanced analytics enable us to unearth actionable insights and make informed recommendations. We are committed to delivering excellence in all our endeavours. Our dedication to quality and continuous improvement has earned us the trust and loyalty of clients worldwide.

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Cannabis

New York Legal Cannabis Market Trends Analysis Report 2024-2030: Approval of the U.S. Farm Bill Expected to Boost Growth

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Dublin, Sept. 20, 2024 (GLOBE NEWSWIRE) — The “New York Legal Cannabis Market Size, Share & Trends Analysis Report By Source (Hemp, Marijuana), By Derivatives (CBD, THC, Others), By Cultivation (Indoor Cultivation, Greenhouse Cultivation), By End-use, And Segment Forecasts, 2024 – 2030” report has been added to ResearchAndMarkets.com’s offering.

The New York legal cannabis market size is expected to reach USD 3.22 billion by 2030, registering a CAGR of 15.3% from 2024 to 2030

Factors such as the legalization of medicinal cannabis, rising consumer disposable income, increasing consumer awareness of the health benefits of cannabis, growing demand for cannabis from the pharmaceutical industry, and the approval of the U.S. Farm Bill are expected to boost market growth.

Cannabis is utilized for managing a range of ailments, including mental health issues, cancer, nausea, and pain, and for adult use purposes. The increasing prevalence of cancer is expected to significantly contribute to the increasing acceptance of medical marijuana over the forecast period. For instance, according to data published by the Government of New York, annually 116,000 New Yorkers are diagnosed with cancer.

The growing awareness among people regarding the therapeutic benefits of cannabis and the rise in cannabis certification educational and training programs fuel market growth. For instance, the travelling training program is a part of the New York State Cannabis Workforce Initiative. It’s a collaboration between Cornell University’s School of Industrial & Labor Relations and the non-profit Workforce Development Institute, which is partly funded by the state. This program has successfully educated hundreds of individuals in the fundamental aspects of the cannabis industry.

Moreover, the increase in research activities related to cannabis is driving the market growth. In August 2023, regulations for Cannabis Research Licenses were implemented. These regulations allow licensed researchers to cultivate, process, purchase, and possess cannabis for the purpose of testing its composition levels and chemical potency, studying the safety and effectiveness of cannabis as a medical treatment, conducting agricultural or genomic research, as well as carrying out clinical studies of cannabis-derived drug products.

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New York Legal Cannabis Market Report Highlights

  • Based on source, the marijuana segment accounted for the largest revenue share in 2023, owing to the growing research studies on cannabis for its medical use
  • Based on derivatives, the CBD segment dominated the market with the largest revenue share in 2023, owing to the growing adoption of CBD-infused medication, food, and cosmetics
  • Based on cultivation, the indoor cultivation segment accounted for the largest revenue share in 2023, owing to favorable government regulations and a rise in the number of cannabis cultivators
  • Based on end-use, the recreational use segment held the largest market share in 2023 due to the rise in the number of consumers adopting cannabis consumption in the form of smoking and vaping

Companies Featured

  • Curaleaf Holdings, Inc.
  • New York Hemp Oil
  • COOKIES CREATIVE PRODUCTIONS & CONSULTING, INC.
  • ACREAGE HOLDINGS.
  • Cannabist Company Holdings Inc.
  • Cresco Labs.
  • PharmaCann Inc.
  • Vireo Health International, Inc.
  • Green Thumb Industries (GTI)

Key Attributes:

Report Attribute Details
No. of Pages 80
Forecast Period 2023 – 2030
Estimated Market Value (USD) in 2023 $1.16 Billion
Forecasted Market Value (USD) by 2030 $3.22 Billion
Compound Annual Growth Rate 15.3%
Regions Covered United States

Key Topics Covered:

Chapter 1. Methodology and Scope

Chapter 2. Executive Summary
2.1. Market Snapshot
2.2. Segment Snapshot
2.2.1. Source outlook
2.2.2. Derivatives outlook
2.2.3. Cultivation outlook
2.2.4. End Use outlook
2.3. Competitive Landscape Snapshot

Chapter 3. New York Legal Cannabis Market Variables, Trends, & Scope
3.1. Market Lineage Outlook
3.2. Market Dynamics
3.2.1. Market Driver Analysis
3.2.2. Market Restraint Analysis
3.2.3. Case Study Analysis
3.3. Business Environment Analysis
3.3.1. Industry Analysis – Porter’s
3.3.2. PESTLE Analysis
3.4. Regulatory Landscape

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Chapter 4. New York Legal Cannabis Market Segment Analysis, By Source, 2018 – 2030 (USD Million)
4.1. Definition and Scope
4.2. Source Segment Dashboard
4.3. Market Size & Forecasts and Trend Analyses, 2018 to 2030 for the following
4.4. Hemp
4.4.1. Market estimates and forecasts, 2018 to 2030 (USD Million)
4.4.2. Hemp Oil
4.4.3. Industrial Hemp
4.5. Marijuana
4.5.2. Flower
4.5.3. Oil and Tinctures

Chapter 5. New York Legal Cannabis Market Segment Analysis, By Derivatives, 2018 – 2030 (USD Million)
5.1. Definition and Scope
5.2. Derivatives Segment Dashboard
5.3. Market Size & Forecasts and Trend Analyses, 2018 to 2030 for the following
5.4. CBD
5.5. THC
5.6. Others

Chapter 6. New York Legal Cannabis Market Segment Analysis, By Cultivation, 2018 – 2030 (USD Million)
6.1. Definition and Scope
6.2. Cultivation Segment Dashboard
6.3. Market Size & Forecasts and Trend Analyses, 2018 to 2030 for the following
6.4. Indoor Cultivation
6.5. Greenhouse Cultivation
6.6. Outdoor Cultivation

Chapter 7. New York Legal Cannabis Market Segment Analysis, By End Use, 2018 – 2030 (USD Million)
7.1. Definition and Scope
7.2. End Use Segment Dashboard
7.3. Market Size & Forecasts and Trend Analyses, 2018 to 2030 for the following
7.4. Industrial Use
7.5. Medical Use
7.5.1. Market estimates and forecasts, 2018 to 2030 (USD Million)
7.5.2. Chronic Pain
7.5.3. Depression and Anxiety
7.5.4. Arthritis
7.5.5. Post Traumatic Stress Disorder (PTSD)
7.5.6. Cancer
7.5.7. Migraines
7.5.8. Epilepsy
7.5.9. Alzheimer’s
7.5.10. Multiple Sclerosis
7.5.11. Amyotrophic Lateral Sclerosis
7.5.12. Tourette’s
7.5.13. Diabetes
7.5.14. Parkinson’s
7.5.15. Glaucoma
7.5.16. Others
7.6. Recreational Use

Chapter 8. Competitive Landscape
8.1. Recent Developments & Impact Analysis, by Key Market Participants
8.2. Company Categorization
8.3. Company Market Position Analysis
8.4. Company Profiles
8.4.1. Overview
8.4.2. Financial Performance
8.4.3. Service Benchmarking
8.4.4. Strategic Initiatives

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