Business
IM Cannabis Closes Previously Announced Acquisition of Oranim Pharm, Jerusalem's Leading Medical Cannabis Pharmacy
Transaction expands IMC's footprint into Israel's largest city while positioning the Company as one of the largest retailers of medical cannabis in the
About this update from Im Cannabis Corp.
[{"type":"text","content":"Transaction expands IMC's footprint into Israel's largest city while positioning the Company as one of the largest retailers of medical cannabis in the country\nTORONTO, and GLIL YAM, Israel, March 30, 2022 /PRNewswire/ -- 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, has completed the strategic acquisition of 51% of the rights in Oranim Pharm partnership (\"Oranim Pharm\"). Oranim Pharm is one of the largest pharmacies selling medical cannabis in Israel and the largest pharmacy selling medical cannabis in the Jerusalem area. The acquisition was completed through IMC Holdings Ltd. (\"IMC Holdings\"), a wholly-owned subsidiary of IM Cannabis Corp., following receipt of all requisite approvals, including from the Israeli Medical Cannabis Agency (\"IMCA\").\nCentrally located in Jerusalem, Oranim Pharm has a successful 14-year track record of serving the needs of its loyal customer base in the area. For the twelve months ending October 31, 2021, Oranim Pharm generated revenues of approximately $16.5 million, with a gross margin1 from Cannabis activity of approximately 25% and positive EBITDA[1]. Oranim Pharm holds a pharmacy license from the IMCA to sell medical cannabis to patients.\n\"The successful acquisition of Oranim Pharm puts IM Cannabis at the forefront of medical cannabis distribution in Israel,\" said Oren Shuster, Chief Executive Officer of IM Cannabis. \"As we make further progress with our vertical integration strategy, this transaction expands our reach in Israel with a strategic entry point into the country's largest city. In addition, our ability to sell IMC brands directly through the pharmacies we own allows us to increase our margin profile while providing local medical cannabis patients with increased access to high-quality, premium cannabis. Given the rapid growth and potential upcoming legislative reform in the Israeli medical cannabis market, we view the addition of Oranim Pharm to the IMC family as a timely and mission-critical contribution to our near- and long-term success.\"\nTransaction Details\nAll amounts below are in Canadian dollars unless otherwise stated.\nIMC Holdings acquired 51.3% of the outstanding ordinary shares of Oranim Plus Pharm Ltd., an Israe...