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IM Cannabis Reports Third Quarter 2022 Financial Results; Revenues Increased 78% YoY and 12% Sequentially
Company to refocus resources and efforts on the Israeli and German markets; Commences exit of the Canadian market TORONTO and GLIL YAM, Israel, Nov. 14, 2022
About this update from Im Cannabis Corp.
[{"type":"text","content":"Company to refocus resources and efforts on the Israeli and German markets; Commences exit of the Canadian market\nTORONTO and GLIL YAM, Israel, Nov. 14, 2022 /PRNewswire/ -- IM Cannabis Corp. (the \"Company\", \"IM Cannabis\", or \"IMC\") (CSE: IMCC) (NASDAQ: IMCC), a leading medical cannabis company, provided financial results for its third quarter ended September 30, 2022. All amounts are reported in Canadian dollars unless otherwise stated.\n \nQ3 2022 Highlights\nRevenues for Q3 2022 were $14.2 million, compared to $8.0 million on Q3 2021, an increase of 78%, representing a 12% sequential organic growth.Gross profit, before fair value adjustments, for Q3 2022 was $2.8 million, compared to $2.0 million in Q3 2021, an increase of 39%.Gross Margin, before fair value adjustments, for Q3 2022 was 20%, compared to 25% in Q3 2021.Canadian restructuring efforts continued with the decision to seek a sale of the Company's Canadian operations in September 2022. On November 7, 2022, the Company announced that it was commencing an exit of the Canadian cannabis market to focus its resources on pursuing growth opportunities in Israel, Germany and Europe. Trichome and certain of its wholly-owned subsidiaries (\"Trichome\"), filed for and obtained creditor protection under the Canadian Companies' Creditors Arrangement Act (\"CCAA\"). 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.Trichome's assets and associated liabilities are classified as \"held for sale\" in the consolidated statement of financial position as of September 30, 2022 and as \"discontinued operations\" in the consolidated statements of profit or loss and other comprehensive income for all periods presented.Total assets as of September 30, 2022 were $129.1 million compared to $287.4 million as of December 31, 2021, representing a decrease of $158.3 million or 55%. This decrease in the Company's Total Assets was primarily due to the goodwill impairment of Trichome in the amount of $107.9 million.Management Commentary\n\"The third quarter marked a pivotal moment on our trajectory to profitability,\" said Oren Shuster, Chief Executive Officer of IM Cannabis. \"By commencing our exit from Canada, we are now concentrating all our efforts on ...