Full Press Release Details
IM Cannabis Announces Third Quarter 2021 Financial Results and
Provides Outlook and Business Update
Q3 2021 revenues of $14.4 million; a 30% increase from Q2
Gross margin improved to 20% from 5.4% in Q2 2021; expected to
increase further in Q4 and into 2022
Canadian recreational brands WAGNERS and Highland Grow continue to
gain market share, with sales in Ontario from June to October
increased by over 110%
Toronto, Canada; Glil Yam, Israel, November 15,
Cannabis Corp. ( IMC or the Company ) (CSE: IMCC, NASDAQ: IMCC), a
multi-country operator ( MCO ) in the medical and adult-use recreational
cannabis sector with operations in Israel, Canada, and Germany,
today announced its unaudited financial results for the three and
nine-month periods ended September 30, 2021.
All figures are expressed in Canadian dollars unless otherwise
Revenues for Q3 2021 were $14.4 million,
a sequential increase of approximately 30% from Q2 2021. Had the
acquisitions of MYM closed and Pharm Yarok Transaction and Vironna
Transaction1 signed at the start of the quarter,
revenue for Q3 2021 would have been approximately $1.4m
Gross Margin2, before fair value adjustments, for Q3
2021 was 20.0%, up from 5.4% in Q2 2021
Adjusted EBITDA3 loss for Q3 2021 was $7.0 million,
inclusive of $1.6 million of non-recurring acquisition-related
costs in the quarter
Commenting on the Company's results, Oren Shuster, Chief Executive
Officer of IMC said, Our
third quarter results are indicative of the embedded growth profile
of our integrated MCO model. Over the past year, we have completed
a number of strategic and accretive acquisitions that have
vertically integrated our operations, providing IMC with premium
cultivation capacity, sought after brands and expanded distribution
reach. Today we are seeing the revenue growth and margin
opportunities of our unique business model, trends that we expect
Outlook and Regional Business Update
IMC expects continued sequential revenue growth in Q4 2021 and into
2022, with recent acquisitions in Israel4and Canada
having been integrated, and the portfolio positioned to optimize
revenue and margins across jurisdictions. IMC anticipates that
gross margin will continue to increase as revenue growth offsets
fixed operating costs, particularly in Canada.
Market conditions and activities across each of the jurisdictions
in which IMC carries on business are highly favourable for the
Company and highlight the integrated nature of its
1 IMC has not yet completed the
Pharm Yarok Transaction and Vironna Transaction, however under
IFRS, IMC consolidates their financial results in its financial
statements commencing on the date of signing each of the respective
definitive agreements
an explanation of this metric, please refer to the section of this
press release titled "Non-IFRS Financial Metrics"
3 For an explanation of
this metric, please refer to the section of this press release
titled "Non-IFRS Financial Metrics"
quarter end, Focus Medical Herbs Ltd. ( Focus Medical )
received Ministry of Agriculture approval to import WAGNERS
premium, indoor-grown cannabis to the Israeli market. With Ministry
of Heath approval expected before year-end, Focus Medical will be
able to provide a consistent supply of premium cannabis to patients
IMC's Canadian-grown cannabis underscores the importance of
the strategic acquisitions it has made over the last 9 months. With
higher selling prices in Israel as compared to Canada along with
the acquisitions of pharmacies in Israel, IMC will be able to
realize higher gross margins5 and satisfy the increasing demand of
patients in Israel for premium indoor-grown Canadian
continue to import Canadian-grown premium cannabis from Avant
Brands Inc. ( Avant Brands ), having received its first
shipment to Israel in September, as well as imports from The Flowr
Corporation ( Flowr ). With diversified sources of
premium grade cannabis, Focus Medical can ensure that it meets the
evolving demands of its patients.
consistently high quality and THC levels, increased brand
recognition, additional SKUs, retail penetration and
value-for-money, WAGNERS and Highland Grow continue to build
momentum and market share.
Since June 2021 when WAGNERS was launched in
Ontario, combined sales of WAGNERS and Highland Grow in Ontario
have increased by over 110%6. With the
success of recently launched Cherry Jam, Pink Bubba and Blue Lime
Pie offerings, and additional SKUs expected to be secured in
Ontario's most recent product call, the Company believes that
its Canadian recreational cannabis business will continue to gain
In Ontario, Canada's largest provincial
market for cannabis, Highland Grow flower was ranked first in
market share in the ultra-premium flower segment with 12.5% market
share for the month of October. In the premium flower segment,
WAGNERS was ranked sixth for the month of October with market share
of 3.8%. Combining ultra-premium and premium flower segments,
Highland Grow and WAGNERS ranked fourth in Ontario in October
across all licensed producers selling premium and ultra-premium
flower, with 6.3% market share7.
addition to Ontario, WAGNERS and Highland Grow have built
considerable market share in the Maritime provinces, recently
launched in Manitoba with great initial success, and has re-entered
the Alberta market with 18 active SKUs.
cultivation activities continue to meet or exceed internal
benchmarks for production, yields and THC levels. The Company
expects to be producing approximately 7,000 kg of dried flower
run-rate basis by the end of the first quarter of 2022, an increase
of over 40% from current levels, as process improvements are