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MicroStrategy Announces First Quarter 2019 Financial Results
TYSONS CORNER, Va.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24MSTR&src=ctag” target=”_blank”gt;$MSTRlt;/agt; lt;a href=”https://twitter.com/hashtag/MSTR?src=hash” target=”_blank”gt;#MSTRlt;/agt;–MicroStrategy®
Incorporated (Nasdaq: MSTR), a leading worldwide provider of enterprise
analytics and mobility software, today announced financial results for
the three-month period ended March 31, 2019 (the first quarter of its
2019 fiscal year).
MicroStrategy adopted Accounting Standards Update No. 2016-02, Leases
(Topic 842), and its subsequent amendments (“ASU 2016-02”),
effective January 1, 2019. Comparative prior period consolidated
financial statements have not been restated and are not directly
comparable to the current period consolidated financial statements.
First quarter 2019 revenues were $115.4 million versus $123.0 million
for the first quarter of 2018, a 6.2% decrease. Product licenses and
subscription services revenues for the first quarter of 2019 were $25.4
million versus $25.0 million for the first quarter of 2018, a 1.9%
increase. Product support revenues for the first quarter of 2019 were
$71.5 million versus $74.4 million for the first quarter of 2018, a 4.0%
decrease. Other services revenues for the first quarter of 2019 were
$18.5 million versus $23.6 million for the first quarter of 2018, a
21.7% decrease. Foreign currency effects had an unfavorable impact on
revenues for the first quarter of 2019.
Operating expenses for the first quarter of 2019 were $99.6 million
versus $97.1 million for the first quarter of 2018, a 2.6% increase.
Loss from operations for the first quarter of 2019 was $10.4 million
versus income from operations of $0.7 million for the first quarter of
2018. Net loss for the first quarter of 2019 was $7.9 million, or $0.77
per share on a diluted basis, as compared to net income of $1.7 million,
or $0.15 per share on a diluted basis, for the first quarter of 2018.
Non-GAAP loss from operations, which excludes share-based compensation
expense, was $7.4 million for the first quarter of 2019 versus non-GAAP
income from operations of $5.5 million for the first quarter of 2018.
The tables at the end of this press release include a reconciliation of
(loss) income from operations to non-GAAP (loss) income from operations
for the three months ended March 31, 2019 and 2018. An explanation of
this non-GAAP financial measure is also included under the heading
“Non-GAAP Financial Measure” below.
As of March 31, 2019, MicroStrategy had cash and cash equivalents and
short-term investments of $551.1 million, as compared to $576.1 million
as of December 31, 2018, a decrease of $25.1 million. During the first
quarter of 2019, MicroStrategy repurchased 362,148 shares of its class A
common stock for an aggregate purchase price of approximately $48.2
million. As of March 31, 2019, MicroStrategy had 8.2 million shares of
class A common stock and 2.0 million shares of class B common stock
outstanding.
MicroStrategy uses its Intelligent Enterprise platform across the
enterprise and has created an interactive dossier with quarterly
financial performance data. Anyone can access the
MSTR Financials dossier via a web browser, or by downloading the
MicroStrategy Library app on an iOS or Android device. To download the
native apps, visit MicroStrategy
Library for iPad, MicroStrategy
Library for iPhone, or MicroStrategy
Library for Android tablet and smartphone.
Conference Call
MicroStrategy will be discussing its first quarter 2019 financial
results on a conference call today beginning at approximately 5:00 p.m.
EDT. To access the conference call, dial (844) 824-7425 (domestically)
or (716) 220-9429 (internationally) and use conference ID 7634017. A
live and archived webcast will be available under the “Events” section
on MicroStrategy’s investor relations website at http://ir.microstrategy.com/events.cfm.
A replay of the conference call will be available beginning
approximately two hours after the call concludes until May 7, 2019 at
(855) 859-2056 (domestically) or (404) 537-3406 (internationally) using
the passcode 7634017.
Recent Business Highlights
-
MicroStrategy announced the general availability
of MicroStrategy 2019, the industry’s first and only enterprise
platform for Federated Analytics, Transformational Mobility, and
HyperIntelligence. MicroStrategy 2019 delivers modern analytics on an
enterprise platform that can be deployed on-premises or on multiple
private and public cloud platforms. MicroStrategy customers on
MicroStrategy 2019 platform can get started on HyperIntelligence by
downloading the MicroStrategy HyperIntelligence extension at the Chrome
Web Store. Customers can provision MicroStrategy 2019 in the cloud
with the MicroStrategy for AWS and MicroStrategy for Azure
provisioning consoles. A 30-day free trial is available for MicroStrategy
2019 on AWS and Microsoft Azure. -
MicroStrategy was recognized by industry analysts in the following
published research:-
Recognized by Gartner, Inc. as the sole Challenger in the “2019
Magic Quadrant for Analytics and Business Intelligence Platforms”
(1) -
Named a Technology Innovation Leader by Dresner Advisory Services
for the second consecutive year -
Ranked the #1 Overall Value Index Leader in Embedded Analytics and
Business Intelligence by Ventana Research -
Ranked the #1 Overall Value Index Leader in Mobile Analytics and
Business Intelligence by Ventana Research
-
Recognized by Gartner, Inc. as the sole Challenger in the “2019
-
MicroStrategy held its 22nd annual user conference,
MicroStrategy World 2019, which brought together thousands of product
experts, thought leaders and MicroStrategy users for three days of
inspirational keynotes, educational workshops, and customer
presentations on how analytics can transform the way people use
information to make each organization a more Intelligent Enterprise.
Attendees also learned about MicroStrategy’s new platform, robust
partner network, and services offerings as well as how they can employ
new digital strategies to increase the adoption of analytics across
the enterprise.-
MicroStrategy announced the ability of customers to leverage
MicroStrategy 2019 on Microsoft Azure and Amazon Web Services,
which allows customers to launch fully-configured analytics,
mobility, and HyperIntelligence projects on Azure and AWS. -
MicroStrategy presented Customer Awards to American Express Global
Business Travel, The Coca-Cola Company, Hilton, Ola, and TAP Air
Portugal for their outstanding enterprise analytics and mobility
applications. -
MicroStrategy hosted its second annual Datathon at MicroStrategy
World 2019, challenging participants to create innovative
analytics, AI, big data, or mobile applications using
MicroStrategy 2019 with aggregated data from CharityBase, a free,
open source charity data portal with public information on the
activities, locations, and finances of thousands of charities
registered in England and Wales.
-
MicroStrategy announced the ability of customers to leverage
Non-GAAP Financial Measure
MicroStrategy is providing a supplemental financial measure for (loss)
income from operations that excludes the impact of share-based
compensation arrangements. This supplemental financial measure is not a
measurement of financial performance under generally accepted accounting
principles in the United States (“GAAP”) and, as a result, this
supplemental financial measure may not be comparable to similarly titled
measures of other companies. Management uses this non-GAAP financial
measure internally to help understand, manage, and evaluate business
performance and to help make operating decisions. MicroStrategy believes
that this non-GAAP financial measure is also useful to investors and
analysts in comparing its performance across reporting periods on a
consistent basis because it excludes a significant non-cash expense that
MicroStrategy believes is not reflective of its general business
performance. In addition, accounting for share-based compensation
arrangements requires significant management judgment and the resulting
expense could vary significantly in comparison to other companies.
Therefore, MicroStrategy believes the use of this non-GAAP financial
measure can also facilitate comparison of MicroStrategy’s operating
results to those of its competitors.
About MicroStrategy Incorporated
MicroStrategy (Nasdaq: MSTR) is a leading worldwide provider of
enterprise analytics and mobility software and services. Our mission is
to make every enterprise a more Intelligent Enterprise. MicroStrategy
2019 delivers modern analytics on an open, comprehensive enterprise
platform designed to drive business results with Federated Analytics,
Transformational Mobility, and HyperIntelligence. To learn more, visit MicroStrategy
online, and follow us on LinkedIn,
Twitter
and Facebook.
MicroStrategy, Intelligent Enterprise, MicroStrategy Library,
MicroStrategy 2019, HyperIntelligence, and MicroStrategy World are
either trademarks or registered trademarks of MicroStrategy Incorporated
in the United States and certain other countries. Other product and
company names mentioned herein may be the trademarks of their respective
owners.
This press release may include statements that may constitute
“forward-looking statements,” including estimates of future business
prospects or financial results and statements containing the words
“believe,” “estimate,” “project,” “expect” or similar expressions.
Forward-looking statements inherently involve risks and uncertainties
that could cause actual results of MicroStrategy Incorporated and its
subsidiaries (collectively, the “Company”) to differ materially from the
forward-looking statements. Factors that could contribute to such
differences include: the extent and timing of market acceptance of
MicroStrategy’s new offerings, including MicroStrategy 2019; the
Company’s ability to recognize revenue or deferred revenue through
delivery of products or satisfactory performance of services; continued
acceptance of the Company’s other products in the marketplace;
fluctuations in tax benefits or provisions, including as a result of
changes to U.S. federal tax laws; the timing of significant orders;
delays in or the inability of the Company to develop or ship new
products; competitive factors; general economic conditions; currency
fluctuations; and other risks detailed in the Company’s registration
statements and periodic reports filed with the Securities and Exchange
Commission. The Company undertakes no obligation to update these
forward-looking statements for revisions or changes after the date of
this release.
MSTR-F
(1) Gartner, Magic Quadrant for Analytics and Business
Intelligence Platforms, Cindi Howson, James Richardson, Rita Sallam,
Austin Kronz, 11 February 2019. Gartner does not endorse any vendor,
product or service depicted in its research publications, and does not
advise technology users to select only those vendors with the highest
ratings or other designation. Gartner research publications consist of
the opinions of Gartner’s research organization and should not be
construed as statements of fact. Gartner disclaims all warranties,
express or implied, with respect to this research, including any
warranties of merchantability or fitness for a particular purpose.
MICROSTRATEGY INCORPORATED | ||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(in thousands, except per share data) | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2019 | 2018 | |||||||||
(unaudited) | (unaudited) | |||||||||
Revenues | ||||||||||
Product licenses | $ | 18,291 | $ | 17,301 | ||||||
Subscription services | 7,144 | 7,662 | ||||||||
Total product licenses and subscription services | 25,435 | 24,963 | ||||||||
Product support | 71,450 | 74,415 | ||||||||
Other services | 18,481 | 23,589 | ||||||||
Total revenues | 115,366 | 122,967 | ||||||||
Cost of revenues | ||||||||||
Product licenses | 519 | 2,211 | ||||||||
Subscription services | 3,598 | 3,249 | ||||||||
Total product licenses and subscription services | 4,117 | 5,460 | ||||||||
Product support | 7,067 | 4,796 | ||||||||
Other services | 14,989 | 14,929 | ||||||||
Total cost of revenues | 26,173 | 25,185 | ||||||||
Gross profit | 89,193 | 97,782 | ||||||||
Operating expenses | ||||||||||
Sales and marketing | 48,760 | 51,335 | ||||||||
Research and development | 28,215 | 23,560 | ||||||||
General and administrative | 22,604 | 22,172 | ||||||||
Total operating expenses | 99,579 | 97,067 | ||||||||
(Loss) income from operations | (10,386 | ) | 715 | |||||||
Interest income, net | 2,566 | 2,034 | ||||||||
Other expense, net | (596 | ) | (1,594 | ) | ||||||
(Loss) income before income taxes | (8,416 | ) | 1,155 | |||||||
Benefit from income taxes | (510 | ) | (518 | ) | ||||||
Net (loss) income | $ | (7,906 | ) | $ | 1,673 | |||||
Basic (loss) earnings per share (1): | $ | (0.77 | ) | $ | 0.15 | |||||
Weighted average shares outstanding used in computing basic (loss) earnings per share |
10,328 | 11,447 | ||||||||
Diluted (loss) earnings per share (1): | $ | (0.77 | ) | $ | 0.15 | |||||
Weighted average shares outstanding used in computing diluted (loss) earnings per share |
10,328 | 11,488 | ||||||||
(1) |
Basic and fully diluted (loss) earnings per share for class A and class B common stock are the same. |
|
MICROSTRATEGY INCORPORATED | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(in thousands, except per share data) | ||||||||||
March 31, | December 31, | |||||||||
2019 | 2018* | |||||||||
(unaudited) | ||||||||||
Assets | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 258,743 | $ | 109,924 | ||||||
Restricted cash | 922 | 862 | ||||||||
Short-term investments | 292,314 | 466,186 | ||||||||
Accounts receivable, net | 133,922 | 171,359 | ||||||||
Prepaid expenses and other current assets | 32,511 | 30,068 | ||||||||
Total current assets | 718,412 | 778,399 | ||||||||
Property and equipment, net | 54,832 | 51,919 | ||||||||
Right-of-use assets | 87,743 |
0 |
||||||||
Deposits and other assets | 8,374 | 8,134 | ||||||||
Deferred tax assets, net | 18,983 | 17,316 | ||||||||
Total Assets | $ | 888,344 | $ | 855,768 | ||||||
Liabilities and Stockholders’ Equity | ||||||||||
Current liabilities | ||||||||||
Accounts payable, accrued expenses, and operating lease liabilities | $ | 37,227 | $ | 33,684 | ||||||
Accrued compensation and employee benefits | 36,713 | 48,045 | ||||||||
Deferred revenue and advance payments | 190,070 | 176,540 | ||||||||
Total current liabilities | 264,010 | 258,269 | ||||||||
Deferred revenue and advance payments | 4,539 | 6,469 | ||||||||
Operating lease liabilities | 106,661 | 0 | ||||||||
Other long-term liabilities | 34,793 | 61,262 | ||||||||
Deferred tax liabilities | 35 | 37 | ||||||||
Total Liabilities | 410,038 | 326,037 | ||||||||
Stockholders’ Equity | ||||||||||
Preferred stock undesignated, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding |
0 | 0 | ||||||||
Class A common stock, $0.001 par value; 330,000 shares authorized; 15,850 shares issued and 8,202 shares outstanding, and 15,837 shares issued and 8,552 shares outstanding, respectively |
16 | 16 | ||||||||
Class B convertible common stock, $0.001 par value; 165,000 shares authorized; 2,035 shares issued and outstanding, and 2,035 shares issued and outstanding, respectively |
2 | 2 | ||||||||
Additional paid-in capital | 581,429 | 576,957 | ||||||||
Treasury stock, at cost; 7,648 shares and 7,285 shares, respectively | (634,405 | ) | (586,161 | ) | ||||||
Accumulated other comprehensive loss | (9,964 | ) | (10,217 | ) | ||||||
Retained earnings | 541,228 | 549,134 | ||||||||
Total Stockholders’ Equity | 478,306 | 529,731 | ||||||||
Total Liabilities and Stockholders’ Equity | $ | 888,344 | $ | 855,768 | ||||||
* | Derived from audited financial statements. | |
MICROSTRATEGY INCORPORATED | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(in thousands) | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2019 | 2018 | |||||||||
(unaudited) | (unaudited) | |||||||||
Operating activities: | ||||||||||
Net (loss) income | $ | (7,906 | ) | $ | 1,673 | |||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
||||||||||
Depreciation and amortization | 3,664 | 3,298 | ||||||||
Bad debt expense | 827 | 165 | ||||||||
Net realized loss on short-term investments | 41 |
0 |
||||||||
Deferred taxes | (1,694 | ) | (2,662 | ) | ||||||
Share-based compensation expense | 3,017 | 4,743 | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable | 10,266 | 422 | ||||||||
Prepaid expenses and other current assets | (3,070 | ) | (3,783 | ) | ||||||
Deposits and other assets | (134 | ) | 228 | |||||||
Accounts payable and accrued expenses | (3,108 | ) | (6,016 | ) | ||||||
Accrued compensation and employee benefits | (12,195 | ) | (8,085 | ) | ||||||
Deferred revenue and advance payments | 38,502 | 19,570 | ||||||||
Operating lease liabilities | (2,074 | ) |
0 |
|||||||
Other long-term liabilities | 320 | 9,164 | ||||||||
Net cash provided by operating activities | 26,456 | 18,717 | ||||||||
Investing activities: | ||||||||||
Proceeds from redemption of short-term investments | 314,403 | 195,820 | ||||||||
Purchases of property and equipment | (6,011 | ) | (1,294 | ) | ||||||
Purchases of short-term investments | (138,099 | ) | (483,440 | ) | ||||||
Net cash provided by (used in) investing activities | 170,293 | (288,914 | ) | |||||||
Financing activities: | ||||||||||
Proceeds from sale of class A common stock under exercise of employee stock options |
1,507 |
0 |
||||||||
Purchases of treasury stock | (48,244 | ) |
0 |
|||||||
Payments on capital lease obligations and other financing arrangements prior to the adoption of ASU 2016-02 |
0 |
(7 | ) | |||||||
Net cash used in financing activities | (46,737 | ) | (7 | ) | ||||||
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash |
(1,133 | ) | 2,202 | |||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash |
148,879 | (268,002 | ) | |||||||
Cash, cash equivalents, and restricted cash, beginning of period | 110,786 | 421,182 | ||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 259,665 | $ | 153,180 | ||||||
MICROSTRATEGY INCORPORATED | |||||||||
REVENUE AND COST OF REVENUE DETAIL | |||||||||
(in thousands) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2019 | 2018 | ||||||||
(unaudited) | (unaudited) | ||||||||
Revenues | |||||||||
Product licenses and subscription services: | |||||||||
Product licenses | $ | 18,291 | $ | 17,301 | |||||
Subscription services | 7,144 | 7,662 | |||||||
Total product licenses and subscription services | 25,435 | 24,963 | |||||||
Product support | 71,450 | 74,415 | |||||||
Other services: | |||||||||
Consulting | 16,603 | 21,287 | |||||||
Education | 1,878 | 2,302 | |||||||
Total other services | 18,481 | 23,589 | |||||||
Total revenues | 115,366 | 122,967 | |||||||
Cost of revenues | |||||||||
Product licenses and subscription services: | |||||||||
Product licenses | 519 | 2,211 | |||||||
Subscription services | 3,598 | 3,249 | |||||||
Total product licenses and subscription services | 4,117 | 5,460 | |||||||
Product support | 7,067 | 4,796 | |||||||
Other services: | |||||||||
Consulting | 12,985 | 13,321 | |||||||
Education | 2,004 | 1,608 | |||||||
Total other services | 14,989 | 14,929 | |||||||
Total cost of revenues | 26,173 | 25,185 | |||||||
Gross profit | $ | 89,193 | $ | 97,782 | |||||
MICROSTRATEGY INCORPORATED | ||||||||||||
DEFERRED REVENUE DETAIL | ||||||||||||
(in thousands) | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2019 | 2018* | 2018 | ||||||||||
(unaudited) | (unaudited) | |||||||||||
Current: | ||||||||||||
Deferred product licenses revenue | $ | 555 | $ | 1,768 | $ | 3,064 | ||||||
Deferred subscription services revenue | 15,641 | 13,508 | 16,742 | |||||||||
Deferred product support revenue | 166,306 | 152,501 | 173,156 | |||||||||
Deferred other services revenue | 7,568 | 8,763 | 8,756 | |||||||||
Total current deferred revenue and advance payments | $ | 190,070 | $ | 176,540 | $ | 201,718 | ||||||
Non-current: | ||||||||||||
Deferred product licenses revenue | $ | 479 | $ | 542 | $ | 843 | ||||||
Deferred subscription services revenue | 247 | 2,384 | 385 | |||||||||
Deferred product support revenue | 3,231 | 3,091 | 3,854 | |||||||||
Deferred other services revenue | 582 | 452 | 586 | |||||||||
Total non-current deferred revenue and advance payments | $ | 4,539 | $ | 6,469 | $ | 5,668 | ||||||
Total current and non-current: | ||||||||||||
Deferred product licenses revenue | $ | 1,034 | $ | 2,310 | $ | 3,907 | ||||||
Deferred subscription services revenue | 15,888 | 15,892 | 17,127 | |||||||||
Deferred product support revenue | 169,537 | 155,592 | 177,010 | |||||||||
Deferred other services revenue | 8,150 | 9,215 | 9,342 | |||||||||
Total current and non-current deferred revenue and advance payments | $ | 194,609 | $ | 183,009 | $ | 207,386 | ||||||
* | Derived from audited financial statements. | |
MICROSTRATEGY INCORPORATED | |||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURE | |||||||||
(in thousands) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2019 | 2018 | ||||||||
(unaudited) | (unaudited) | ||||||||
Reconciliation of non-GAAP (loss) income from operations: | |||||||||
(Loss) income from operations | $ | (10,386 | ) | $ | 715 | ||||
Share-based compensation expense | 3,017 | 4,743 | |||||||
Non-GAAP (loss) income from operations | $ | (7,369 | ) | $ | 5,458 | ||||
MICROSTRATEGY INCORPORATED | |||||||||||||||
WORLDWIDE EMPLOYEE HEADCOUNT | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||
Subscription services | 54 | 56 | 55 | 54 | 57 | ||||||||||
Product support | 224 | 202 | 194 | 184 | 182 | ||||||||||
Consulting | 429 | 452 | 458 | 443 | 441 | ||||||||||
Education | 50 | 47 | 44 | 39 | 42 | ||||||||||
Sales and marketing | 675 | 707 | 699 | 687 | 667 | ||||||||||
Research and development | 733 | 716 | 688 | 651 | 604 | ||||||||||
General and administrative | 329 | 348 | 326 | 322 | 313 | ||||||||||
Total headcount | 2,494 | 2,528 | 2,464 | 2,380 | 2,306 | ||||||||||
Contacts
MicroStrategy Incorporated
Investor Relations
Claudia Cahill
[email protected]
(703)
848-8600
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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]
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