Business
IM Cannabis Provides Update on German Operations and Financial Outlook
TORONTO, ON, BAD OLDESLOE, GERMANY, and GLIL YAM, ISRAEL / ACCESSWIRE / July 23, 2021 / IM Cannabis Corp. ("IMC" or the "Company") (CSE:IMCC) (NASDAQ:IMCC), a
About this update from Im Cannabis Corp.
TORONTO, ON, BAD OLDESLOE, GERMANY, and GLIL YAM, ISRAEL / ACCESSWIRE / July 23, 2021 / IM Cannabis Corp. ("IMC" or the "Company") (CSE:IMCC) (NASDAQ:IMCC), a multi-country operator ("MCO") in the medical and adult-use recreational cannabis sector with operations in Israel, Germany and Canada, announces the completion of a new, state-of-the-art logistics centre in Germany (the "Logistics Centre") that will allow Adjupharm GmbH ("Adjupharm"), the Company's fully licensed EU-GMP subsidiary, to internally manage all aspects of its supply chain including, uniquely, the repackaging of bulk cannabis. The Company expects that the Logistics Centre will strongly augment Adjupharm's capabilities as a focal point for IMC's European strategy.Since being acquired by IMC, Adjupharm has upgraded its production and storage capacities to meet the increase in medical cannabis volumes expected as the Company and Adjupharm enter new supply agreements. With the completion of the Logistics Centre, IMC has now doubled its footprint in Germany to approximately 80,000 square feet, upgraded its production facilities with state-of-the-art technology and increased its storage capacity to seven tons of cannabis. With the Logistics Centre in operation, new sources of supply now secured extending its portfolio to include premium products, some of them exclusive, and a wide network of distribution partners, the Company expects to fortify and grow its presence in the German market.Preliminary Q2 Results and Q3 OutlookIMC expects its net revenue in the second quarter of 2021 to be in the range of $11 million to $12 million, an approximate 30% sequential increase from the first quarter. As compared to the previously announced financial outlook provided on April 23, 2021, revenue was impacted by delays in contracted shipments to Germany that accounted for nearly the entire variance between actual and estimated revenue in the quarter. These delays were due to lack of product availability from Adjupharm's primary European supply partner. Corrective steps have now been taken during the quarter to diversify supply to Germany, including signing of additional agreements to import cannabis from Canadian licensed producers.IMC expects significant revenue growth in the third quarter of 2021 based on the following considerations:Increased medical cannabis sales by Focus Medical in Israel through the ...