Wireless Telecom Group Announces First Quarter 2019 Financial Results

Published

5 years ago

May 8, 2019

Zoltan_Tundik

Reading Time: 11 minutes

Highlights for the quarter ended March 31, 2019:

Net revenues of $13,032,000, reflecting growth in two of three
segments
Gross Profit of $5,727,000, or 43.9%
Net loss of $344,000
Non-GAAP Adjusted EBITDA of $354,000
New Customer orders of $12,387,000
March 31, 2019 backlog of firm orders of $7,575,000
Decrease in S,G&A, increase in R&D to drive future growth
Company announces target revenues of $100 million by 2023,
inclusive of acquisitions

PARSIPPANY, N.J.–(BUSINESS WIRE)–Wireless Telecom Group, Inc. (NYSE American: WTT) (the “Company”)
announced today results for the 2019 first quarter ended March 31, 2019.

Tim Whelan, CEO of Wireless Telecom Group, Inc., commented, “Our Q1
financial results were as we expected exiting 2018 which was a record
year for the Company. Revenue was comparable to last year’s Q1 and
yielded margins reflecting our revenue product mix of lower software and
more hardware cards. We are pleased with continued top-line strength in
Embedded Solutions and the year over year increase in Network
Solutions.” Whelan added, “We are excited about our R&D investments and
the product initiatives we released during the first quarter across
multiple segments which included product collaboration on LTE eNodeB
software, our product launch for real-time public safety monitoring, and
our launch of noise sources for 5G test systems.”

Whelan continued, “We continue to invest for long-term growth and remain
optimistic for continued momentum throughout the remainder of 2019. We
are on track for our long-term target of $100 million in revenue,
consisting of strong organic growth and strategic acquisitions, while
improving profitability and cash flows.”

For the quarter ended March 31, 2019, the Company reported consolidated
net revenues of $13,032,000, compared to $13,264,000 for the same period
in 2018, a decrease of 1.7%. Network Solutions revenue increased 4.5% on
increased large venue projects and customized solutions and Embedded
Solutions revenue increased 6.4% on higher sales of digital signal
processing hardware. This was offset by a decrease of 19.5% in Test and
Measurement revenue on lower government shipments compared to the same
quarter last year, which are expected to increase over the coming
quarters.

The Company also reported consolidated gross profit of $5,727,000, or
43.9% of revenue, for the quarter ended March 31, 2019, compared to
$6,268,000 or 47.3% of revenue, for the same period in 2018. The decline
in gross profit margin was due to a higher mix of lower margin hardware
sales at Embedded Solutions and the impact of competitive pricing in the
Network Solutions industry which were partially offset due to a
favorable product mix in Test and Measurement.

For the quarter ended March 31, 2019, the Company reported consolidated
operating expenses of $6,125,000, compared to $5,700,000 for the same
period in 2018, an increase of $425,000. The increase was driven by our
investments in research and development in the area of 5G roadmap
development and was offset by a 3% decline of sales, marketing, general
and administrative expenses.

The net loss for the quarter ended March 31, 2019 was $344,000, compared
to net income of $374,000 for the same period in 2018.

Non-GAAP Adjusted EBITDA for the quarter ended March 31, 2019 was
$354,000, compared to $1,612,000 for the same period in 2018. The
decrease in non-GAAP Adjusted EBITDA from the prior year is attributable
to the decrease in gross profit as described above coupled with the
increased investments in research and development. The Company’s
explanation of Adjusted EBITDA and the reconciliation of Adjusted EBITDA
to net income (loss) is set out below in this press release.

The Company’s consolidated backlog of firm orders to be shipped in the
next twelve months was $7,575,000 at March 31, 2019, compared to the
March 31, 2018 backlog of $10,576,000.

Outlook

Near term, the Company expects revenues for the second quarter of 2019
to slightly increase compared to the same quarter last year and gross
margins to be comparable. The Company also maintains the expectation for
full year 2019 revenues to grow organically in the low to mid-single
digits, with full-year gross margins comparable to last year. A strict
focus on driving operational leverage is expected to generate
profitability and cash flow growth at rates higher than expected revenue
growth. The Company’s principal considerations for full-year 2019
expectations include slower than anticipated deployment of 5G
infrastructure, judicious investment in R&D and new product development
while controlling operating expenses, and uncertainty around the timing
of select, large and new customer opportunities in the funnel.

Beyond 2019, the Company expects to grow revenues organically between 10
and 12% over the next four years based on the long term trends of
network densification and 5G deployment, private LTE network expansion
and increased military spend. In addition, the Company also expects
strong organic growth to be driven by multiple internal initiatives
including the continuation of new product introductions, channel
expansion, and operational excellence. The Company’s 2023 targets also
include annual revenues of $100 million, inclusive of strategic
acquisitions, gross profit margins between 47% and 49%, and Adjusted
EBITDA margins of approximately 15%. The Company defines Adjusted EBITDA
margins as Adjusted EBITDA divided by revenue (see use of Non-GAAP
Financial Measures below).

Conference Call

As previously announced, Wireless Telecom Group Inc. will host a
conference call today at 8:30 a.m. ET in which management will discuss
first quarter results and related matters. To participate in the
conference call, dial 800-346-7359 or 973-528-0008. The conference
identification number is 762201. The call will also be webcast over the
internet at the following URL: https://www.webcaster4.com/Webcast/Page/1690/30414

A replay will be made available on the Wireless Telecom website for a
limited period of time following the conference call.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with generally
accepted accounting principles (“GAAP”). Management believes, however,
that certain non‐GAAP financial measures used in managing the Company’s
business may provide users of this financial information with additional
meaningful comparisons between current results and prior reported
results. Certain of the information set forth herein and certain of the
information presented by the Company from time to time may constitute
non‐GAAP financial measures within the meaning of Regulation G adopted
by the Securities and Exchange Commission. We have presented herein a
reconciliation of these measures to the most directly comparable GAAP
financial measure. The non‐GAAP measures presented herein may not be
comparable to similarly titled measures presented by other companies.
The foregoing measures do not serve as a substitute and should not be
construed as a substitute for GAAP performance, but provide supplemental
information concerning our performance that our investors and we find
useful.

The Company defines EBITDA as its net earnings before interest, taxes,
depreciation and amortization. “Adjusted EBITDA” is EBITDA excluding our
stock compensation expense, restructuring charges, acquisition expenses,
integration expenses, the one-time non-cash inventory impairment
charges, unrealized and realized foreign exchange gains and losses, and
other non-recurring costs and includes cash received in 2018 related to
revenue that would have been recognized in 2018 but for the adoption of
ASU Topic 606. A reconciliation of net income to non-GAAP Adjusted
EBITDA is included as an attachment to this press release.

The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by
revenue. The Company does not provide a forward-looking reconciliation
of expected Adjusted EBITDA Margin as the amount and significance of
special items required to develop meaningful comparable GAAP financial
measures cannot be estimated at this time without unreasonable efforts.
These special items could be meaningful.

The Company views Adjusted EBITDA and Adjusted EBITDA margin as
important indicators of performance, consistent with the manner in which
management measures and forecasts the Company’s performance. We believe
Adjusted EBITDA and Adjusted EBITDA margin are important performance
metrics because they facilitate the analysis of our results, exclusive
of certain non‐cash items, including items which do not directly
correlate to our business operations.

The Company believes that Adjusted EBITDA and Adjusted EBITDA margin
metrics provide qualitative insight into our current performance and we
use these measures to evaluate our results. Additionally, we use
Adjusted EBITDA to measure the performance of our management team and
management’s entitlement to incentive compensation. We believe that
making this information available to investors enables them to view our
performance the way that we view our performance and thereby gain a
meaningful understanding of our core operating results, in general, and
from period to period.

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. In some
cases, such forward-looking statements may be identified by terms such
as believe, expect, seek, may, will, intend, project, anticipate, plan,
estimate, guidance or similar words. Forward-looking statements include,
among others, statements regarding expectations for revenue and gross
margins for the quarter ending June 30, 2019 and the year ending
December 31, 2019, expectations for increased government shipments in
the remaining quarters of 2019; expectations for improved profitability
and cash flow for the year ending December 31, 2019; expectations
relating to long-term growth, including long-term revenue expectations
of$100 million; long-term organic revenue growth rates, gross profit
margins and Adjusted EBITDA margins. Investors are cautioned that such
forward-looking statements are not guarantees of future performance and
involve a number of risks and uncertainties that could materially affect
actual results, including, among others, the ability of management to
successfully implement the Company’s business plan and strategy; the
loss of any significant customers of the Company; the Company’s ability
to acquire accretive businesses and successfully integrate acquired
businesses; product demand and development of competitive technologies
in the Company’s market sector; the impact of competitive products and
pricing; as well as other risks and uncertainties set forth in the
Company’s Annual Report on Form 10-K for the year ended December 31,
2018. These forward-looking statements speak only as of the date of this
release and the Company does not undertake any obligation to update or
revise any forward-looking information to reflect changes in
assumptions, the occurrence of unanticipated events, or otherwise, as
except as required by law.

About Wireless Telecom Group, Inc.

Wireless Telecom Group, Inc., comprised of Boonton Electronics,
CommAgility, Microlab and Noisecom, is a global designer and
manufacturer of advanced radio frequency and microwave components,
modules, systems and instruments. Serving the wireless,
telecommunication, satellite, military, aerospace, semiconductor and
medical industries, Wireless Telecom Group products enable innovation
across a wide range of traditional and emerging wireless technologies.
With a unique set of high-performance products including peak power
meters, signal analyzers, signal processing modules, LTE PHY and stack
software, power splitters and combiners, GPS repeaters, public safety
monitors, noise sources, and programmable noise generators, Wireless
Telecom Group supports the development, testing, and deployment of
wireless technologies around the globe. Wireless Telecom Group is
headquartered in Parsippany, New Jersey, in the New York City
metropolitan area, and maintains a global network of Sales and Service
offices for excellent product service and support. Wireless Telecom
Group’s website address is http://www.wtcom.com.


Wireless Telecom Group Inc. CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) (In thousands, except per share amounts, Unaudited)

	Three Months Ended
	March 31
	2019			2018
NET REVENUES	$	13,032		$	13,264


COST OF REVENUES		7,305			6,996


GROSS PROFIT		5,727			6,268

Operating Expenses
Research and Development		1,714			1,157
Sales and Marketing		1,937			1,910
General and Administrative		2,474			2,633
Total Operating Expenses		6,125			5,700


Operating Income/(Loss)		(398	)		568


Other Income/(Expense)		31			(46	)
Interest Expense		(115	)		(92	)

Income/(Loss) before taxes		(482	)		430


Tax Provision/(Benefit)		(138	)		56


Net Income/(Loss)	$	(344	)	$	374


Other Comprehensive Income/(Loss):
Foreign Currency Translation Adjustments		305			579
Comprehensive Income/(Loss)	$	(39	)	$	953



Earnings/(Loss) Per Share:
Basic	$	(0.02	)	$	0.02
Diluted	$	(0.02	)	$	0.02


Weighted Average Shares Outstanding:
Basic		20,973			20,644
Diluted		20,973			21,633

In periods with a net loss, the basic loss per share equals the diluted
loss per share as all common stock equivalents are excluded from the per
share calculation because they are anti-dilutive.



CONSOLIDATED BALANCE SHEET (In thousands, except number of shares and par value) Advertisement

	March 31			December 31
	2019			2018
	(Unaudited)
CURRENT ASSETS
Cash & Cash Equivalents	$	2,457		$	5,015
Accounts Receivable – net of reserves of $62 and $44, respectively		12,129			8,638
Inventories – net of reserves of $1,830 and $1,910, respectively		7,763			6,884
Prepaid Expenses and Other Current Assets		1,017			1,689

TOTAL CURRENT ASSETS		23,366			22,226


PROPERTY PLANT AND EQUIPMENT – NET		2,517			2,578


OTHER ASSETS
Goodwill		9,950			9,778
Acquired Intangible Assets, net		3,001			3,206
Deferred Income Taxes		5,751			5,592
Right Of Use Lease Asset		1,766			–
Other Assets		738			787

TOTAL OTHER ASSETS		21,206			19,363


TOTAL ASSETS	$	47,089		$	44,167


CURRENT LIABILITIES
Short Term Debt	$	4,051		$	2,016
Accounts Payable		5,215			3,252
Short Term Lease Liability		423			–
Accrued Expenses and Other Current Liabilities		2,967			6,083
Deferred Revenue		207			103

TOTAL CURRENT LIABILITIES		12,863			11,454


LONG TERM LIABILITIES
Long Term Lease Liability		1,350			–
Other Long Term Liabilities		96			115
Deferred Tax Liability		628			616
TOTAL LONG TERM LIABILITIES		2,074			731


COMMITMENTS AND CONTINGENCIES


SHAREHOLDERS’ EQUITY
Preferred Stock, $.01 par value, 2,000,000 shares authorized, none issued		–			–
Common Stock, $.01 par value, 75,000,000 shares authorized, 34,488,852 and 34,393,252
shares issued, 21,300,252 and 21,205,251 shares outstanding		345			344
Additional Paid in Capital		48,687			48,479
Retained Earnings		7,212			7,556
Treasury Stock at Cost, 13,188,601 and 13,188,601 shares, respectively		(24,509	)		(24,509	)
Accumulated Other Comprehensive Income		417			112
TOTAL SHAREHOLDERS’ EQUITY		32,152			31,982

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	47,089		$	44,167


CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands, unaudited)

	For the Three Months
	Ended March 31
	2019			2018

CASH FLOWS USED BY OPERATING ACTIVITIES
Net Income/(Loss)	$	(344	)	$	374
Adjustments to reconcile net income/(loss) to net cash used by operating activities:
Depreciation and Amortization		549			626
Amortization of Debt Issuance Fees		16			19
Share-based Compensation Expense		209			188
Deferred Rent		(6	)		5
Deferred Income Taxes		(159	)		37
Provision for Doubtful Accounts		18			(1	)
Inventory Reserves		47			19
Changes in Assets and Liabilities, Net of Acquisition:
Accounts Receivable		(3,456	)		(1,574	)
Inventories		(916	)		(524	)
Prepaid Expenses and Other Assets		792			(507	)
Accounts Payable		1,888			(255	)
Payment of Contingent Consideration		(772	)		–
Accrued Expenses and Other Liabilities		(1,235	)		635
Net Cash Used by Operating Activities		(3,369	)		(958	)

CASH FLOWS USED BY INVESTING ACTIVITIES
Capital Expenditures		(128	)		(199	)
Acquisition of Business, Net of Cash Acquired		(426	)		(811	)
Net Cash Used by Investing Activities		(554	)		(1,010	)

CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
Revolver Borrowings		9,788			10,603
Revolver Repayments		(7,715	)		(9,191	)
Term Loan Repayments		(38	)		(38	)
Payment of Contingent Consideration		(782	)		–
Proceeds from Exercise of Stock Options		–			288
Net Cash Provided by Financing Activities		1,253			1,662

Effect of Exchange Rate Changes on Cash and Cash Equivalents		112			88
NET DECREASE IN CASH AND CASH EQUIVALENTS		(2,558	)		(218	)

Cash and Cash Equivalents, at Beginning of Period		5,015			2,458

CASH AND CASH EQUIVALENTS, AT END OF PERIOD	$	2,457		$	2,240

SUPPLEMENTAL INFORMATION:
Cash Paid During the Period for Interest	$	41		$	36
Cash Paid During the Period for Income Taxes	$	26		$	9


NET REVENUE AND GROSS PROFIT BY SEGMENT (In thousands, Unaudited)

	Three months ended March 31
	Revenue				% of Revenue				Change
	2019		2018		2019		2018		Amount			Pct.
Network Solutions	$	5,758	$	5,511	44.2	%	41.5	%	$	247		4.5	%
Test and Measurement		3,030		3,763	23.3	%	28.4	%		(733	)	-19.5	%
Embedded Solutions		4,244		3,990	32.6	%	30.1	%		254		6.4	%
Total Net Revenues	$	13,032	$	13,264	100.0	%	100.0	%	$	(232	)	-1.7	%



	Three months ended March 31
	Gross Profit				Gross Profit %				Change
	2019		2018		2019		2018		Amount			Pct.
Network Solutions	$	2,389	$	2,442	41.5	%	44.3	%	$	(53	)	-2.2	%
Test and Measurement		1,569		1,845	51.8	%	49.0	%		(276	)	-15.0	%
Embedded Solutions		1,769		1,981	41.7	%	49.6	%		(212	)	-10.7	%
Total Gross Profit	$	5,727	$	6,268	43.9	%	47.3	%	$	(541	)	-8.6	%


RECONCILIATION OF NET INCOME TO NON-GAAP EBITDA AND NON-GAAP ADJUSTED EBITDA (In thousands, Unaudited)

	Three Months Ended
	March 31
	2019			2018 Advertisement

GAAP Net Income/(Loss), as reported	$	(344	)	$	374
Tax Provision/(Benefit)		(138	)		56
Depreciation and Amortization Expense		549			626
Interest Expense		115			92
Non-GAAP EBITDA		182			1,148
Stock Compensation Expense		209			188
ASC 606 Adjustment		–			188
Integration Expenses		–			48
Inventory Recovery		(2	)		(8	)
FX (Gain)/Loss		(35	)		48
Non-GAAP Adjusted EBITDA	$	354		$	1,612

Contacts

Mike Kandell
(973) 386-9696

John Nesbett
or Jen Belodeau
(203) 972 9200

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.

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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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