/home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 153
">
Warning: Undefined array key 0 in /home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 153
Warning: Attempt to read property "cat_name" on null in /home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 153
Materialise Reports First Quarter 2019 Results
LEUVEN, Belgium–(BUSINESS WIRE)–Materialise NV (NASDAQ:MTLS), a leading provider of additive
manufacturing and medical software and of sophisticated 3D printing
services, today announced its financial results for the first quarter
ended March 31, 2019.
Highlights – First Quarter 2019
-
Total revenue increased 7.3% to 47,115 kEUR for the first quarter of
2019 from 43,899 kEUR for the first quarter of 2018. -
Total deferred revenue from annual software sales and maintenance
contracts increased by 2,305 kEUR to 24,911 kEUR from 22,606 kEUR at
the end of 2018. -
Adjusted EBITDA increased 12% from the first quarter of 2018 to 5,829
kEUR for the first quarter of 2019. -
Net loss for the first quarter of 2019 was (304) kEUR, or (0.01) EUR
per diluted share, compared to (183) kEUR, or 0.00 EUR per diluted
share, over the same period last year.
Executive Chairman Peter Leys commented, “In the year’s opening quarter,
all three of our segments performed well. Materialise Software and
Materialise Medical, which continue to invest in both sales and
marketing and research and development, combined healthy double-digit
revenue growth rates with solid double-digit EBITDA margins. In spite of
the continuing macro-economic uncertainties, in particular in the
automotive sector, Materialise Manufacturing also realized growth, both
in terms of revenue and, more significantly, in terms of EBITDA. We
believe we are on track to meet our financial guidance for 2019.”
First Quarter 2019 Results
Total revenue for the first quarter of 2019 increased 7.3% to 47,115
kEUR compared to 43,899 kEUR for the first quarter of 2018. Adjusted
EBITDA increased to 5,829 kEUR from 5,224 kEUR. The Adjusted EBITDA
margin (Adjusted EBITDA divided by total revenue) in the first quarter
of 2019 was 12.4% compared to 11.9% in the first quarter of 2018.
Revenue from our Materialise Software segment increased 12.3% to
9,350 kEUR for the first quarter of 2019 from 8,326 kEUR for the same
quarter last year. Segment EBITDA increased to 2,961 kEUR from 2,324
kEUR while the segment EBITDA margin (the segment’s EBITDA divided by
the segment’s revenue) was 31.7% compared to 27.9% in the prior-year
period.
Revenue from our Materialise Medical segment increased 13.6% to 13,566
kEUR for the first quarter of 2019 compared to 11,946 kEUR for the same
period in 2018. Compared to the same quarter in 2018, revenues from
medical devices and services grew 15.8%, and revenues from our medical
software grew 9.4%. Segment EBITDA was 1,773 kEUR compared to 2,060 kEUR
while the segment EBITDA margin decreased to 13.1% from 17.2% in the
first quarter of 2018.
Revenue from our Materialise Manufacturing segment increased 2.3% to
24,184 kEUR for the first quarter of 2019 from 23,632 kEUR for the first
quarter of 2018. Segment EBITDA increased to 3,695 kEUR from 3,133 kEUR
while the segment EBITDA margin increased to 15.3% from 13.3% for the
same quarter in 2018.
Gross profit was 25,579 kEUR, or 54.3% of total revenue, for the first
quarter of 2019 compared to 23,955 kEUR, or 54.6% of total revenue, for
the first quarter of 2018.
Research and development (“R&D”), sales and marketing (“S&M”) and
general and administrative (“G&A”) expenses increased, in the aggregate,
8.5% to 25,361 kEUR for the first quarter of 2019 from 23,374 kEUR for
the first quarter of 2018.
Net other operating income increased by 709 kEUR to 1,258 kEUR compared
to 549 kEUR for the first quarter of 2018.
Operating result increased 30.6% to 1,476 kEUR from 1,130 kEUR for the
same period in the prior year.
Net financial result was (592) kEUR compared to (710) kEUR for the
prior-year period. The share in loss of joint venture amounted to (123)
kEUR from (103) kEUR for the same period last year.
The first quarter of 2019 contained income tax expenses of (1,065) kEUR,
compared to (500) kEUR in the first quarter of 2018. The decrease of 565
kEUR primarily reflects the change in deferred taxes from an income of
320 kEUR as at March 31, 2018 to an expense of 290 kEUR as at March 31,
2019.
As a result of the above, net loss for the first quarter of 2019 was
(304) kEUR, compared to (183) kEUR for the same period in 2018. Total
comprehensive income for the first quarter of 2019, which includes
exchange differences on translation of foreign operations, was 284 kEUR
compared to a loss of (278) kEUR for the same period in 2018.
At March 31, 2019, we had cash and equivalents of 111,052 kEUR compared
to 115,506 kEUR at December 31, 2018. Cash flow from operating
activities for the first quarter of 2019 was 4,081 kEUR compared to
6,200 kEUR in 2018. As a result of the implementation of the new
accounting standard IFRS 16, we have recognized additional lease assets
and liabilities for an amount of 4,998 kEUR at January 1, 2019. Our
Adjusted EBITDA for the first quarter of 2019 was affected positively by
this new standard from the rental payments decrease of 596 kEUR, but our
operating profit was not impacted as the depreciation expenses increased
by the same amount.
Net shareholders’ equity at March 31, 2019 was 136,377 kEUR compared to
135,989 kEUR at December 31, 2018.
2019 Guidance
As detailed in the company’s year-end fiscal 2018 earnings announcement,
in fiscal 2019, management expects to report consolidated revenue
between 196,000 – 204,000 kEUR and Adjusted EBITDA between 29,000 –
33,000 kEUR. Management also expects the amount of deferred revenue the
company generates from annual licenses and maintenance in 2019 to
increase by an amount between 2,000 – 4,000 kEUR as compared to 2018.
Reflecting the usual seasonality of the company’s business, Materialise
expects its financial performance to be weighted towards the second half
of 2019.
Non-IFRS Measures
Materialise uses EBITDA and Adjusted EBITDA as supplemental financial
measures of its financial performance. EBITDA is calculated as net
profit plus income taxes, financial expenses (less financial income),
shares of loss in a joint venture and depreciation and amortization.
Adjusted EBITDA is determined by adding non-cash stock-based
compensation expenses and acquisition-related expenses of business
combinations to EBITDA. Management believes these non-IFRS measures to
be important measures as they exclude the effects of items which
primarily reflect the impact of long-term investment and financing
decisions, rather than the performance of the company’s day-to-day
operations. As compared to net profit, these measures are limited in
that they do not reflect the periodic costs of certain capitalized
tangible and intangible assets used in generating revenues in the
company’s business, or the charges associated with impairments.
Management evaluates such items through other financial measures such as
capital expenditures and cash flow provided by operating activities. The
company believes that these measurements are useful to measure a
company’s ability to grow or as a valuation measurement. The company’s
calculation of EBITDA and Adjusted EBITDA may not be comparable to
similarly titled measures reported by other companies. EBITDA and
Adjusted EBITDA should not be considered as alternatives to net profit
or any other performance measure derived in accordance with IFRS. The
company’s presentation of EBITDA and Adjusted EBITDA should not be
construed to imply that its future results will be unaffected by unusual
or non-recurring items.
Exchange Rate
This document contains translations of certain euro amounts into U.S.
dollars at specified rates solely for the convenience of readers. Unless
otherwise noted, all translations from euros to U.S. dollars in this
document were made at a rate of EUR 1.00 to USD 1.1235, the reference
rate of the European Central Bank on March 29, 2019.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast to
discuss its financial results for the first quarter of 2019 on Tuesday,
April 30, 2019, at 8:30 a.m. ET/2:30 p.m. CET. Company participants on
the call will include Wilfried Vancraen, Founder and Chief Executive
Officer; Peter Leys, Executive Chairman; and Johan Albrecht, Chief
Financial Officer. A question-and-answer session will follow
management’s remarks.
To access the conference call, please dial 844-469-2530 (U.S.) or
765-507-2679 (international), passcode #4573367. The conference call
will also be broadcast live over the Internet with an accompanying slide
presentation, which can be accessed on the company’s website at http://investors.materialise.com.
A webcast of the conference call will be archived on the company’s
website for one year.
About Materialise
Materialise incorporates more than 25 years of 3D printing experience
into a range of software solutions and 3D printing services, which form
the backbone of the 3D printing industry. Materialise’s open and
flexible solutions enable players in a wide variety of industries,
including healthcare, automotive, aerospace, art and design, and
consumer goods, to build innovative 3D printing applications that aim to
make the world a better and healthier place. Headquartered in Belgium,
with branches worldwide, Materialise combines one of the largest groups
of software developers in the industry with one of the largest 3D
printing facilities in the world. For additional information, please
visit: www.materialise.com.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
regarding, among other things, our intentions, beliefs, assumptions,
projections, outlook, analyses or current expectations, plans,
objectives, strategies and prospects, both financial and business,
including statements concerning, among other things, current estimates
of fiscal 2019 revenues, deferred revenue from annual licenses and
maintenance and Adjusted EBITDA, results of operations, cash needs,
capital expenditures, expenses, financial condition, liquidity,
prospects, growth and strategies (including our strategic priorities for
2019), and the trends and competition that may affect the markets,
industry or us. Such statements are subject to known and unknown
uncertainties and risks. When used in this press release, the words
“estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,”
“believe,” “forecast,” “will,” “may,” “could,” “might,” “aim,” “should,”
and variations of such words or similar expressions are intended to
identify forward-looking statements. These forward-looking statements
are based upon the expectations of management under current assumptions
at the time of this press release. These expectations, beliefs and
projections are expressed in good faith and the company believes there
is a reasonable basis for them. However, the company cannot offer any
assurance that our expectations, beliefs and projections will actually
be achieved. By their nature, forward-looking statements involve risks
and uncertainties because they relate to events, competitive dynamics
and industry change, and depend on economic circumstances that may or
may not occur in the future or may occur on longer or shorter timelines
than anticipated. We caution you that forward-looking statements are not
guarantees of future performance and involve known and unknown risks,
uncertainties and other factors that are in some cases beyond our
control. All of the forward-looking statements are subject to risks and
uncertainties that may cause the company’s actual results to differ
materially from our expectations, including risk factors described in
the company’s annual report on Form 20-F filed with the U.S. Securities
and Exchange Commission. There are a number of risks and uncertainties
that could cause the company’s actual results to differ materially from
the forward-looking statements contained in this press release.
The company is providing this information as of the date of this press
release and does not undertake any obligation to update any
forward-looking statements contained in this press release as a result
of new information, future events or otherwise, unless it has
obligations under the federal securities laws to update and disclose
material developments related to previously disclosed information.
Consolidated income statements (Unaudited) |
|||||||||||||||||||||||||
For the three months ended |
For the three months ended |
||||||||||||||||||||||||
In 000 | 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
U.S.$ | € | € | € | € | |||||||||||||||||||||
Revenue | 52,934 | 47,115 | 43,899 | 47,115 | 43,899 | ||||||||||||||||||||
Cost of sales | (24,195 | ) | (21,536 | ) | (19,944 | ) | (21,536 | ) | (19,944 | ) | |||||||||||||||
Gross profit | 28,739 | 25,579 | 23,955 | 25,579 | 23,955 | ||||||||||||||||||||
Gross profit as % of revenue | 54,3 | % | 54,3 | % | 54.6 | % | 54,3 | % | 54.6 | % | |||||||||||||||
Research and development expenses | (6,388 | ) | (5,686 | ) | (5,615 | ) | (5,686 | ) | (5,615 | ) | |||||||||||||||
Sales and marketing expenses | (13,571 | ) | (12,079 | ) | (10,599 | ) | (12,079 | ) | (10,599 | ) | |||||||||||||||
General and administrative expenses | (8,534 | ) | (7,596 | ) | (7,160 | ) | (7,596 | ) | (7,160 | ) | |||||||||||||||
Net other operating income (expenses) | 1,412 | 1,258 | 549 | 1,258 | 549 | ||||||||||||||||||||
Operating (loss) profit | 1,658 | 1,476 | 1,130 | 1,476 | 1,130 | ||||||||||||||||||||
Financial expenses | (1,344 | ) | (1,196 | ) | (1,550 | ) | (1,196 | ) | (1,550 | ) | |||||||||||||||
Financial income | 679 | 604 | 840 | 604 | 840 | ||||||||||||||||||||
Share in loss of joint venture | (139 | ) | (123 | ) | (103 | ) | (123 | ) | (103 | ) | |||||||||||||||
(Loss) profit before taxes | 854 | 761 | 317 | 761 | 317 | ||||||||||||||||||||
Income taxes | (1,196 | ) | (1,065 | ) | (500 | ) | (1,065 | ) | (500 | ) | |||||||||||||||
Net (loss) profit for the period | (342 | ) | (304 | ) | (183 | ) | (304 | ) | (183 | ) | |||||||||||||||
Net (loss) profit attributable to: | |||||||||||||||||||||||||
The owners of the parent | (342 | ) | (304 | ) | (183 | ) | (304 | ) | (183 | ) | |||||||||||||||
Non-controlling interest | – | – | – | – | – | ||||||||||||||||||||
Earnings per share attributable to owners of the parent | |||||||||||||||||||||||||
Basic | (0.01 | ) | (0.01 | ) | 0.00 | (0.01 | ) | 0.00 | |||||||||||||||||
Diluted | (0.01 | ) | (0.01 | ) | 0.00 | (0.01 | ) | 0.00 | |||||||||||||||||
Weighted average basic shares outstanding | 52,891 | 52,891 | 47,428 | 52,891 | 47,428 | ||||||||||||||||||||
Weighted average diluted shares outstanding | 52,891 | 52,891 | 47,428 | 52,891 | 47,428 | ||||||||||||||||||||
Consolidated statements of comprehensive income (Unaudited) |
|||||||||||||||||||||||||
For the three months ended |
For the three months ended |
||||||||||||||||||||||||
In 000 | 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
U.S.$ | € | € | € | € | |||||||||||||||||||||
Net profit (loss) for the period | (342 | ) | (304 | ) | (183 | ) | (304 | ) | (183 | ) | |||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||
Exchange difference on translation of foreign operations | 661 | 588 | (95 | ) | 588 | (95 | ) | ||||||||||||||||||
Other comprehensive income (loss), net of taxes | 661 | 588 | (95 | ) | 588 | (95 | ) | ||||||||||||||||||
Total comprehensive income (loss) for the year, net of taxes | 319 | 284 | (278 | ) | 284 | (278 | ) | ||||||||||||||||||
Total comprehensive income (loss) attributable to: | |||||||||||||||||||||||||
The owners of the parent | 319 | 284 | (278 | ) | 284 | (278 | ) | ||||||||||||||||||
Non-controlling interest | – | – | – | – | – | ||||||||||||||||||||
Consolidated statement of financial position (Unaudited) |
|||||||||
As of |
As of |
||||||||
In 000 |
2019 |
2018 |
|||||||
€ | € | ||||||||
Assets | |||||||||
Non-current assets | |||||||||
Goodwill | 17,680 | 17,491 | |||||||
Intangible assets | 26,189 | 26,326 | |||||||
Property, plant & equipment | 97,120 | 92,537 | |||||||
Investments in joint ventures | |||||||||
Deferred tax assets | 257 | 315 | |||||||
Other non-current assets | 9,388 | 7,237 | |||||||
Total non-current assets | 150,634 | 143,906 | |||||||
Current assets | |||||||||
Inventories | 11,203 | 9,986 | |||||||
Trade receivables | 39,397 | 36,891 | |||||||
Other current assets | 7,172 | 6,936 | |||||||
Cash and cash equivalents | 111,052 | 115,506 | |||||||
Total current assets | 168,824 | 169,319 | |||||||
Total assets | 319,458 | 313,225 | |||||||
As of |
As of |
||||||||
In 000 | 2019 | 2018 | |||||||
€ | € | ||||||||
Equity and liabilities | |||||||||
Equity | |||||||||
Share capital | 3,050 | 3,050 | |||||||
Share premium | 136,741 | 136,637 | |||||||
Consolidated reserves | (2,152 | ) | (1,848 | ) | |||||
Other comprehensive income | (1,262 | ) | (1,850 | ) | |||||
Equity attributable to the owners of the parent |
136,377 |
135,989 | |||||||
Non-controlling interest | – | – | |||||||
Total equity | 136,377 | 135,989 | |||||||
Non-current liabilities | |||||||||
Loans & borrowings | 93,638 | 92,440 | |||||||
Deferred tax liabilities | 6,484 | 6,226 | |||||||
Deferred income | 4,813 | 4,587 | |||||||
Other non-current liabilities | 585 | 868 | |||||||
Total non-current liabilities | 105,520 | 104,121 | |||||||
Current liabilities | |||||||||
Loans & borrowings | 15,517 | 13,598 | |||||||
Trade payables | 17,128 | 18,667 | |||||||
Tax payables | 2,730 | 2,313 | |||||||
Deferred income | 26,476 | 23,195 | |||||||
Other current liabilities | 15,710 | 15,342 | |||||||
Total current liabilities | 77,561 | 73,115 | |||||||
Total equity and liabilities | 319,458 | 313,225 | |||||||
Consolidated statement of cash flows (Unaudited) |
||||||
For the three months ended |
||||||
in 000 | 2019 | 2018 | ||||
€ | € | |||||
Operating activities | ||||||
Net (loss) profit for the period | (304 | ) | (183 | ) | ||
Non-cash and operational adjustments | ||||||
Depreciation of property, plant & equipment | 3,429 | 2,700 | ||||
Amortization of intangible assets | 1,101 | 1,305 | ||||
Share-based payment expense | (177 | ) | 89 | |||
Loss (gain) on disposal of property, plant & equipment | 51 | – | ||||
Movement in provisions | 14 | (16 | ) | |||
Movement reserve for bad debt | (136 | ) | 84 | |||
Financial income | (60 | ) | (667 | ) | ||
Financial expense | 583 | 1,067 | ||||
Impact of foreign currencies | 83 | 310 | ||||
Share in loss of a joint venture (equity method) | 124 | 103 | ||||
(Deferred) income taxes | 1,065 | 501 | ||||
Other | 35 | (88 | ) | |||
Working capital adjustment & income tax paid | ||||||
Increase in trade receivables and other receivables | (2,393 | ) | (4,372 | ) | ||
Decrease (increase) in inventories | (1,200 | ) | 1,147 | |||
Increase in trade payables and other payables | 2,251 | 5,027 | ||||
Income tax paid | (385 | ) | (807 | ) | ||
Net cash flow from operating activities | 4,081 | 6,200 | ||||
For the three months ended |
||||||
in 000 | 2019 | 2018 | ||||
€ | € | |||||
Investing activities | ||||||
Purchase of property, plant & equipment | (2,657 | ) | (4,275 | ) | ||
Purchase of intangible assets | (575 | ) | (324 | ) | ||
Proceeds from the sale of property, plant & equipment & intangible assets (net) |
– | 20 | ||||
Convertible loan to third party | (2,500 | ) | – | |||
Investments in joint-ventures | – | – | ||||
Interest received | 53 | 14 | ||||
Net cash flow used in investing activities | (5,679 | ) | (4,565 | ) | ||
Financing activities | ||||||
Proceeds from loans & borrowings | 1,500 | 12,413 | ||||
Repayment of loans & borrowings | (2,543 | ) | (11,388 | ) | ||
Repayment of finance leases | (1,399 | ) | (760 | ) | ||
Capital increase | – | 207 | ||||
Interest paid | (503 | ) | (404 | ) | ||
Other financial income (expense) | (110 | ) | 5 | |||
Net cash flow from (used in) financing activities | (3,055 | ) | 73 | |||
Net increase of cash & cash equivalents | (4,653 | ) | 1,708 | |||
Cash & cash equivalents at beginning of the year | 115,506 | 43,175 | ||||
Exchange rate differences on cash & cash equivalents | 199 | (186 | ) | |||
Cash & cash equivalents at end of the year | 111,052 | 44,697 | ||||
Reconciliation of Net Profit (Loss) to EBITDA and Adjusted |
||||||||||||||||||
For the three months |
For the three months |
|||||||||||||||||
In 000 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
€ | € | € | € | |||||||||||||||
Net profit (loss) for the period | (304 | ) | (183 | ) | (304 | ) | (183 | ) | ||||||||||
Income taxes | 1,065 | 500 | 1,065 | 500 | ||||||||||||||
Financial expenses | 1,196 | 1,550 | 1,196 | 1,550 | ||||||||||||||
Financial income | (604 | ) | (840 | ) | (604 | ) | (840 | ) | ||||||||||
Share in loss of joint venture | 123 | 103 | 123 | 103 | ||||||||||||||
Depreciation and amortization | 4,530 | 4,006 | 4,530 | 4,006 | ||||||||||||||
EBITDA | 6,006 | 5,136 | 6,006 | 5,136 | ||||||||||||||
Non-cash stock-based compensation expense (1) | (177 | ) | 88 | (177 | ) | 88 | ||||||||||||
Acquisition-related expenses business combinations | – | – | – | – | ||||||||||||||
ADJUSTED EBITDA | 5,829 | 5,224 | 5,829 | 5,224 |
(1) Non-cash stock-based compensation expenses represent the cost of
equity-settled and cash-settled share-based payments to employees.
Segment P&L (Unaudited) |
||||||||||||
In 000 |
Materialise
Software |
Materialise
Medical |
Materialise
Manufact- uring |
Total
segments |
Unallocated
(1) |
Consoli-
dated |
||||||
€ | € | € | € | € | € | |||||||
For the three months ended March 31, 2019 | ||||||||||||
Revenues | 9,350 | 13,566 | 24,184 | 47,100 | 15 | 47,115 | ||||||
Segment EBITDA | 2,961 | 1,773 | 3,695 | 8,429 | (2,423) | 6,006 | ||||||
Segment EBITDA % | 31.7% | 13.1% | 15.3% | 17.9% | 12.7% | |||||||
For the three months ended March 31, 2018 | ||||||||||||
Revenues | 8,326 | 11,946 | 23,632 | 43,904 | (5) | 43,899 | ||||||
Segment EBITDA | 2,324 | 2,060 | 3,133 | 7,517 | (2,381) | 5,136 | ||||||
Segment EBITDA % | 27.9% | 17.2% | 13.3% | 17.1% | 11.7% |
(1) Unallocated Revenues consist of occasional one-off sales by our core
competencies not allocated to any of our segments. Unallocated Segment
EBITDA consists of corporate research and development, corporate
headquarter costs and other operating income (expense).
Reconciliation of Net Profit (Loss) to Segment EBITDA |
||||||||||||||||||
For the three months |
For the three months |
|||||||||||||||||
In 000 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
€ | € | € | € | |||||||||||||||
Net profit (loss) for the period | (304 | ) | (183 | ) | (304 | ) | (183 | ) | ||||||||||
Income taxes | 1,065 | 500 | 1,065 | 500 | ||||||||||||||
Financial cost | 1,196 | 1,550 | 1,196 | 1,550 | ||||||||||||||
Financial income | (604 | ) | (840 | ) | (604 | ) | (840 | ) | ||||||||||
Share in loss of joint venture | 123 | 103 | 123 | 103 | ||||||||||||||
Operating profit | 1,476 | 1,130 | 1,476 | 1,130 | ||||||||||||||
Depreciation and amortization | 4,530 | 4,006 | 4,530 | 4,006 | ||||||||||||||
Corporate research and development | 464 | 490 | 464 | 490 | ||||||||||||||
Corporate headquarter costs | 2,565 | 2,263 | 2,565 | 2,263 | ||||||||||||||
Other operating income (expense) | (606 | ) | (372 | ) | (606 | ) | (372 | ) | ||||||||||
Segment EBITDA | 8,429 | 7,517 | 8,429 | 7,517 |
Contacts
Investor Relations
Harriet Fried
LHA
212.838.3777
[email protected]
Warning: Undefined array key 0 in /home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 493
Warning: Attempt to read property "cat_ID" on null in /home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 493
Cannabis
Sannabis, Inc. (OTC: USPS) Unveils Innovative NO LICK! Terpene Spray for Cannabis Products to Enhance CBD and THC to Achieve the Entourage Effect
Cannabis
Cannabis Concentrate Market to Cross US$2.4 Billion by 2030 amid Rising Medical and Recreational Demand
transfer
IMC to transfer its Oranim Pharmacy shares back to the seller
TORONTO and GLIL YAM, Israel, April 16, 2024 /PRNewswire/ — IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) (the “Company” or “IMC“), a leading medical cannabis company with operations in Israel and Germany, is announcing that, further to the news release dated January 12, 2024, the Company has decided not to make remaining installment payments installments (i.e. NIS 5,873K including interest or 2,154K CAD) by IMC Holdings Ltd., and as such will transfer the 51% shares held by IMC Holdings Ltd back to the seller.
“With the April 1st cannabis legalization in Germany, we are focusing our resources on the German market, where we expect to see the biggest growth potential,” said Oren Shuster, CEO of IMC. “With both of our core markets, Germany and Israel, currently undergoing rapid evolution, we need to assure that we allocate our resources to the growth opportunities where we expect the best return on investment.”
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 commercial relationship with Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms, distribution centers, and logistical hubs in Israel that enable the safe delivery and quality control of IMC’s products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients. Until recently, the Company also actively operated in Canada through Trichome Financial Corp and its wholly owned subsidiaries, where it cultivated, processed, packaged, and sold premium and ultra-premium cannabis at its own facilities under the WAGNERS and Highland Grow brands for the adult-use market in Canada. The Company has exited operations in Canada and considers these operations discontinued.
Disclaimer for Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements under applicable Canadian and U.S. 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, the occurrence of growth opportunities and the likelihood of growth potential.
Forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to: the development and introduction of new products; continuing demand for medical and adult-use recreational cannabis in the markets in which the Company operates; the Company’s ability to reach patients through both e-commerce and brick and mortar retail operations; the Company’s ability to maintain and renew or obtain required licenses; the effectiveness of its products for medical cannabis patients and recreational consumers; and the Company’s ability to market its brands and services successfully to its anticipated customers and medical cannabis patients.
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: any failure of the Company to maintain “de facto” control over Focus Medical in accordance with IFRS 10; 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 effect of the reform on the Company; the Company’s ability to continue to meet the listing requirements of the Canadian Securities Exchange and the NASDAQ Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and Focus Medical (collectively, the “Group”) to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group’s obligations; the Group’s possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group’s cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt and war, conflict and civil unrest in Eastern Europe and the Middle East
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 Contacts:
Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
[email protected]
Oren Shuster, Chief Executive Officer
IM Cannabis Corp.
[email protected]
Logo – https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/imc-to-transfer-its-oranim-pharmacy-shares-back-to-the-seller-302117984.html
-
StickIt2 weeks ago
StickIt Technologies Inc. Announces Year-End 2023 Financial Results
-
Cannabis2 weeks ago
Hemp, Inc. Welcomes USDA Approval of GMO Hemp Strain – A Step Forward in Cannabis Biotechnology
-
Cannabis1 week ago
Right On Brands, Inc. Continues Rollout, Announces 13th Store Opening
-
Cannabis2 weeks ago
IM Cannabis and Flora Growth Partner to Bring Vessel Cannabis Accessories to the Israeli Market
-
Cannabis1 week ago
Avicanna Announces Completion of Topical Gel Observational Real-World Evidence Study
-
Cannabis1 week ago
Geopulse Exploration, Inc. Acquires 50% of ATC Services
-
Cannabis2 weeks ago
Tilray Brands, Inc. Reports Q3 Fiscal 2024 Financial Results
-
transfer4 days ago
IMC to transfer its Oranim Pharmacy shares back to the seller