RingCentral Announces First Quarter 2019 Results

Published

5 years ago

May 6, 2019

Zoltan_Tundik

Reading Time: 13 minutes

Total Revenue up 34%

Enterprise ARR up 95%

Channel ARR surpasses $200 million

BELMONT, Calif.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24RNG&src=ctag” target=”_blank”gt;$RNGlt;/agt; lt;a href=”https://twitter.com/hashtag/RingCentral?src=hash” target=”_blank”gt;#RingCentrallt;/agt;–RingCentral,
Inc. (NYSE: RNG), a leading provider of global enterprise cloud
communications, collaboration, and contact center solutions, today
announced financial results for the first quarter ended March 31, 2019.

First Quarter Financial Highlights

Total revenue increased 34% year over year to $201 million.
Software subscriptions revenue increased 33% year over year to $183
million.
Annualized Exit Monthly Recurring Subscriptions (ARR) increased 32%
year over year to $777 million.
RingCentral Office® ARR increased 36% year over year to $694 million.
Mid-market and Enterprise ARR increased 70% year over year to $346
million.
Enterprise ARR increased 95% year over year to $200 million.
Channel ARR increased 75% year over year to $203 million.

“We are pleased with the first quarter. Enterprise delivered solid
growth, with continued contributions from channel and international,
including a 45,000 seat win with a major UK retailer,” said Vlad
Shmunis, RingCentral’s founder, chairman and CEO. “We continue to expand
our industry leading cloud communications suite, broaden our open
platform developer network, and extend our global delivery footprint. We
believe we are well-positioned to satisfy the demands of our enterprise
customers to replace their aging on-premises PBX infrastructure with a
fully-featured cloud-based unified communications solution.”

Financial Results for the First Quarter 2019

Revenue: Total revenue was $201 million for the first quarter
of 2019, up from $150 million in the first quarter of 2018,
representing 34% growth.
Operating Profit (Loss): GAAP operating loss was $7.5 million,
compared to an operating loss of $1.4 million in the same period last
year, primarily driven by higher stock-based compensation and
acquisition related expenses. Non-GAAP operating profit was $16.3
million, compared to a non-GAAP operating profit $13.0 million in the
same period last year.

Net Income (Loss) Per Share: GAAP net loss per share was
($0.08), compared to ($0.03) in the same period last year, primarily
driven by higher stock-based compensation, amortization of debt
discount and issuance costs, and acquisition related expenses.
Non-GAAP net income per diluted share was $0.17, compared to $0.16 per
diluted share in the same period last year. The first quarter of 2019
reflected a 22.5% non-GAAP tax rate. There were no material cash taxes
given our net operating loss carryforwards.
Balance Sheet: Total cash and cash equivalents at the end of
the first quarter of 2019 was $549 million, which reflects
approximately $28 million net cash payment for the acquisition of
Connect First. This compares with $566 million at the end of the
fourth quarter of 2018.

Recent Highlights

Introduced RingCentral
Persist, a new solution that enables enterprise customers to
maintain communications services in case of an internet failure at a
customer’s location. RingCentral Persist adds additional resiliency to
RingCentral’s existing high availability delivery infrastructure for
the most demanding customer environments, including the
state-of-the-art Chase Center sports and entertainment complex, the
new home of the Golden State Warriors, scheduled to open in September
2019.
Announced the expansion of RingCentral’s open platform with RingCentral
Embeddable. Developers now have the ability to easily integrate
RingCentral’s communications capabilities into any web application
with just a few lines of code to enhance custom workflows.
Announced the integration of RingCentral
Engage, our new digital customer engagement platform, with Google
Dialogflow. With this integration, RingCentral Engage digital
customers can now leverage the machine learning and AI capabilities of
Google Dialogflow. This enables them to deploy chatbot virtual agents
to manage automated digital customer interactions.
Announced that CRN
has given RingCentral a 5-Star rating in its 2019 Partner Program
Guide. This annual guide identifies the strongest and most successful
partner programs in the channel today, offered by the top technology
suppliers for IT products and services. The 5-Star rating recognizes
an elite subset of companies that offer solution providers the best
partnering elements in their channel programs.
Announced that the Oakland
A’s have named RingCentral as the team’s official business
communications partner. The business-to-business partnership will
integrate RingCentral’s technology into the A’s front office in
combination with a marketing collaboration. Additionally, announced a
multi-year strategic partnership with Detroit
Pistons to deploy RingCentral Office and Contact Center in the
Henry Ford Detroit Pistons Performance Center.

Financial Outlook

Full Year 2019 Guidance:

Raising total revenue range to $862 to $866 million, representing
annual growth of 28% to 29%. This is up from our prior range of $847
to $859 million and annual growth of 26% to 28%.
Raising software subscriptions revenue range to $786 to $790 million,
representing annual growth of 28% to 29%. This is up from our prior
range of $775 to $785 million and annual growth of 26% to 28%.
GAAP operating margin between (4.4%) and (3.7%).
Non-GAAP operating margin between 9.0% and 9.3%.
Non-GAAP tax rate for 2019 assumed to be 22.5%, compared to 0%
non-GAAP tax rate for 2018. No material cash taxes expected given net
operating loss carryforwards.
Raising non-GAAP EPS range to $0.71 to $0.75 based on 88.5 million
fully diluted shares. This is up from our prior range of $0.69 to
$0.73.
Stock-based compensation range of $101 to $104 million, amortization
of debt discount of $20 million, amortization of acquired intangibles
of $9 million, and acquisition related matters of $2.5 million.

Second Quarter 2019 Guidance:

Total revenue range of $203.5 to $205.5 million, representing annual
growth of 27% to 28%.
Software subscriptions revenue range of $185.5 to $187.5 million,
representing annual growth of 27% to 28%.
GAAP operating margin range of (6.6%) to (5.8%).
Non-GAAP operating margin range of 8.3% to 8.5%.
Non-GAAP tax rate assumed to be 22.5%, compared to 0% non-GAAP tax
rate in 2018. No material cash taxes expected given net operating loss
carryforwards.
Non-GAAP EPS range of $0.15 to $0.17 based on 88 million fully diluted
shares.
Stock-based compensation range of $27 to $28 million, amortization of
debt discount of $5 million, and amortization of acquired intangibles
of $2.3 million.

For a reconciliation of our forecasted non-GAAP operating margin, see
“Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP
Measures.” We have not reconciled our forecasted non-GAAP EPS to GAAP
EPS because we do not provide guidance on it. We do not provide guidance
on forecasted GAAP EPS because of the inherent uncertainty and
complexity involved in forecasting the intercompany remeasurement gain
(loss) and provision (benefit) from income taxes, which could be
significant reconciling items between the non-GAAP and respective GAAP
measures. The intercompany remeasurement gain (loss) is affected by the
movement in various exchange rates relative to the U.S. Dollar, which is
difficult to predict and subject to constant change. We do not provide
guidance on forecasted GAAP tax rates as we do not forecast discrete tax
items as they are difficult to predict. The provision (benefit) from
income taxes, excluding discrete items, is expected to have an
immaterial impact to our GAAP EPS. We utilized a projected long-term tax
rate in our computation of the non-GAAP income tax provision. For fiscal
2019, we have determined the projected non-GAAP tax rate to be 22.5%.
Accordingly, a reconciliation of the non-GAAP financial measure guidance
to the corresponding GAAP measure is not available without unreasonable
effort.

Conference Call Details:

What: RingCentral financial results for the first quarter of
2019 and outlook for the second quarter and full year of 2019.
When: Monday, May 6, 2019 at 2:00PM PT (5:00PM ET).
Dial-in: To access the call in the United States, please dial
(877) 705-6003, and for international callers, dial (201) 493-6725.
Callers are encouraged to dial into the call 10 to 15 minutes prior to
the start to prevent any delay in joining.
Webcast: http://ir.ringcentral.com/
(live and replay).
Replay: Following the completion of the call through 11:59 PM
ET on May 13, 2019, a telephone replay will be available by dialing
(844) 512-2921 from the United States or (412) 317-6671
internationally with recording access code 13689769.

Investor Presentation Details

An investor presentation providing additional information and analysis
can be found at http://ir.ringcentral.com/.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of global enterprise
cloud communications, collaboration, and contact center solutions. More
flexible and cost-effective than legacy on-premises systems, the
RingCentral platform empowers employees to Work as One^TM from
any location, on any device, and via any mode to better serve customers,
improving business efficiency and customer satisfaction. The company
provides unified voice, video meetings, team messaging, digital customer
engagement, and integrated contact center solutions for enterprises
globally. RingCentral’s open platform integrates with leading business
apps and enables customers to easily customize business workflows.
RingCentral is headquartered in Belmont, California, and has offices
around the world.

©2019 RingCentral, Inc. All rights reserved. RingCentral, RingCentral
Office, RingCentral Contact Center, RingCentral Persist, RingCentral
Embeddable, RingCentral Engage, Connect First, and the RingCentral logo
are trademarks of RingCentral, Inc.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but
not limited to, statements regarding our future financial results, our
GAAP and non-GAAP guidance, the expansion of our communications suite,
the broadening of our open platform developer network, the extension of
our global delivery footprint, our ability to satisfy the requirements
of enterprises, and our market opportunity. Forward-looking statements
are subject to known and unknown risks and uncertainties and are based
on assumptions that may prove to be incorrect, which could cause actual
results to differ materially from those expected or implied by the
forward-looking statements. Among the important factors that could cause
actual results to differ materially from those in any forward-looking
statements are: our ability to grow at our expected rate of growth; our
ability to add and retain larger and enterprise customers and enter new
geographies and markets; our ability to continue to release, and gain
customer acceptance of, new and improved versions of our services; our
ability to compete successfully against existing and new competitors;
our ability to enter into and maintain relationships with carriers and
other resellers; our ability to successfully and timely integrate, and
realize the benefits of any significant acquisition we may make; our
ability to manage our expenses and growth; and general market,
political, economic, and business conditions, as well as those risks and
uncertainties included under the captions “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations,” in our Form 10-K for the year ended December 31, 2018,
filed with the Securities and Exchange Commission; and in other filings
we make with the Securities and Exchange Commission from time to time.

All forward-looking statements in this press release are based on
information available to RingCentral as of the date hereof, and we
undertake no obligation to update these forward-looking statements, to
review or confirm analysts’ expectations, or to provide interim reports
or updates on the progress of the current financial quarter.

Non-GAAP Financial Measures

Our reported financial results and financial outlook include certain
Non-GAAP financial measures, including Non-GAAP software subscriptions
gross margin, Non-GAAP other gross margin, Non-GAAP operating margin,
Non-GAAP operating income (loss), Non-GAAP net income (loss) and
Non-GAAP net income (loss) per diluted share. Non-GAAP software
subscriptions gross margin is defined as Non-GAAP subscriptions gross
profit divided by GAAP subscriptions revenue. Non-GAAP other gross
margin is defined as Non-GAAP other gross profit divided by GAAP other
revenue. Non-GAAP operating income (loss) is defined as operating income
(loss) excluding share-based compensation, amortization of acquisition
intangibles, and acquisition related matters including transaction
costs, integration costs, restructuring costs, and acquisition-related
retention payments, as well as changes in the fair value of contingent
consideration obligations. Non-GAAP operating margin is defined as
Non-GAAP operating income (loss) divided by total GAAP revenue. Non-GAAP
net income (loss) is defined as GAAP net income (loss) excluding
share-based compensation, intercompany remeasurement gains or losses,
acquisition related matters, amortization of acquisition intangibles,
non-cash interest expense associated with amortization of debt discount
and issuance costs related to our convertible senior notes, tax benefit
from release of valuation allowance, and the related income tax effect
of these adjustments.

Non-GAAP diluted shares outstanding include the impact on shares used in
per share calculations of our outstanding capped call transactions. Our
outstanding capped call transactions are anti-dilutive in GAAP earnings
per share but are expected to mitigate the dilutive effect of our
convertible notes and therefore are included in the calculations of
non-GAAP diluted shares outstanding.

We have included Non-GAAP software subscriptions gross margin, Non-GAAP
other gross margin, Non-GAAP operating margin, Non-GAAP net income
(loss), and Non-GAAP net income (loss) per diluted share in this press
release because they are key measures used by us to understand and
evaluate our operating performance and trends, to prepare and approve
our annual budget, and to develop short and long-term operational plans.
In particular, the exclusion of certain expenses in calculating Non-GAAP
software subscriptions gross margin, Non-GAAP other gross margin,
Non-GAAP operating margin, Non-GAAP net income (loss), and Non-GAAP net
income (loss) per diluted share provide useful measure for
period-to-period comparisons of our business.

Although Non-GAAP software subscriptions gross margin, Non-GAAP other
gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), and
Non-GAAP net income (loss) per diluted share, are frequently used by
investors in their evaluations of companies, these non-GAAP financial
measures have limitations as analytical tools and should not be
considered in isolation or as a substitute for financial information
presented in accordance with GAAP. Because of these limitations, these
non-GAAP financial measures should be considered alongside other
financial performance measures.

Reconciliations of the Company’s non-GAAP financial measures to their
most directly comparable GAAP measures has been provided in the
financial statement tables included in this press release.

Other Measures

Our reported results also include our annualized exit monthly recurring
subscriptions, RingCentral Office® annualized exit monthly recurring
subscriptions, mid-market and enterprise and enterprise annualized exit
monthly recurring subscriptions, channel partner annualized exit monthly
recurring subscriptions, and net monthly subscriptions dollar retention.
We define our annualized exit monthly recurring subscriptions as our
monthly recurring subscriptions multiplied by 12. Our monthly recurring
subscriptions equal the monthly value of all customer recurring charges
contracted at the end of a given month. We believe this metric is a
leading indicator of our anticipated subscriptions revenue. We calculate
our RingCentral Office® annualized exit monthly recurring subscriptions
in the same manner as we calculate our annualized exit monthly recurring
subscriptions, except that only customer subscriptions from RingCentral
Office and RingCentral Contact Center solutions customers are included
when determining monthly recurring subscriptions for the purposes of
calculating this key business metric. We calculate mid-market and
enterprise annualized exit monthly recurring subscriptions in the same
manner as we calculate our annualized exit monthly recurring
subscriptions, except that only customer subscriptions from customers
generating $25,000 or more in annual recurring revenue are included. We
calculate enterprise annualized exit monthly recurring subscriptions in
the same manner as we calculate our annualized exit monthly recurring
subscriptions, except that only customer subscriptions from customers
generating $100,000 or more in annual recurring revenue are included. We
calculate channel annualized exit monthly recurring subscriptions in the
same manner as we calculate our annualized exit monthly revenue
subscriptions, except that only customer subscriptions generated from
channel partners are included. We define Dollar Net Change as the
quotient of (i) the difference of our Monthly Recurring Subscriptions at
the end of a period minus our Monthly Recurring Subscriptions at the
beginning of a period minus our Monthly Recurring Subscriptions at the
end of the period from new customers we added during the period, (ii)
all divided by the number of months in the period. We define our Average
Monthly Recurring Subscriptions as the average of the Monthly Recurring
Subscriptions at the beginning and end of the measurement period.

TABLE 1 RINGCENTRAL, INC. Advertisement CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands)

	March 31,			December 31,
	2019			2018
Assets
Current assets
Cash and cash equivalents	$	549,030		$	566,329
Accounts receivable, net		100,706			94,375
Deferred sales commission costs		24,924			23,038
Prepaid expenses and other current assets		29,708			23,772
Total current assets		704,368			707,514
Property and equipment, net		74,203			70,205
Operating lease right-of-use assets		31,719			—
Deferred sales commission costs, non-current		59,098			55,735
Goodwill		55,373			31,238
Acquired intangibles, net		30,634			19,480
Other assets		10,307			10,154
Total assets	$	965,702		$	894,326
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	19,366		$	10,145
Accrued liabilities		115,363			100,687
Deferred revenue		93,828			88,527
Total current liabilities		228,557			199,359
Convertible senior notes, net		371,534			366,552
Operating lease liabilities		23,693			—
Other long-term liabilities		10,694			10,806
Total liabilities		634,478			576,717
Stockholders’ equity:
Common stock		8			8
Additional paid-in capital		571,426			551,078
Accumulated other comprehensive income		1,851			2,226
Accumulated deficit		(242,061	)		(235,703	)
Total stockholders’ equity	$	331,224		$	317,609
Total liabilities and stockholders’ equity	$	965,702		$	894,326

The Company adopted new accounting standards related to leases (Topic
842) effective January 1, 2019.

TABLE 2 RINGCENTRAL, INC. Advertisement CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share data)

	Three Months Ended
	March 31,
	2019			2018
Revenues
Software subscriptions	$	182,708		$	136,960
Other		18,781			13,383
Total revenues		201,489			150,343
Cost of revenues
Software subscriptions		35,334			24,526
Other		15,501			11,148
Total cost of revenues		50,835			35,674
Gross profit		150,654			114,669
Operating expenses
Research and development		29,787			22,651
Sales and marketing		99,551			71,920
General and administrative		28,779			21,449
Total operating expenses		158,117			116,020
Loss from operations		(7,463	)		(1,351	)
Other income (expense), net
Interest expense		(5,032	)		(1,411	)
Other income, net		3,051			73
Other income (expense), net		(1,981	)		(1,338	)
Loss before income taxes		(9,444	)		(2,689	)
Provision for (benefit from) income taxes		(3,086	)		27
Net loss	$	(6,358	)	$	(2,716	)
Net loss per common share
Basic and diluted	$	(0.08	)	$	(0.03	)
Weighted-average number of shares used in computing net loss per share
Basic and diluted		81,400			78,341

TABLE 3 RINGCENTRAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Advertisement (Unaudited, in thousands)

	Three months ended
	March 31,
	2019			2018
Cash flows from operating activities
Net loss	$	(6,358	)	$	(2,716	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		7,696			5,542
Share-based compensation		19,398			13,267
Amortization of deferred sales commission costs		6,228			3,984
Amortization of debt discount and issuance costs		4,982			1,370
Foreign currency remeasurement (gain) loss		(11	)		267
Provision for bad debt		337			554
Deferred income taxes		(235	)		(6	)
Tax benefit from release of valuation allowance		(3,245	)		—
Other		1,347			206
Changes in assets and liabilities:
Accounts receivable		(5,267	)		(9,243	)
Deferred sales commission costs		(11,477	)		(7,478	)
Prepaid expenses and other current assets		(5,834	)		(2,270	)
Other assets		(83	)		337
Accounts payable		7,757			(2,816	)
Accrued liabilities		(103	)		6,079
Deferred revenue		5,301			5,120
Other liabilities		(236	)		(12	)
Net cash provided by operating activities		20,197			12,185
Cash flows from investing activities
Purchases of property and equipment		(6,862	)		(4,587	)
Capitalized internal-use software		(3,543	)		(2,759	)
Cash paid for business combination, net of cash acquired		(27,870	)		—
Cash paid for acquisition of intangible assets		—			(18,470	)
Net cash used in investing activities		(38,275	)		(25,816	)
Cash flows from financing activities
Proceeds from issuance of convertible senior notes, net of issuance costs		—			449,457
Payments for capped call transactions and costs		—			(49,910	)
Repurchase of common stock		—			(15,000	)
Proceeds from issuance of stock in connection with stock plans		2,666			3,688
Taxes paid related to net share settlement of equity awards		(1,934	)		(1,014	)
Net cash provided by financing activities		732			387,221
Effect of exchange rate changes		47			181
Net increase (decrease) in cash, cash equivalents and restricted cash		(17,299	)		373,771
Cash, cash equivalents and restricted cash
Beginning of period		566,329			181,192
End of period	$	549,030		$	554,963

TABLE 4 RINGCENTRAL, INC. RECONCILIATION OF OPERATING INCOME (LOSS) GAAP MEASURES TO NON-GAAP MEASURES Advertisement (Unaudited, in thousands)

	Three Months Ended
	March 31,
	2019			2018
Revenues
Software subscriptions	$	182,708		$	136,960
Other		18,781			13,383
Total revenues		201,489			150,343
Cost of revenues reconciliation
GAAP Software subscriptions cost of revenues		35,334			24,526
Stock-based compensation		(1,346	)		(876	)
Amortization of acquisition intangibles		(1,010	)		(151	)
Acquisition related matters		(50	)		—
Non-GAAP Software subscriptions cost of revenues		32,928			23,499

GAAP Other cost of revenues		15,501			11,148
Stock-based compensation		(295	)		(134	)
Non-GAAP Other cost of revenues		15,206			11,014
Gross profit and gross margin reconciliation
Non-GAAP Subscriptions		82.0	%		82.8	%
Non-GAAP Other		19.0	%		17.7	%
Non-GAAP Gross profit		76.1	%		77.0	%
Operating expenses reconciliation
GAAP Research and development		29,787			22,651
Stock-based compensation		(4,262	)		(3,094	)
Acquisition related matters		(347	)		—
Non-GAAP Research and development		25,178			19,557
As a % of total revenues non-GAAP		12.5	%		13.0	%

GAAP Sales and marketing		99,551			71,920
Stock-based compensation		(7,608	)		(5,041	)
Amortization of acquisition intangibles		(922	)		(916	)
Acquisition related matters		(1,642	)		—
Non-GAAP Sales and marketing		89,379			65,963
As a % of total revenues non-GAAP		44.4	%		43.9	%

GAAP General and administrative		28,779			21,449
Stock-based compensation		(5,887	)		(4,122	)
Acquisition related matters		(423	)		—
Non-GAAP General and administrative		22,469			17,327
As a % of total revenues non-GAAP		11.2	%		11.5	%
Income (loss) from operations reconciliation
GAAP loss from operations		(7,463	)		(1,351	)
Stock-based compensation		19,398			13,267
Amortization of acquisition intangibles		1,932			1,067
Acquisition related matters		2,462			—
Non-GAAP Income from operations		16,329			12,983
Non-GAAP Operating margin		8.1	%		8.6	%

Contacts

Investor Relations Contact:
Ryan Goodman, RingCentral
(650)
918-5356
[email protected]

Media Contact:
Mariana Kosturos, RingCentral
(650)
562-6545
[email protected]

Read full story here

Germany

IMC Germany Announces Outstanding Preliminary Q3, 2024 Performance with 50% Growth Over Q2

Published

1 day ago

October 2, 2024

CISION (PR Newswire)

imc-germany-announces-outstanding-preliminary-q3,-2024-performance-with-50%-growth-over-q2

TORONTO and GLIL YAM, Israel, Oct. 2, 2024 /PRNewswire/ — IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) (the “Company“, “IMCannabis“, or “IMC“), a leading medical cannabis company with operations in Israel and Germany, is pleased to announce that the preliminary sales results in Germany by its German subsidiary, Adjupharm GmbH (“IMC Germany“), for the third quarter of 2024 have significantly exceeded expectations, showing a remarkable 50% increase in revenue compared to the second quarter, where IMC Germany sold about CAD$ 3.5M. This outstanding growth demonstrates IMC Germany’s successful execution of its strategic initiatives and strong market demand for its products.

Since the partial legalization of cannabis in Germany came into effect in April 2024, the demand for cannabis products in pharmacies has increased significantly, emphasizing the importance of a robust, reliable supply chain.

“Since April 1^st, one of our key objectives was to ensure a supply chain strong enough to meet the increase in demand. This preliminary 50% growth is testament, in part, to delivering on this objective,” said Oren Shuster, CEO of IMC. “We are thrilled with our Q3 performance, which not only surpassed our own targets but also highlights the dedication and hard work of our entire team.”

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 focused its 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 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

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, statements relating to statements relating to compliance with Nasdaq’s continued listing requirements, and timing and effect thereof; the potential outcome of the Licensing Agreement and the effect of collaboration with Carmel in the Israeli market and the potential exclusive launch of the BLKMKT^TM brand this year in Germany.

The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward-looking statements due to a number of factors and risks. These include: the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the Company’s ability to continue to meet the listing requirements of the Canadian Securities Exchange and the NASDAQ Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and Focus Medical (collectively, the “Group”) to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group’s obligations; the Group’s possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group’s cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt 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.

CAUTIONARY NOTE REGARDING FUTURE ORIENTED FINANCIAL INFORMATION

This press release may contain future oriented financial information (“FOFI”) within the meaning of Canadian securities legislation, about prospective results of operations, financial position or cash flows, based on assumptions about future economic conditions and courses of action, which FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement.

The FOFI has been prepared by management to provide an outlook of the Company’s activities and results and has been prepared based on a number of assumptions including the assumptions discussed under the heading above entitled “Cautionary Note Regarding Future Oriented Financial Information” and assumptions with respect to the costs and expenditures to be incurred by the Company, capital expenditures and operating costs, taxation rates for the Company and general and administrative expenses. Management does not have, or may not have had at the relevant date, firm commitments for all of the costs, expenditures, prices or other financial assumptions which may have been used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not, or may not have been at the relevant date of the FOFI, objectively determinable.

Importantly, the FOFI contained in this press release and the documents incorporated by reference herein, are, or may be, based upon certain additional assumptions that management believes to be reasonable based on the information currently available to management, including those assumptions discussed under the heading “Disclaimer for Forward-Looking Statements” and assumptions about: (i) the future pricing for the Company’s products, (ii) the future market demand and trends within the jurisdictions in which the Company may from time to time conduct the Company’s business, and (iii) the Company continued ability to maintain its capital to fund its ongoing business development and future growth.

The FOFI or financial outlook contained in this press release do not purport to present the Company’s financial condition in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in any such document, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments as at the applicable date. However, because this information is highly subjective and subject to numerous risks including the risks discussed under the heading above entitled “Cautionary Note Regarding Future Oriented Financial Information”, FOFI or financial outlook within this in this press release should not be relied on as necessarily indicative of future results.

Company Contact:

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

Oren Shuster, CEO
IM Cannabis Corp.
[email protected]

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Gedeon

Gedeon Richter presents analysis on cannabis usage among patients with schizophrenia: a new medical solution to a severe issue might be available

Published

1 week ago

September 25, 2024

CISION (PR Newswire)

A novel psychiatric scale developed by colleagues of Gedeon Richter Plc. in collaboration with academia was also presented at the 37^th ECNP conference

BUDAPEST, Hungary, Sept. 25, 2024 /PRNewswire/ — During the 37^th Annual Meeting of the European College of Neuropsychopharmacology (ECNP), held between 21-24 September 2024, new analyses of cariprazine studies were presented by Gedeon Richter Plc. First of all, cariprazine seems to be an effective treatment option for patients with schizophrenia and comorbid cannabis use disorder, according to one of the five posters presented at the congress. Furthermore, during an industry sponsored session, a new transdiagnostic scale for quantifying and visualizing symptom severity of patients with different psychiatric conditions was also presented, that was developed by the medical team of Gedeon Richter Plc. and recognized professors.

Schizophrenia often co-occurs with cannabis use disorder however, available antipsychotic treatments frequently fail to address both disorders. In a scientific poster showcased by Gedeon Richter at ECNP in Milan, cariprazine was presented to be a potentially effective treatment option for patients with first-episode schizophrenia and comorbid cannabis use disorder according to the results of a 6-month observational study. Four other scientific posters were also presented at the congress by Gedeon Richter about the role of cariprazine in the treatment of schizophrenia such as the efficacy of cariprazine in patients who develop akathisia as a side effect or the impact of functioning on the risk of relapse in patients treated with cariprazine vs placebo. Cariprazine is a 3^rd generation antipsychotic medication with a unique receptor profile and proven efficacy in schizophrenia, including negative symptoms.

Lacking biomarkers in psychiatry calls for valid and reliable assessments of psychopathology across mental disorders that are easy to use, bridge research and clinical care, and that can capture clinician and patient perspectives. Recognizing this problem, the Gedeon Richter medical team together with experienced psychiatric professors developed a scale to handle this challenge. Using this new transdiagnostic scale called the Transdiagnostic Global Impression – Psychopathology (TGI-P) scale could help CNS professionals and psychologists to quickly assess and visualize symptoms in several psychiatric conditions. During an industry sponsored session, the details and the usability of the tool were shown to the audience.

About Richter and About Cariprazine

View original content:https://www.prnewswire.co.uk/news-releases/gedeon-richter-presents-analysis-on-cannabis-usage-among-patients-with-schizophrenia-a-new-medical-solution-to-a-severe-issue-might-be-available-302258335.html

Cannabis

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

Published

2 weeks ago

September 20, 2024

GlobeNewswire

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

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.

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

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

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.

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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