Business
IM Cannabis Strengthens Focus on Importing Premium and Ultra-Premium Products from its Canadian Subsidiaries
Closure of Sde Avraham farm in Israel optimizes Company's organizational structure by fully leveraging global import-export supply chain Increase in Revolving
About this update from Im Cannabis Corp.
[{"type":"text","content":"Closure of Sde Avraham farm in Israel optimizes Company's organizational structure by fully leveraging global import-export supply chain\nIncrease in Revolving Credit Facility availability to $15 million supports increased global demand for premium cannabis\n \nTORONTO, Canada and GLIL YAM, Israel , April 6, 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, today announced new strategic imperatives designed to enhance organizational efficiency and reduce operating costs while further responding to the increased demand for premium, indoor-grown Canadian cannabis from Israeli consumers. As part of these changes, Focus Medical Herbs Ltd. (\"Focus Medical\") has decided to close the Sde Avraham cultivation farm in Israel that it owns and operates. Focus Medical has an exclusive commercial agreement with IM Cannabis to distribute its production under the IMC brand. Focus Medical will complete the closure of the Sde Avraham cultivation farm during the second quarter of 2022.\nThe closure of Sde Avraham farm will allow the Company to better leverage its fully licensed import-export supply chain and focus on importing premium and ultra-premium products from its subsidiaries in Canada and other leading Canadian suppliers. IM Cannabis will continue to support the cultivation sector in Israel by concentrating on purchasing from third-party cultivation facilities in Israel that have advanced technological greenhouses and will rely on existing inventory of proprietary genetics.\nThe Company also completed an amendment to increase the availability under the existing revolving credit facility with a private Canadian creditor that is maintained by Trichome JWC Acquisition Corp. (\"TJAC\") to $15 million (the \"Revolving Credit Facility\") to better support the working capital needs associated with its global supply chain and the growing demand for its premium Canadian-grown cannabis. Amounts drawn under the Revolving Credit Facility are margined against eligible accounts receivable and inventory and are secured against the assets of the Company's Canadian subsidiaries. The term of the Revolving Credit Facility was extended to May 2023. For more information on the Revolving Credit Fac...