/home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 153
">
Warning: Undefined array key 0 in /home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 153

Warning: Attempt to read property "cat_name" on null in /home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 153

Tech Data Reports First Quarter Fiscal Year 2020 Results

Published

5 years ago

May 30, 2019

Reading Time: 11 minutes

CLEARWATER, Fla.–(BUSINESS WIRE)–Tech Data (NASDAQ: TECD) (the “Company”) today announced its financial
results for the first quarter ended April 30, 2019.

	First quarter ended April 30,
($ in millions, except per share amounts)	2019	2018	Y/Y Change
Net Sales	$8,406.4	$8,548.3	-2%

Gross profit	$509.4	$523.1	-3%
Gross margin	6.06%	6.12%	-6 bps

SG&A expenses (GAAP)	$405.8	$422.4	-4%
% of net sales	4.83%	4.94%	-11 bps

SG&A expenses (Non-GAAP)	$384.6	$399.1	-4%
% of net sales	4.58%	4.67%	-9 bps

Operating income (GAAP)	$97.6	$70.5	38%
Operating margin (GAAP)	1.16%	0.82%	34 bps

Operating income (Non-GAAP)	$124.8	$124.1	1%
Operating margin (Non-GAAP)	1.48%	1.45%	3 bps

Net income (GAAP)	$55.4	$33.7	64%
Net income (Non-GAAP)	$75.9	$70.8	7%

EPS – diluted (GAAP)	$1.49	$0.87	71%
EPS – diluted (Non-GAAP)	$2.04	$1.84	11%

A reconciliation of GAAP to non-GAAP financial measures is presented in
the financial tables of this press release.
This information is
also available on the Investor Relations section of Tech Data’s website
at www.techdata.com/investor.

“We are pleased to report a solid start to Tech Data’s fiscal year 20.
In Q1 we delivered double-digit earnings per share growth, generated
positive cash flow and earned an industry-leading return on invested
capital – all while making good progress on our strategy and continuing
to invest for the future. Our worldwide teams executed well in the
quarter, despite market uncertainty,” said Rich Hume, chief executive
officer. “Looking ahead, although IT market growth has slowed somewhat
from the year-ago levels, demand continues to be solid, and we remain
positive on the overall IT spending outlook.”

Regional Financial Highlights for the First Quarter Ended April 30,
2019:

	First quarter ended April 30,
($ in millions)	2019	2018	Y/Y Change
AMERICAS
Net Sales	$3,789.2	$3,618.2	5%
% of WW net sales	45%	42%

Operating income (GAAP)	$68.6	$61.3	12%
% of net sales	1.81%	1.70%	11 bps

Operating income (Non-GAAP)	$84.7	$85.9	-1%
% of net sales	2.24%	2.38%	-14 bps
EUROPE
Net Sales	$4,309.5	$4,661.7	-8%
% of WW net sales	51%	55%

Operating income (GAAP)	$36.4	$17.3	110%
% of net sales	0.85%	0.37%	48 bps

Operating income (Non-GAAP)	$45.6	$43.6	4%
% of net sales	1.06%	0.94%	12 bps
ASIA PACIFIC
Net Sales	$307.7	$268.4	15%
% of WW net sales	4%	3%

Operating income (loss) (GAAP)	$0.9	($0.6)	NM
% of net sales	0.28%	-0.21%	49 bps

Operating income (Non-GAAP)	$2.8	$1.1	161%
% of net sales	0.91%	0.40%	51 bps

Note: NM = not meaningful, WW = worldwide
Stock-based compensation
expense was $8.3 million, an increase of $0.7 million, compared to the
prior-year quarter. These expenses are excluded from the regional
operating results and presented as a separate line item in the company’s
segment reporting (see the GAAP to non-GAAP reconciliation in the
financial tables of this press release).

Net sales were $8.4 billion, a decrease of 2 percent compared to the
prior-year quarter. On a constant currency basis, net sales increased
3 percent.
- Americas: Net sales were $3.8 billion, an increase of 5 percent
  compared to the prior-year quarter. On a constant currency basis,
  net sales increased 6 percent.
- Europe: Net sales were $4.3 billion, a decrease of 8 percent
  compared to the prior-year quarter. On a constant currency basis,
  net sales increased 1 percent.
- Asia Pacific: Net sales were $0.3 billion, an increase of 15
  percent compared to the prior-year quarter. On a constant currency
  basis, net sales increased 19 percent.
Net cash generated by operations during the quarter was $63 million.
Return on invested capital for the trailing twelve months was 13
percent, compared to 4 percent in the prior year. Adjusted return on
invested capital for the trailing twelve months was 14 percent,
compared to 11 percent in the prior year.

“During Q1, we generated $63 million in cash from operations, returned
$36 million to our shareholders through share repurchases, and for the
trailing twelve-month period, earned an adjusted return on invested
capital of 14 percent. In addition, we recently improved our liquidity
profile to enhance our financial strength and flexibility – all of which
reflect our disciplined approach to optimizing our business and
commitment to creating shareholder value,” said Chuck Dannewitz,
executive vice president, chief financial officer.

Business Outlook

For the quarter ending July 31, 2019, the Company anticipates:
- Worldwide net sales to be in the range of $8.6 billion to $8.9
  billion
- EPS to be in the range of $1.53 to $1.83 and non-GAAP EPS to be in
  the range of $2.15 to $2.45
- An effective tax rate in the range of 24 percent to 26 percent
This guidance assumes an average U.S. dollar to euro exchange rate of
$1.12 to €1.00 which compares to $1.17 to €1.00 in the year-ago period.

Webcast Details

Tech Data will hold a conference call today at 9:00 a.m. (ET) to discuss
its financial results for the first quarter ended April 30, 2019. A
webcast of the call, including supplemental schedules, will be available
to all interested parties and can be obtained at www.techdata.com/investor.
The webcast will be available for replay for three months.

Non-GAAP Financial Information

The non-GAAP financial information contained in this release is included
with the intention of providing investors a more complete understanding
of the Company’s operational results and trends, but should only be used
in conjunction with results reported in accordance with Generally
Accepted Accounting Principles (“GAAP”). Certain non-GAAP measures
presented in this release or other releases, presentations and similar
documents issued by the Company include sales, income or expense items
as adjusted for the impact of changes in foreign currencies (referred to
as “constant currency”), non-GAAP operating income, non-GAAP operating
margin, non-GAAP net income, non-GAAP earnings per diluted share and
Adjusted Return on Invested Capital. Certain non-GAAP measures also
exclude acquisition-related intangible assets amortization expense,
benefits associated with legal settlements, acquisition, integration and
restructuring expenses, value-added tax assessments and related interest
expense, tax indemnifications and changes in deferred tax valuation
allowances. A detailed reconciliation of the adjustments between results
calculated using GAAP and non-GAAP in this release is contained in the
attached financial schedules. This information can also be obtained from
the Company’s Investor Relations website at www.techdata.com/investor.

Forward-Looking Statements

Certain statements in this communication may contain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements, including statements regarding
Tech Data’s plans, objectives, expectations and intentions, Tech Data’s
financial results and estimates and/or business prospects, involve a
number of risks and uncertainties and actual results could differ
materially from those projected. These forward looking statements are
based on current expectations, estimates, forecasts, and projections
about the operating environment, economies and markets in which Tech
Data operates and the beliefs and assumptions of our management. Words
such as “expects,” “anticipates,” “targets,” “goals,” “projects,”
“intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such
words, and similar expressions are intended to identify such forward
looking statements. In addition, any statements that refer to
projections of Tech Data’s future financial performance, our anticipated
growth and trends in our businesses, and other characterizations of
future events or circumstances, are forward looking statements. These
forward looking statements are only predictions and are subject to
risks, uncertainties, and assumptions. Therefore, actual results may
differ materially and adversely from those expressed in any forward
looking statements.

For additional information with respect to risks and other factors which
could occur, see Tech Data’s Annual Report on Form 10-K for the year
ended January 31, 2019, including Part I, Item 1A, “Risk Factors”
therein, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and
other securities filings with the Securities and Exchange Commission
(the “SEC”) that are available at the SEC’s website at www.sec.gov
and other securities regulators. Readers are cautioned not to place
undue reliance upon any such forward-looking statements, which speak
only as of the date made. Many of these factors are beyond Tech Data’s
control. Unless otherwise required by applicable securities laws, Tech
Data disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Tech Data undertakes no duty to update any
forward looking statements contained herein to reflect actual results or
changes in Tech Data’s expectations.

About Tech Data

Tech Data connects the world with the power of technology. Our
end-to-end portfolio of products, services and solutions, highly
specialized skills, and expertise in next-generation technologies enable
channel partners to bring to market the products and solutions the world
needs to connect, grow and advance. Tech Data is ranked No. 88 on the
Fortune 500^® and has been named one of Fortune’s “World’s
Most Admired Companies” for 10 straight years. To find out more, visit www.techdata.com or
follow us on Twitter, LinkedIn,
and Facebook.

TECH DATA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

	Three months ended April 30,
	2019		2018
Net sales	$	8,406,424	$	8,548,319
Cost of products sold		7,897,045		8,025,202
Gross profit		509,379		523,117
Operating expenses:
Selling, general and administrative expenses		405,816		422,361
Acquisition, integration, and restructuring expenses		6,221		33,225
Legal settlements and other, net		(282)		(2,965)
		411,755		452,621
Operating income		97,624		70,496
Interest expense		26,257		25,922
Other (income) expense, net		(693)		1,917
Income before income taxes		72,060		42,657
Provision for income taxes		16,660		8,958
Net income	$	55,400	$	33,699

Earnings per share:
Basic	$	1.50	$	0.88
Diluted	$	1.49	$	0.87
Weighted average common shares outstanding:
Basic		37,011		38,281
Diluted		37,247		38,561

TECH DATA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands, except par value and share amounts)
(Unaudited)

	April 30,		January 31,
	2019		2019
ASSETS

Current assets:
Cash and cash equivalents	$	797,500	$	799,123
Accounts receivable, net		5,423,370		6,241,740
Inventories		3,260,840		3,297,385
Prepaid expenses and other assets		367,858		354,601
Total current assets		9,849,568		10,692,849
Property and equipment, net		271,906		274,917
Goodwill		887,175		892,990
Intangible assets, net		924,338		950,858
Other assets, net		378,762		174,938
Total assets	$	12,311,749	$	12,986,552


LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	6,715,555	$	7,496,466
Accrued expenses and other liabilities		984,366		1,000,126
Revolving credit loans and current maturities of long-term debt, net		123,092		110,368
Total current liabilities		7,823,013		8,606,960
Long-term debt, less current maturities		1,297,943		1,300,554
Other long-term liabilities		274,887		142,315
Total liabilities	$	9,395,843	$	10,049,829

Shareholders’ equity:
Common stock, par value $0.0015; 200,000,000 shares authorized; 59,245,585	$	89	$	89
shares issued at April 30, 2019 and January 31, 2019
Additional paid-in capital		836,508		844,206
Treasury stock, at cost (22,483,529 and 22,305,464 shares at April 30, 2019
and January 31, 2019)		(1,065,657)		(1,037,872)
Retained earnings		3,141,914		3,086,514
Accumulated other comprehensive income		3,052		43,786
Total shareholders’ equity		2,915,906		2,936,723
Total liabilities and shareholders’ equity	$	12,311,749	$	12,986,552

TECH DATA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)

	Three months ended April 30,
	2019			2018
Cash flows from operating activities:
Cash received from customers	$	11,913,347		$	11,514,374
Cash paid to vendors and employees	(11,800,318		)	(12,038,399		)
Interest paid, net	(35,101		)	(33,763		)
Income taxes paid	(14,739		)	(8,830		)
Net cash provided by (used in) operating activities	63,189			(566,618		)
Cash flows from investing activities:
Expenditures for property and equipment	(7,745		)	(4,894		)
Software and software development costs	(7,534		)	(3,561		)
Other	(548		)	(267		)
Net cash used in investing activities	(15,827		)	(8,722		)
Cash flows from financing activities:
Principal payments on long-term debt	(5,224		)	(2,899		)
Cash paid for debt issuance costs	(1,028		)	—
Net borrowings (repayments) on revolving credit loans	14,227			(13,291		)
Payments for employee tax withholdings on equity awards	(8,602		)	(6,255		)
Proceeds from the reissuance of treasury stock	495			442
Repurchases of common stock	(35,681		)	—
Net cash used in financing activities	(35,813		)	(22,003		)
Effect of exchange rate changes on cash and cash equivalents	(13,172		)	(12,708		)
Net decrease in cash and cash equivalents	(1,623		)	(610,051		)
Cash and cash equivalents at beginning of year	799,123			955,628
Cash and cash equivalents at end of period	$	797,500		$	345,577
Reconciliation of net income to net cash provided by operating activities:
Net income	$	55,400		$	33,699
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	37,257			40,481
Provision for losses on accounts receivable	1,765			924
Stock-based compensation expense	8,305			7,587
Accretion of debt discount and debt issuance costs	378			378
Changes in operating assets and liabilities:
Accounts receivable	751,836			670,528
Inventories	2,450			(7,387		)
Prepaid expenses and other assets	2,245			(30,344		)
Accounts payable	(706,381		)	(1,132,019		)
Accrued expenses and other liabilities	(90,066		)	(150,465		)
Total adjustments	7,789			(600,317		)
Net cash provided by (used in) operating activities	$	63,189		$	(566,618	)

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(In thousands)

Three months ended April 30, 2019

Americas ⁽¹⁾

Europe ⁽¹⁾

Asia Pacific ⁽¹⁾

Stock
Compensation
Expense

Consolidated

Net Sales

$ 3,789,198

$ 4,309,500

$ 307,726

$ 8,406,424

Operating income (GAAP) ⁽¹⁾

$ 68,633

$ 36,420

$ 876

$ (8,305)

$ 97,624

Acquisition, integration and restructuring expenses

2,911

3,024

286

–

6,221

Legal settlements and other, net

(282)

–

(282)

Tax indemnifications

–

320

Acquisition-related intangible assets amortization expense

13,440

6,115

1,324

20,879

Total non-GAAP operating income adjustments

$ 16,069

$ 9,139

$ 1,930

$ –

$ 27,138

Operating income (non-GAAP)

$ 84,702

$ 45,559

$ 2,806

$ (8,305)

$ 124,762

Operating margin (GAAP)

1.81%

0.85%

0.28%

1.16%

Operating margin (non-GAAP)

2.24%

1.06%

0.91%

1.48%

⁽¹⁾GAAP operating income does not include stock
compensation expense at the regional level.

Three months ended April 30, 2018

Americas ⁽¹⁾

Europe ⁽¹⁾

Asia Pacific ⁽¹⁾

Stock
Compensation
Expense

Consolidated

Net Sales

$ 3,618,206

$ 4,661,702

$ 268,411

$ 8,548,319

Operating income (loss) (GAAP) ⁽¹⁾

$ 61,342

$ 17,318

$ (577)

$ (7,587)

$ 70,496

Acquisition, integration and restructuring expenses

13,916

17,988

321

1,000

33,225

Legal settlements and other, net

(2,965)

–

(2,965)

Acquisition-related intangible assets amortization expense

13,643

8,329

1,332

23,304

Total non-GAAP operating income adjustments

$ 24,594

$ 26,317

$ 1,653

$ 1,000

$ 53,564

Operating income (non-GAAP)

$ 85,936

$ 43,635

$ 1,076

$ (6,587)

$ 124,060

Operating margin (GAAP)

1.70%

0.37%

-0.21%

0.82%

Operating margin (non-GAAP)

2.38%

0.94%

0.40%

1.45%

⁽¹⁾GAAP operating income does not include stock
compensation expense at the regional level.

TECH DATA CORPORATION AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(In thousands)

Selling, general and administrative expenses (“SG&A”)	Three months ended April 30,
	2019		2018
Net Sales	$	8,406,424	$	8,548,319
SG&A Expenses (GAAP)	$	405,816	$	422,361
Tax indemnifications		(320)		–
Acquisition-related intangible assets amortization expense		(20,879)		(23,304)
SG&A Expenses (non-GAAP)	$	384,617	$	399,057

SG&A Expenses (GAAP) %		4.83%		4.94%
SG&A Expenses (non-GAAP) %		4.58%		4.67%

	Three months ended April 30,
	2019		2018
	Net Income	Diluted EPS	Net Income	Diluted EPS
GAAP Results	$55,400	$1.49	$33,699	$0.87
Acquisition, integration and restructuring expenses	6,221	0.17	33,225	0.86
Legal settlements and other, net	(282)	(0.01)	(2,965)	(0.08)
Value added tax assessments and related interest expense	–	–	(928)	(0.02)
Tax indemnifications	320	0.01	–	–
Acquisition-related intangible assets amortization expense	20,879	0.56	23,304	0.61
Income tax effect of tax indemnifications	(320)	(0.01)	–	–
Income tax effect of other adjustments above	(6,321)	(0.17)	(12,908)	(0.33)
Change in deferred tax valuation allowances	–	–	(2,600)	(0.07)

Non-GAAP Results	$75,897	$2.04	$70,827	$1.84

Return on Invested Capital (ROIC)

	Twelve months ended April 30,
*TTM Net Operating Profit After Tax (NOPAT):**	2019		2018
Operating income	$	520,930	$	405,497
Income taxes on operating income ⁽¹⁾		(52,272)		(242,229)
NOPAT	$	468,658	$	163,268

Average Invested Capital:
Short-term debt (5-qtr end average)	$	115,018	$	262,413
Long-term debt (5-qtr end average)		1,361,506		1,683,828
Shareholders’ Equity (5-qtr end average)		2,881,968		2,745,501
Total average capital		4,358,492		4,691,742
Less: Cash (5-qtr end average)		(676,308)		(751,732)
Average invested capital less average cash	$	3,682,184	$	3,940,010
ROIC		13%		4%

* Trailing Twelve Months is abbreviated as TTM.
⁽¹⁾Income taxes on operating income was calculated using the trailing twelve months effective tax rate.

Adjusted Return on Invested Capital (ROIC)

	Twelve months ended April 30,
*TTM Net Operating Profit After Tax (NOPAT), as adjusted:**	2019	2018
Non-GAAP operating income ⁽¹⁾	$ 708,588	$ 603,559
Income taxes on non-GAAP operating income ⁽²⁾	(179,283)	(178,518)
NOPAT, as adjusted	$ 529,305	$ 425,041

Average Invested Capital, as adjusted:
Short-term debt (5-qtr end average)	$ 115,018	$ 262,413
Long-term debt (5-qtr end average)	1,361,506	1,683,828
Shareholders’ Equity (5-qtr end average)	2,881,968	2,745,501
Tax effected impact of non-GAAP adjustments ⁽³⁾	44,860	95,713
Total average capital, as adjusted	4,403,352	4,787,455
Less: Cash (5-qtr end average)	(676,308)	(751,732)
Average invested capital less average cash	$ 3,727,044	$ 4,035,723
Adjusted ROIC	14%	11%

*		Trailing Twelve Months is abbreviated as TTM.
⁽¹⁾		Represents operating income as adjusted to exclude acquisition, integration and restructuring expenses, legal settlements and other, net, gain on disposal of subsidiary, value added tax assessments, acquisition-related intangible assets amortization expense, goodwill impairment and tax indemnifications.
⁽²⁾		Income taxes on non-GAAP operating income was calculated using the trailing twelve months effective tax rate adjusted for the impact of non-GAAP adjustments during the respective periods.
⁽³⁾		Represents the 5 quarter average of the year-to-date impact of non-GAAP adjustments.

Guidance Reconciliation



	Three months ending July 31, 2019
	Low end of guidance range	High end of guidance range
Earnings per share – diluted	$1.53	$1.83
Acquisition, integration and restructuring expenses	0.59	0.59
Acquisition-related amortization of intangibles	0.24	0.24
Income tax effect of the above adjustments	(0.21)	(0.21)
Non-GAAP earnings per share – diluted	$2.15	$2.45

Contacts

Investor Contact
Tania Almond
Investor Relations
Director
+1 727.538.7064
[email protected]

Media Contact
Bobby Eagle
Director, External
Communications
+1 727.538.5864
[email protected]

Cannabis

Sannabis, Inc. (OTC: USPS) Unveils Innovative NO LICK! Terpene Spray for Cannabis Products to Enhance CBD and THC to Achieve the Entourage Effect

Published

14 hours ago

April 19, 2024

GlobeNewswire

Cannabis

Cannabis Concentrate Market to Cross US$2.4 Billion by 2030 amid Rising Medical and Recreational Demand

Published

1 day ago

April 18, 2024

GlobeNewswire

transfer

IMC to transfer its Oranim Pharmacy shares back to the seller

Published

4 days ago

April 16, 2024

CISION (PR Newswire)

imc-to-transfer-its-oranim-pharmacy-shares-back-to-the-seller

TORONTO and GLIL YAM, Israel, April 16, 2024 /PRNewswire/ — IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) (the “Company” or “IMC“), a leading medical cannabis company with operations in Israel and Germany, is announcing that, further to the news release dated January 12, 2024, the Company has decided not to make remaining installment payments installments (i.e. NIS 5,873K including interest or 2,154K CAD) by IMC Holdings Ltd., and as such will transfer the 51% shares held by IMC Holdings Ltd back to the seller.

“With the April 1^st cannabis legalization in Germany, we are focusing our resources on the German market, where we expect to see the biggest growth potential,” said Oren Shuster, CEO of IMC. “With both of our core markets, Germany and Israel, currently undergoing rapid evolution, we need to assure that we allocate our resources to the growth opportunities where we expect the best return on investment.”

About IM Cannabis Corp.

IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany, two of the largest medical cannabis markets. The Company has recently exited operations in Canada to pivot its focus and resources to achieve sustainable and profitable growth in its highest value markets, Israel and Germany. The Company leverages a transnational ecosystem powered by a unique data-driven approach and a globally sourced product supply chain. With an unwavering commitment to responsible growth and compliance with the strictest regulatory environments, the Company strives to amplify its commercial and brand power to become a global high-quality cannabis player.

The IMC ecosystem operates in Israel through its commercial relationship with Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms, distribution centers, and logistical hubs in Israel that enable the safe delivery and quality control of IMC’s products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients. Until recently, the Company also actively operated in Canada through Trichome Financial Corp and its wholly owned subsidiaries, where it cultivated, processed, packaged, and sold premium and ultra-premium cannabis at its own facilities under the WAGNERS and Highland Grow brands for the adult-use market in Canada. The Company has exited operations in Canada and considers these operations discontinued.

Disclaimer for Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements under applicable Canadian and U.S. securities laws (collectively, “forward-looking statements”). All information that addresses activities or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the press release, such forward-looking statements include, but are not limited to, the occurrence of growth opportunities and the likelihood of growth potential.

Forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to: the development and introduction of new products; continuing demand for medical and adult-use recreational cannabis in the markets in which the Company operates; the Company’s ability to reach patients through both e-commerce and brick and mortar retail operations; the Company’s ability to maintain and renew or obtain required licenses; the effectiveness of its products for medical cannabis patients and recreational consumers; and the Company’s ability to market its brands and services successfully to its anticipated customers and medical cannabis patients.

The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward looking statements due to a number of factors and risks. These include: any failure of the Company to maintain “de facto” control over Focus Medical in accordance with IFRS 10; the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the effect of the reform on the Company; the Company’s ability to continue to meet the listing requirements of the Canadian Securities Exchange and the NASDAQ Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and Focus Medical (collectively, the “Group”) to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group’s obligations; the Group’s possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group’s cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt and war, conflict and civil unrest in Eastern Europe and the Middle East

Any forward-looking statement included in this press release is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward-looking information is made.

The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Company Contacts:

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

Oren Shuster, Chief Executive Officer
IM Cannabis Corp.
[email protected]

Logo – https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg

View original content:https://www.prnewswire.co.uk/news-releases/imc-to-transfer-its-oranim-pharmacy-shares-back-to-the-seller-302117984.html