Full Press Release Details
Cannabis to Acquire Oranim, Jerusalem's
Transaction positions IM Cannabis as one of the largest retailers
cannabis in Israel; Retail segment combined annualized revenue
approximately $44 million
Oranim's trailing 12-month revenue approximately $16.5
margin approximately 25%1 before recognizing
Toronto, Canada and Glil Yam, Israel December 1, 2021
IM Cannabis Corp. (the Company or IM Cannabis ) (CSE: IMCC, NASDAQ:
IMCC), a leading medical and adult-use recreational cannabis
company with operations in Israel, Canada, and Germany today
announced that IMC Holdings Ltd. ( IMC Holdings ), a wholly-owned
Israeli subsidiary of the Company, will acquire 51.3% of the
outstanding ordinary shares of Oranim Plus Pharm Ltd., an Israeli
company holding 99.5% of the rights in Oranim Pharm Partnership
resulting in IMC Holdings holding 51% of the rights in Oranim (the
Oranim is one of the largest pharmacies selling medical cannabis in
Israel and the largest pharmacy selling medical cannabis in the
centrally located in Jerusalem, is a well-established brand with a
fourteen year track record of successfully serving the needs of
medical cannabis patients in the area. For the twelve months ending
October 31, 2021, Oranim generated revenues of approximately $16.5
million, with a gross margin1 from Cannabis
activity of approximately 25% and positive EBITDA2. Oranim holds a
pharmacy license from the Israeli Medical Cannabis Unit
("IMCU") to sell medical
cannabis to patients.
the signing of the definitive agreement of the Oranim acquisition,
IM Cannabis has signed four definitive agreements with cannabis
pharamcies in Israel with a combined run rate revenue of
approximately $44 million. These transactions not only position the
Company as one of the largest cannabis retailers in Israel, they
also form a critical foundation of IM Cannabis' vertically
integrated multi-country strategy. With the recent import permit
granted by the Ministry of Health and the upcoming launch of
WAGNERS premium brand, indoor-grown dried flower from the
Company's Canadian grow facilities, IM Cannabis' global
seed-to-sale platform will continue to extend its reach while
maximizing revenue and margins.
on the transaction, Oren Shuster,
Chief Executive Officer of IM Cannabis stated, As one
of the largest medical cannabis pharmacies in Israel, the
acquisition of Oranim positions IM Cannabis as one of the largest
distributors of medical cannabis in the country and provides IM
Cannabis with a strategic entry point into its largest city and
most populated area. Consistent with our stated strategy of
vertical integration, this transaction increases our distribution
reach in Israel, provides margin enhancing opportunities, and gives
medical cannabis patients access to high quality, premium cannabis.
With rapid growth in the Israeli medical cannabis market and in
anticipation of potential legislative reform, the addition of
Oranim and their dedicated employees will be a positive
contribution to IM Cannabis.
1 For an explanation of this metric, please refer
to the section of this press release titled "Non-IFRS Financial
2 For an explanation of this metric, please refer
to the section of this press release titled "Non-IFRS Financial
Holdings has signed a definitive agreement in respect of the
Acquisition for total consideration of approximately NIS 11.94
million (approximately $4.9 million), to be paid in cash and common
shares of the Company. The cash consideration component of
approximately NIS 10.40 million (approximately $4.3 million) will
be paid in two installments, with 50% paid at signing of the
definitive agreement and 50% payable upon IMCU approval. The share
consideration component of NIS 1.54 million (approximately $630
thousand) will be paid at Closing of the Acquisition ("Closing"), with the number of shares
issuable (the Consideration
Shares ) calculated based on the average closing price
of IM Cannabis' common shares on the Nasdaq Capital Market
for the 14 trading days prior to Closing. The Consideration Shares
are subject to a staggered three-month lockup after
is conditional upon receipt of all requisite approvals, including
from the IMCU. It is expected that Closing will occur in the second
About IM Cannabis Corp.
Cannabis (NASDAQ: IMCC, CSE: IMCC) is a leading international
cannabis company providing premium products to medical patients and
adult-use recreational consumers. IM Cannabis is one of the very
few companies with operations in Israel, Germany and Canada, the
three largest federally legal markets. The ecosystem created
through its international operations leverages the Company's
unique data-driven perspective and product supply chain globally.
With its commitment to responsible growth and financial prudence,
and the ability to operate within the strictest regulatory
environments, the Company has quickly become one of the leading
cultivators and distributors of high-quality cannabis
Cannabis ecosystem operates in Israel through its commercial
relationship with Focus Medical Herbs Ltd. ( Focus
Medical ), which cultivates, 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 centres 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 IM Cannabis ecosystem operates through Adjupharm GmbH
( Adjupharm ), where it also distributes cannabis to
medical patients. In Canada, the Company operates through Trichome
JWC Acquisition Corp. d/b/a JWC 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
Company and its management believe that the estimated revenues