Business
IM Cannabis Announces Additional Restructuring Initiatives Designed to Drive Sustainable Profitability and Reduce Costs
The Company aims for a leaner organization with a primary focus on achieving profitability in 2023 and approximately CAD$3.5 million in annualized cost
About this update from Im Cannabis Corp.
[{"type":"text","content":"The Company aims for a leaner organization with a primary focus on achieving profitability in 2023 and approximately CAD$3.5 million in annualized cost savings \nTORONTO and GLIL YAM, Israel, March 8, 2023 /PRNewswire/ -- IM Cannabis Corp. (the \"Company\" or \"IMC\") (NASDAQ: IMCC) (CSE: IMCC), an international medical cannabis company, today announced a reorganization of the company's management and operations to strengthen its focus on core activities and drive efficiencies to realize sustainable profitability. To achieve this goal, the Company will be reducing its workforce in Israel by 20%-25% across all functions. All actions associated with the workforce reduction are expected to be substantially complete by mid-2023, subject to applicable Israeli law.\n\"The restructuring initiatives announced today follow our departure from the Canadian cannabis market to focus our resources on growth opportunities in Israel, Germany and Europe. It further reflects our determination to continue with our strategic plan by maximizing efficiencies to create a leaner and more flexible organization to better suit the current market environment and our short- to mid-term objectives\" says Oren Shuster, CEO of IM Cannabis. \"We expect approximately CAD$3.5 million of annualized cost savings from mid-2023, while maintaining our anticipated revenue.\"\nAs part of the restructuring plan, key positions in the Company's global leadership team will be transitioned to highly skilled internal successors, who will be supported through a three-month transition period and a closely monitored handover process to ensure continuity.\nShai Shemesh, Chief Financial Officer of the Company, will be stepping down and handing over his responsibilities through a structured transition period to Itay Vago, who will be appointed as the Company's Chief Financial Officer. In his last role, Itay served as Finance Director of IMC Holdings Ltd., the Company's Israeli subsidiary (\"IMC Holdings\"). Itay is a skilled executive finance manager with more than 15 years of experience in multinational, publicly traded companies in the high-tech and pharmaceutical industries.\nRinat Efrima, Chief Executive Officer of IMC Holdings, will be stepping down and handing over her responsibilities through a structured transition period to Eyal Fisher, who will be appointed as the General...