Business
IM Cannabis to Acquire MYM Nutraceuticals and Its Licensed Producer Subsidiary, Highland Grow
Highland Grow is currently profitable on an EBITDA basis and the Transaction is expected to be immediately accretive to IMC Highland Grow is expected to
About this update from Im Cannabis Corp.
[{"type":"text","content":"\nHighland Grow is currently profitable on an EBITDA basis and the Transaction is expected to be immediately accretive to IMC\n\nHighland Grow is expected to generate net revenue of $29 million and $38 million and gross margins of 34% to 36% in 2021 and 2022, respectively[1]\n\nPurchase price implies 2.3x net revenue and 6.7x EBITDA in 2022 with synergies\n\nMYM shareholders will receive 0.022 IMC shares for each MYM share, representing a price of $0.195 based on respective closing prices on March 31, 2021\n\nSuper premium positioning, complementary brands, enhanced distribution and export opportunities to Israel and European markets\n\nToronto, Ontario and Vancouver, British Columbia and Glil Yam, Israel--(Newsfile Corp. - April 1, 2021) - IM Cannabis Corp. (NASDAQ: IMCC) (CSE: IMCC) (the \"Company\" or \"IMC\"), a multi-country operator (\"MCO\") in the medical and adult-use recreational cannabis sector with operations in Israel, Germany and Canada is pleased to announce that it has entered into a definitive agreement (the \"Arrangement Agreement\") to acquire MYM Nutraceuticals Inc. (\"MYM\") and its licensed producer subsidiary Highland Grow Inc. (\"Highland Grow\"), pursuant to a plan of arrangement to be completed under the Business Corporations Act (British Columbia) (the \"Transaction\"). The Transaction reinforces the Company's strategy as a leading global premium cannabis producer and purveyor. Following completion of the Transaction, expected to occur before the end of the second half of 2021, IMC will continue to operate under the IM Cannabis Corp. name with its common shares trading on the NASDAQ Capital Market and Canadian Securities Exchange under the ticker symbol \"IMCC\".\nAcquiring MYM and its subsidiary Highland Grow Inc. expands IMC's focus on premium and super premium branded cannabis products in Canada, and upon closing consumers will have a broader choice of offerings and brands in these categories. With coast-to-coast distribution, including a strong leadership position in eastern Canada, Highland Grow enhances IMC's distribution capabilities, fast tracks the entrance of JWC (expected soon to be relaunched as \"Wagners\") into new markets, and is expected to drive significant incremental revenue and EBITDA growth. With the demand for premium-indoor grown cannabis increasing internationally, IMC's medical...