Cannabis
Trichome Financial Reports Q3 2019 Financial Results and Provides Outlook
Trichome Financial Corp. (formerly 22 Capital Corp.) (the “Company” or “Trichome Financial“) (TSXV: TFC) today announced its financial results for the three and nine-month periods ended September 30, 2019.
The complete Financial Statements and Management’s Discussion and Analysis for the three- and nine-month periods ended September 30, 2019, along with additional information about the Company and all of its public filings are available at www.sedar.com.
Third quarter highlights
Highlights during the quarter ended September 30, 2019:
- Entered into a $5.5 million senior secured term loan to MYM Nutraceuticals Inc. (CSE:MYM), of which $3 million was funded on closing, and a $2.35 million senior secured term loan to Good Buds Company International Inc.;
- Received full repayment of loans to C.G.S. Foods Inc. (an Ontario cannabis retailer doing business as ‘Ganjika House’) in the amount of $1.25 million and early repayment of the Company’s loan to Blissco Holdings Ltd. in the amount of $1.4 million
- Total par value of investments increased to $8.9 million with a further $2.5 million in commitments, compared to $0.5 million as of December 31, 2018; and
- Appointed Karl Grywacheski as Chief Financial Officer and Dan Cohen as Vice President, General Counsel of Trichome Financial.
Highlights subsequent to the quarter ended September 30, 2019:
- Completed a reverse takeover with 22 Capital Corp. on October 4, 2019, and listed on the TSXV under ticker symbol “TFC” on October 10, 2019;
- Closed a private placement on October 4, 2019, raising gross proceeds of approximately $16.5 million resulting in pro forma cash of $21.1 million and pro forma working capital of $24.4 million;
- Increased the loan agreement to James E. Wagner Cultivation Corporation (“JWC”) (TSXV:JWCA) to $7.5 million from $3.5 million;
- Entered into the Company’s first receivables financing facility with JWC for up to $5.0 million; and
- Received conditional approval to list its common shares on the Canadian Securities Exchange, with successful listing to allow the Company to expand its addressable market for credit solutions to include the cannabis sector in the United States.
“The operational and funding challenges the cannabis sector has experienced in the last six months have been a significant tailwind to Trichome Financial. Our deal pipeline continues to increase, and the quality of actionable opportunities has high-graded materially. Consequently, we believe the risk-return profile of our investment opportunities remains very attractive,” said Michael Ruscetta, Chief Executive Officer. “The need for credit in the cannabis sector is expected to continue increasing at a rapid pace and Trichome Financial remains in an excellent position to capitalize on these opportunities.”
Outlook
The current environment in the cannabis sector is highly favourable for Trichome Financial. Our business model is unique in that it benefits from both the structural, long-term growth of the global cannabis industry as well periods of market volatility when investor confidence wanes. Since the middle of 2019, a series of events have contributed to creating a negative feedback loop for investor confidence in the cannabis sector. A detailed discussion of these events, as well as key learnings by management of Trichome Financial over the last 18 months was published by the Company in a press release on October 7, 2019. Since then, operational and financial performance in the cannabis sector have only deteriorated. This has led to a highly favourable environment for Trichome Financial characterized by an increase in the number of companies in need of Trichome’s solutions, an increase in overall borrower quality as a result of being able to select from an even larger pool of opportunities and improving risk-adjusted return profiles through increasing contractual returns, higher warrant and equity coverage and more favourable structural enhancements.
Trichome has raised gross proceeds of approximately $31.8 million and is in the process of constructing a portfolio of diligently underwritten and structured income generating credit investments. To date, Trichome has closed seven credit transactions to six unique counterparties, with three of those loans having been fully repaid. As at September 30, 2019 the par value of loans outstanding was $8.9 million, with a further $2.5 million committed. Subsequent to quarter end, the par value of loans outstanding increased to $11.7 million with a further $3.7 million committed. The weighted average effective interest rate of the portfolio is approximately 14%, excluding warrants and equity consideration, and the annualized interest revenue from the portfolio is approximately $1.8 million. Interest revenue is expected to grow commensurately with further deployment of the Company’s cash into income-generating credit investments. This amount could be partially offset by any prepayments or early terminations. Total cash-based operating expenses are estimated to be approximately $1.9 million on an annualized basis, excluding one-time listing and fund set-up costs, which could increase by approximately $0.6 million if annual bonus payments are merited. Management expects modest increases in the expense base to continue the buildout of Trichome’s infrastructure. No capital expenditures are planned. Management believes that the proceeds from the disposition of warrants and shares, fee income from the launch of Trichome Financial Cannabis Private Credit Fund (“Trichome Private Credit”), the accretive effect of adding portfolio leverage, and the potential to launch complimentary business lines has the potential to materially increase overall profitability.
Financial results for the three months ended September 30, 2019
For the quarter ended September 30, 2019, interest revenue increased to $412,304 from $9,437 compared to the quarter ended September 30, 2018. This is the result of the par value of total investments increasing over the course of the year to $8.9 million at quarter end, from $0.5 million as of December 31, 2018.
Trichome Financial realized an adjusted loss of $343,276 as compared to $514,847 in the prior year. Offsetting the increase in interest revenue were increases to operating expenses related to hiring new employees, leasing office space, insurance and expenses incurred to perform due diligence on new loans, such as legal, professional, and travel costs. Adjusted loss is calculated by excluding certain non-cash and non-recurring items from net loss as calculated under IFRS.
Cash and restricted cash totaled $15.9 million as of September 30, 2019, compared to $13.8 million on December 31, 2018. Subsequent to its private placement on October 4, 2019, the Company had pro forma cash of $21.1 million and pro forma working capital of $24.4 million.
|
Summary of operations |
Three months ended September |
Three months ended |
Nine months ended |
Nine months ended |
||||
|
Interest revenue |
$ |
412,304 |
$ |
9,437 |
$ |
693,368 |
$ |
12,930 |
|
Operating loss |
(548,879) |
(888,297) |
(1,794,874) |
(1,099,807) |
||||
|
Total net and comprehensive loss |
(1,117,908) |
(923,784) |
(3,147,227) |
(1,135,294) |
||||
|
Adjusted loss1 |
(343,276) |
(514,847) |
(888,795) |
(679,122) |
||||
|
As at September 30, 2019 |
As at September 30, 2018 |
|||||||
|
Cash and restricted cash2 |
$15,928,799 |
$13,810,095 |
||||||
|
Loan book: |
Term / Interest rate |
Loan amount |
Term / Interest rate |
Loan amount |
||||
|
James E. Wagner Cultivation Corporation (JWC) |
24 months / 9.25% |
$3,500,000 |
– |
– |
||||
|
Good Buds Company International Inc. (Good Buds) |
13 months / 11.5% |
$2,350,000 |
– |
– |
||||
|
MYM Nutraceuticals Inc. (MYM) |
12 months / 12.0% |
$3,000,000 |
– |
– |
||||
|
180 Smoke Inc. (180 Smoke) |
– |
– |
12 months / 10.0% |
$425,000 |
||||
|
Total loan book |
$8,850,000 |
$425,000 |
||||||
|
Committed capital: |
MYM: |
$2,500,000 |
– |
– |
||||
|
JWC (factoring): |
$5,000,000 |
– |
– |
|||||
|
– |
– |
180 Smoke: |
$2,075,000 |
|||||
|
Other highlights: |
||||||||
|
Fair value of warrants |
$574,216 |
$17,314 |
||||||
|
Loan amount |
Loan amount |
|||||||
|
Loans fully repaid during year: |
180 Smoke |
$425,000 |
– |
– |
||||
|
Blissco Holdings Ltd. |
$1,500,000 |
– |
– |
|||||
|
C.G.S. Food Inc. d/b/a Ganjika House |
$1,250,000 |
– |
– |
|||||
|
(1) Refer to Adjusted losssection within Management’s Discussion and Analysis |
||||
|
(2) Restricted cash was converted to free cash on October 4, 2019. Additional $6 million cash raised in October 2019 |
SOURCE Trichome Financial Corp.
TORONTO and GLIL YAM, Israel, Sept. 11, 2024 /PRNewswire/ — IM Cannabis Corp. (“IMC” or the “Company“) (NASDAQ: IMCC) (CSE: IMCC), a leading medical cannabis company with operations in Israel and Germany, is pleased to announce that Mr. Shmulik Arbel has been appointed to the Company’s board of directors (the “Board“) effective September 9, 2024. Mr. Arbel brings a wealth of experience in strategic plans that drive profitability, as well as, finance and corporate governance, further strengthening the company’s commitment to driving growth while focusing on sustainable profitability.
“We are thrilled to welcome Shmulik to our Board of Directors,” said Oren Shuster, Chief Executive Officer of IM Cannabis. “Shmulik’s extensive international experience at Leumi, coupled with his proven track record in banking and finance will be invaluable as we continue to deliver on our strategic initiatives.”
Mr. Arbel retired as Deputy CEO from Leumi, Israel’s largest banking group, in April 2023, where he was instrumental in business growth and leading the service revolution. With over 25 years of experience at Leumi, Arbel has held senior roles throughout the organization, such as head of retail banking, head of the corporate division, and as chairman of Leumi UK. With key roles in Israel, New York and London, Mr. Arbel has a wide view on international business.
“I am honored to join the Board of Directors at IMCC,” said Mr. Arbel. “I look forward to leveraging my experience in banking and finance, providing guidance as IMCC continues to establish itself as the go-to brand in the cannabis world. I look forward to contributing to the company’s growth.”
Arbel holds a BA and MBA from Tel Aviv University.
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 United States 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: the stated benefits Mr. Arbel’s appointment, including the further strengthening the Company’s commitment to driving growth in the German market while focusing on sustainable profitability; and Mr. Arbel’s international experience and track record in banking and finance will be invaluable to the Company.
Forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to: the Company’s ability to realize upon the stated benefits Mr. Arbel’s appointment; and Mr. Arbel’s international experience and track record in banking and finance becoming invaluable to the Company.
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 its subsidiaries (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; risks surrounding war, conflict and civil unrest in Eastern Europe and the Middle East, including the impact of the Israel-Hamas war on the Company, its operations and the medical cannabis industry in Israel; risks associated with the Company focusing on the Israel and Germany markets; the inability of the Company to achieve sustainable profitability and/or increase shareholder value; the inability of the Company to actively manage costs and/or improve margins; the inability of the company to grow and/or maintain sales; the inability of the Company to meet its goals and/or strategic plans; the inability of the Company to reduce costs and/or maintain revenues; the Company’s inability to take advantage of the legalization of medicinal cannabis in Germany; and the Company’s inability to realize upon the stated benefits Mr. Arbel’s appointment; and Mr. Arbel’s international experience and track record in banking and finance not becoming valuable to the Company.
Please see the other risks, uncertainties and factors set out under the heading “Risk Factors” in the Company’s annual report dated March 28, 2024, which is available on the Company’s issuer profile on SEDAR+ at www.sedarplus.ca and Edgar at www.sec.gov/edgar. 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 Contact:
Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
[email protected]
Oren Shuster, CEO
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/im-cannabis-announces-appointment-of-shmulik-arbel-to-board-of-directors-302244961.html
Cannabis
Europe Medical Cannabis Market Forecast 2024-2032: Tilray, Aurora Cannabis, and GW Pharmaceuticals Dominate the Market Landscape
Dublin, Aug. 29, 2024 (GLOBE NEWSWIRE) — The “Europe Medical Cannabis Oil Market Size, Industry Dynamics, Opportunity Analysis and Forecast 2024-2032.” report has been added to ResearchAndMarkets.com’s offering.
The Europe Medical Cannabis Oil market is poised for significant growth, projected to escalate from US$ 0.91 billion in 2023 to US$ 2.40 billion by 2032, advancing at a CAGR of 12.08%. In this comprehensive research report, the market is analyzed by:
- Derivatives;
- Source;
- Application;
- Route of Administration;
- End-user;
- Distribution Channel; and
- Country.
Market Highlights Identified in the Report
- Progressive legalization across Europe is creating a favorable regulatory environment, enhancing market expansion for medical cannabis oil products.
- Germany leads the market with a robust infrastructure and supportive regulations, while other countries like the UK, Italy, and Spain show significant growth potential based on evolving regulatory landscapes and market dynamics.
- Key players such as Tilray, Aurora Cannabis Inc., and GW Pharmaceuticals dominate the market, emphasizing research, strategic partnerships, and innovation to maintain competitive edge amidst evolving industry dynamics.
The medical cannabis oil market has experienced substantial growth as legalization and acceptance of cannabis-based treatments expand globally. Cannabis oil, derived from the cannabis plant through extraction methods, contains cannabinoids such as THC and CBD, known for their therapeutic properties. Increasing recognition of cannabis oil’s potential in alleviating symptoms of various medical conditions, including chronic pain, epilepsy, and anxiety disorders, has driven its adoption in medical settings.
Governments in several countries are progressively legalizing medical cannabis, creating a conducive regulatory environment for market expansion. Additionally, growing consumer awareness about alternative and natural therapies has fueled the demand for cannabis oil products. The market is characterized by diverse product offerings, including full-spectrum and CBD-isolate oils, catering to different therapeutic needs and preferences.
Despite regulatory challenges and stigma associated with cannabis, the medical cannabis oil market continues to evolve, driven by ongoing research, favorable legislative changes, and shifting attitudes toward cannabis-based therapies in healthcare.
Regional Insights
Germany is likely to maintain its leadership position in the European medical cannabis oil market due to its established infrastructure, supportive regulations, and strong healthcare system. Germany legalized medical cannabis in 2017, giving the market a head start compared to many other European countries. This established infrastructure and experience position Germany as a leader in the field. As awareness and acceptance of medical cannabis increase, the number of patients seeking treatment in Germany is steadily rising. This fuels market growth and incentivizes further investment in research and development.
Germany’s regulatory framework for medical cannabis is considered relatively patient-friendly compared to some other European countries. This facilitates access for patients with qualifying conditions. The UK legalized medical cannabis in 2018 and is experiencing an increase in patient access programs. This, coupled with ongoing research, could lead to significant market growth. Italy legalized medical cannabis in 2006 but has faced challenges with availability. As regulations become more streamlined and patient access expands, the Italian market holds significant growth potential. Spain has a well-established medical cannabis industry with a focus on domestic production. As regulations evolve and export opportunities increase, the Spanish market could see a boost.
Competitive Landscape
The Medical Cannabis Oil market is characterized by a vigorous competitive landscape, with prominent entities like Tilray, Aurora Cannabis Inc., GW Pharmaceuticals, Almiral, Bedrocan, and others at the forefront, collectively accounting for approximately 41 % of the overall market share. This competitive milieu is fueled by their intensive efforts in research and development as well as strategic partnerships and collaborations, underscoring their commitment to solidifying market presence and diversifying their offerings.
The primary competitive factors include pricing, product caliber, and technological innovation. As the Medical Cannabis Oil industry continues to expand, the competitive fervor among these key players is anticipated to intensify. The impetus for ongoing innovation and alignment with evolving customer preferences and stringent regulations is high. The industry’s fluidity anticipates an uptick in novel innovations and strategic growth tactics from these leading corporations, which in turn propels the sector’s comprehensive growth and transformation.
Key Topics Covered
Chapter 1. Research Framework
Chapter 2. Research Methodology
Chapter 3. Executive Summary: Europe Medical Cannabis Oil Market
Chapter 4. Europe Medical Cannabis Oil Market Overview
Chapter 5. Europe Medical Cannabis Oil Market Analysis, by Derivatives
Chapter 6. Europe Medical Cannabis Oil Market Analysis, by Source
Chapter 7. Europe Medical Cannabis Oil Market Analysis, by Application
Chapter 8. Europe Medical Cannabis Oil Market Analysis, by Route of Administration
Chapter 9. Europe Medical Cannabis Oil Market Analysis, by End-user
Chapter 10. Europe Medical Cannabis Oil Market Analysis, by Distribution Channel
Chapter 11. Europe Medical Cannabis Oil Market Analysis, by Country
Chapter 12. The UK Medical Cannabis Oil Market Analysis
Chapter 13. Germany Medical Cannabis Oil Market Analysis
Chapter 14. The Netherlands Medical Cannabis Oil Market Analysis
Chapter 15. Italy Medical Cannabis Oil Market Analysis
Chapter 16. Spain Medical Cannabis Oil Market Analysis
Chapter 17. Poland Medical Cannabis Oil Market Analysis
Chapter 18. Rest of Europe Medical Cannabis Oil Market Analysis
Chapter 19. Company Profiles (Company Overview, Financial Matrix, Key Product Landscape, Key Personnel, Key Competitors, Contact Address, and Business Strategy Outlook)
A selection of companies mentioned in this report includes, but is not limited to:
- Aurora Cannabis Inc.
- Bedrocan
- Biocann
- BIOTA Biosciences LLC
- Cannamedical
- Mary Jane CBD
- Sanity Group GmbH
- Tilray
- Valcon Medical
For more information about this report visit https://www.researchandmarkets.com/r/dh7q46
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
-
Cannabis2 weeks agoEurope Medical Cannabis Market Forecast 2024-2032: Tilray, Aurora Cannabis, and GW Pharmaceuticals Dominate the Market Landscape
-
Innocan2 weeks agoInnocan Pharma Announces Closing of Private Placement and Grant of Stock Options
-
Indivior1 week agoIndivior Provides Update on Aelis Farma’s Clinical Phase 2B Study Results with AEF0117 in Participants with Cannabis Use Disorder
-
Cannabis1 day ago
One World Products Issues Shareholder Update Letter
-
Cannabis1 day agoIM Cannabis Announces Appointment of Shmulik Arbel to Board of Directors
