The company will focus its efforts and resources on growth in
Israel and Germany, with a primary focus of achieving
profitability in 2023
Trichome Financial Corp. and certain of its subsidiaries have
obtained protection from creditors pursuant to the Companies'
Creditors Arrangement Act ("CCAA")
GLIL YAM, Israel, Nov. 7, 2022
/PRNewswire/ -- IM Cannabis Corp. ("IMC" or the
"Company") (NASDAQ: IMCC) (CSE: IMCC), an international
medical and adult-use recreational cannabis company, announces,
effective today, that it is commencing exit of the Canadian
cannabis market to focus its resources on pursuing growth
opportunities in Israel,
Germany and Europe.
With this move, the Company aims for a leaner organization with
a primary focus on achieving profitability in 2023. IMC will
continue building on the increasing demand and positive momentum in
Israel, fueled by strategic
alliances with top-of-the-line Canadian suppliers and a highly
skilled sourcing team, to cement its leadership position in
Israel and to advance a long-term
growth plan in Germany. In the
Company's view, the strong sourcing infrastructure in Israel, powered by advanced product knowledge
and regulatory expertise, will constitute a key competitive
advantage in Germany, especially
upon legalization of recreational cannabis. This is based on the
premise that the German and Israeli markets share a number of
common attributes such as robust commercial infrastructure, highly
developed digital capabilities, favourable demographics and
customer preferences.
"Our announcement today is a crucial part of our ongoing
strategic refocusing plan to concentrate our efforts on the highest
value markets and accelerate our path to profitability" says
Oren Shuster, CEO of IM
Cannabis. "By exiting the Canadian Cannabis market, we are
seeking to maximize efficiency and create the right balance for
future success. We are further strengthening our Israeli operations
and preparing to bring our expertise to Europe to achieve market leadership in the
medical cannabis market and to be fully ready to capitalize on the
recreational market upon legalization."
In connection with the announced restructuring, IMC's
wholly-owned Canadian subsidiary, Trichome Financial Corp.
("Trichome Financial"), and certain of its wholly-owned
subsidiaries, including Trichome JWC Acquisition Corp., MYM
Nutraceuticals Inc., Trichome Retail Corp., MYM International
Brands Inc., and Highland Grow Inc. (Collectively Trichome
Financial, "Trichome"), filed this morning and obtained
creditor protection under the Canadian Companies' Creditors
Arrangement Act ("CCAA") pursuant to an order of the
Ontario Superior Court of Justice (Commercial List) (the
"Court"). The CCAA proceedings are solely in respect of
Trichome. As such, the Company's other assets or subsidiaries,
including those in Israel and
Germany, are not parties to the
CCAA proceedings.
The CCAA proceedings will afford Trichome the stability and
flexibility required to restructure its business, including through
a sale and investment solicitation process to be approved by the
Court ("SISP"). Accordingly, the Company's operations in
Canada are expected to continue
through Trichome until a sale transaction or one or more other
restructuring transactions is completed.
Court materials filed in connection with Trichome's CCAA
proceedings can be found
at https://www.ksvadvisory.com/insolvency-cases/case/trichome.
About IM Cannabis Corp.
IM Cannabis (NASDAQ: IMCC) (CSE: IMCC) is an international
cannabis company providing premium products to medical patients in
Israel and Germany, Canada, the three largest federally legal
markets. 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. ("Focus Medical"), 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 IM Cannabis products throughout the entire value
chain. In Germany, the IMC
ecosystem operates through Adjupharm GmbH, where it also
distributes cannabis to pharmacies to medical cannabis patients. In
Canada, IMC operates through
Trichome Financial and its wholly-owned subsidiaries Trichome JWC
Acquisition Corp. and MYM Nutraceuticals Inc., where it cultivates
and processes cannabis for the adult-use market at its Ontario and Nova
Scotia facilities under the WAGNERS and Highland Grow
brands. For more information, please visit www.imcannabis.com.
Company Contact:
Maya
Lustig, Director Investor & Public Relations
IM Cannabis
+972-54-677-8100
maya.l@imcannabis.com
Oren Shuster, CEO
IM Cannabis Corp.
+972-77-3603504
info@imcannabis.com
Disclaimer for Forward-Looking Information
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
Canadian and United States
securities laws (collectively, "forward-looking
information"). Forward-looking information is 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 information in this press release
includes, without limitation, statements relating to the Company
leaving the Canadian cannabis market to focus on Israel, Germany and Europe; achieving profitability in 2023;
expectations related to demand and momentum in the Company's
Israeli operations; the restructuring of Trichome under the CCAA;
and the continuation of the Company's Canadian operations through
Trichome until a sale transaction or one or more other
restructuring transactions is completed.
By its very nature, forward-looking information involves
inherent risks and uncertainties, which gives rise to the
possibility that actual results may differ materially from those
currently anticipated or implied in this press release. These
include, but are not limited to: any failure of the Company to
maintain "de facto" control over Focus Medical and/or High Way
Shinua Ltd. ("HW Shinua") 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 Canada, Israel or Germany such as the Israeli or German
government deciding to abandon efforts to decriminalize or legalize
adult-use recreational cannabis; the ability of the Company to
access future financing if needed or on terms acceptable to the
Company; risks of product liability and other safety-related
liability from the usage of the Company's cannabis products; supply
chain constraints; loss of licenses; competition; reliance on key
personnel; litigation risks; the risk of defaulting on existing
debt and war and civil conflict in Eastern Europe and the Middle
East.
Please see the other risks, uncertainties and factors set out
under the heading "Risk Factors" in the Company's management's
discussion and analysis dated August
15th, 2022 and annual information form dated
March 31st, 2022 filed
with Canadian securities regulators and which are available on the
Company's issuer profile on SEDAR at www.sedar.com and EDGAR at
www.sec.gov. Any forward-looking information 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 such date. The Company does not undertake any obligation to
update forward-looking information except as required by applicable
securities laws. Investors should not place undue reliance on
forward-looking information. Forward-looking information contained
in this press release is expressly qualified by this cautionary
statement.
Logo -
https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg
View original
content:https://www.prnewswire.com/news-releases/im-cannabis-to-focus-on-israel-german-and-european-growth-commences-exiting-the-canadian-cannabis-market-301670686.html
SOURCE IM Cannabis Corp