Core Points - IM Cannabis Corp. has agreed to reduce the exercise price of its November 2024 Warrants from C$4.32 to C$3.43 and extend their expiration date from November 12, 2026, to July 31, 2030 [1] - The company has filed a resale registration statement with the SEC for an aggregate of 4,982,517 common shares, which includes shares from various warrants and options [3][4] - The transaction involving the reduction and extension of the warrants was approved by the independent members of the board of directors [8] Company Overview - IM Cannabis Corp. is a leading medical cannabis company operating in Israel and Germany, focusing on providing premium cannabis products to medical patients [22] - The company leverages a data-driven approach and a globally sourced product supply chain to enhance its commercial and brand power [22] - IM Cannabis operates through subsidiaries in Israel, importing and distributing cannabis, and also runs medical cannabis retail pharmacies and distribution centers [23]

Core Insights - IM Cannabis Corp. reported strong profit and margin growth in Q2 2025 despite a revenue decline due to external challenges such as the ongoing war in Israel and supply chain delays [1][2][12] Financial Highlights - Revenue for Q2 2025 was CAD 12.7 million, a 14% decrease from CAD 14.8 million in Q2 2024, primarily due to a CAD 5.3 million decline in Israel, partially offset by CAD 3.3 million growth in Germany [12] - Gross profit increased by 306% to CAD 3.4 million compared to CAD 0.8 million in Q2 2024, with gross margin rising to 27% from 6% [11][12] - Non-IFRS Adjusted EBITDA showed a profit of CAD 0.1 million in Q2 2025, a 105% improvement from a loss of CAD 2.3 million in Q2 2024 [2][12] - Operating expenses remained stable with a slight increase of 2% to CAD 3.8 million compared to CAD 3.7 million in Q2 2024 [12] Management Commentary - The CEO highlighted the challenges posed by the war and supply chain issues but expressed optimism about the company's profitability and margin growth, indicating a strong long-term strategy [2] - The CFO emphasized disciplined cost management and operational efficiency as key factors in achieving margin expansion despite the revenue decline [2] Company Overview - IM Cannabis Corp. operates in the medical cannabis markets of Israel and Germany, leveraging a data-driven approach and a globally sourced product supply chain [8][9] - The company aims to amplify its commercial and brand power while adhering to strict regulatory environments [8]

Company Overview - IM Cannabis Corp. (NASDAQ: IMCC) is a leading medical cannabis company operating in Israel and Germany, focusing on premium cannabis products for medical patients [2][3] - The company aims for sustainable and profitable growth in its key markets, leveraging a data-driven approach and a globally sourced product supply chain [2] Operational Highlights - The IMC ecosystem in Israel includes subsidiaries that import and distribute cannabis, operate medical cannabis retail pharmacies, and manage online platforms and distribution centers [3] - In Germany, IMC operates through Adjupharm GmbH, distributing cannabis to pharmacies for medical patients [3] Upcoming Financial Reporting - IM Cannabis Corp. will report its operational and financial results for the second quarter of 2025 on August 12, 2025, before the market opens [1]

Core Points - IM Cannabis Corp. has successfully closed a private placement offering, raising gross proceeds of approximately C$5,622,522 (around US$4,100,000) by issuing 2,050,000 units at a price of C$2.7427 per unit [1] - Each unit consists of one common share or one pre-funded common share purchase warrant and one common share purchase warrant, with the latter allowing the purchase of shares at C$3.43 for a period of 60 months [2] - The proceeds from the offering will be used for general working capital, repayment of existing debt, and other corporate purposes [6] Company Overview - IM Cannabis Corp. is a leading medical cannabis company operating in Israel and Germany, focusing on providing premium cannabis products to medical patients [7] - The company utilizes a data-driven approach and a globally sourced product supply chain to enhance its operations and compliance with regulatory standards [7] - In Israel, the company imports and distributes cannabis, operates medical cannabis retail pharmacies, and manages logistical hubs to ensure quality control [8] - In Germany, IM Cannabis operates through Adjupharm GmbH, distributing cannabis to pharmacies for medical patients [9]

Core Viewpoint - IM Cannabis Corp. has filed a shelf registration statement with the SEC, allowing the company to offer and sell up to $50 million of its securities, including common shares, warrants, and units, depending on market conditions and capital needs [1][2]. Company Overview - IM Cannabis Corp. is a leading medical cannabis company operating in Israel and Germany, focusing on providing premium cannabis products to medical patients in these significant markets [5]. - The company aims for sustainable and profitable growth by leveraging a data-driven approach and a globally sourced product supply chain [5]. Operations - In Israel, IM Cannabis operates through subsidiaries that import and distribute cannabis, manage medical cannabis retail pharmacies, and utilize online platforms for distribution [6]. - In Germany, the company distributes cannabis to pharmacies through its subsidiary, Adjupharm GmbH, catering to medical cannabis patients [6]. Shelf Registration Details - The shelf registration allows the company to sell securities on a registered basis, with specific terms and prices to be determined at the time of offering [2][3]. - The registration does not obligate the company to sell any specific amount of securities, as future offerings will depend on market conditions and the company's discretion [3].

Group 1 - IM Cannabis Corp. will be delisted from the CSE at market close on June 2, 2025 [1][2][3] - The company will continue to trade on Nasdaq after the delisting [1][2]

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved a net profit with an 87% improvement in gross margin compared to Q1 2024 [6] - Adjusted EBITDA in Q1 2025 resulted in a profit of $600,000, an improvement of almost $3,000,000 from an adjusted EBITDA loss of $2,200,000 in Q1 2024 [10] - Revenues for Q1 2025 were $12,500,000, a 4% increase from $12,100,000 in Q1 2024 [10] - Gross profit for Q1 2025 was $3,400,000, a 94% increase from $1,800,000 in Q1 2024 [12] - Net profit for Q1 2025 was approximately $200,000, compared to a loss of $6,000,000 in Q1 2024, marking a $6,200,000 improvement [13] Business Line Data and Key Metrics Changes - The German business grew 569% compared to Q1 2024, significantly offsetting a 66% decline in Israeli revenue [7][10] - Germany's share of total revenue in Q1 2025 increased to 62%, reflecting favorable market conditions and growing demand [11] Market Data and Key Metrics Changes - The company launched 12 new strains in Germany, contributing approximately €3,000,000 or 39% of cannabis flower sales in the region [6] - The decline in Israeli revenue was attributed to the cancellation of the Orenin deal, resulting in a revenue decrease of approximately $3,500,000 compared to Q1 2024 [11] Company Strategy and Development Direction - The company is focusing on execution and resource allocation to areas with the highest return on investment (ROI) [6] - Cost-cutting measures from shifting production facilities in Israel are positively impacting financial results, leading to increased gross margins [8] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the internal progress made strategically and operationally, which is now reflected in financial results [15] - The company aims to continue executing its strategy to maintain profitability [15] Other Important Information - Total assets as of March 31, 2025, were $44,934,000, an increase of 15% from $39,188,000 as of December 31, 2024 [13] - Total liabilities increased to $41,761,000, a 16% rise from $36,042,000 as of December 31, 2024 [14] Q&A Session Summary Question: Importance of the upcoming meeting regarding the 25% ownership of Focus - Management indicated that the approval is crucial for regulatory compliance and to facilitate the transition of long-term loans to equity, which is necessary for tax purposes [19][20]

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved a net profit with an 87% improvement in gross margin compared to Q1 2024 [5] - Adjusted EBITDA in Q1 2025 resulted in a profit of $600,000, an improvement of almost $3,000,000 from an adjusted EBITDA loss of $2,200,000 in Q1 2024 [8] - Revenues for Q1 2025 were $12,500,000, a 4% increase from $12,100,000 in Q1 2024, primarily driven by growth in Germany [8][10] - Gross profit for Q1 2025 was $3,400,000, a 94% increase from $1,800,000 in Q1 2024 [10] - Net profit for Q1 2025 was approximately $200,000, compared to a loss of $6,000,000 in Q1 2024, marking a $6,200,000 improvement [11] Business Line Data and Key Metrics Changes - The German business grew by 569% compared to Q1 2024, significantly offsetting a 66% revenue decline in Israel [6][8] - The company launched 12 new strains in Germany, contributing approximately €3,000,000 or 39% of cannabis flower sales in that market [5] - The decline in Israeli revenue was attributed to the cancellation of the Orenin deal, resulting in a decrease of approximately $3,500,000 compared to Q1 2024 [9] Market Data and Key Metrics Changes - Germany's share of total revenue in Q1 2025 increased to 62%, reflecting favorable market conditions and growing demand [9] - The cost of revenue decreased by 12% to $9,100,000 in Q1 2025, down from $10,300,000 in Q1 2024 [9] Company Strategy and Development Direction - The company is focusing on execution and resource allocation to areas with the highest return on investment (ROI) [5] - The strategic shift towards the German market is evident, with significant growth in that region while managing operational efficiencies [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's efforts and noted that the efficiencies and integration from the past two years are starting to reflect in financial results [6][11] - The company aims to continue executing its strategy and maintain profitability moving forward [7] Other Important Information - Total assets as of March 31, 2025, were $44,934,000, an increase of 15% from $39,188,000 as of December 31, 2024 [11] - Total liabilities increased by 16% to $41,761,000 as of March 31, 2025, compared to $36,042,000 as of December 31, 2024 [12] Q&A Session Summary Question: Importance of the upcoming meeting for accepting 25% ownership of Focus - Management indicated that this is a long process on the regulatory side and is crucial for clearing balances between companies and moving long-term loans to equity [17][18] - The need to hold 100% of the Focus shares is based on tax regulations to avoid issues with tax authorities [19]

Core Points - IM Cannabis Corp. has received a notification from Nasdaq indicating non-compliance with Listing Rule 5550(b)(1) due to insufficient stockholders' equity of US$2,184,722 as of December 31, 2024, below the required US$2.5 million [2][3] - The company has 45 days to submit a compliance plan to regain Nasdaq listing compliance, with a potential extension of up to 180 days if accepted [4][5] - The company is pursuing the acquisition of the remaining 26% interest in Focus Medical Herbs Ltd. from Ewave Group Ltd., which involves related parties [7][16] - The purchase price for the remaining interest in Focus has been determined at NIS 818,740, to be settled through the issuance of common shares [8][17] - Approval for the Focus Transaction will be sought from disinterested shareholders at the upcoming annual general and special meeting scheduled for May 23, 2025 [9][18] Company Overview - IM Cannabis Corp. operates in the medical cannabis sector, providing premium products to patients in Israel and Germany, leveraging a data-driven approach and a global supply chain [18][19] - The company has a comprehensive ecosystem in Israel, including importation, distribution, retail pharmacies, and logistical hubs, while in Germany, it operates through Adjupharm GmbH [19]

Financial Data and Key Metrics Changes - The company reported a total revenue of $54 million for 2024, an increase of $5.2 million or 11% compared to $48.8 million in 2023 [25] - Adjusted EBITDA in Q4 2024 was a profit of $0.5 million, a significant improvement of almost $5 million from a loss of $4.3 million in Q4 2023 [13][35] - The net loss for 2024 was $11.8 million compared to $10.2 million in 2023, while the net loss in Q4 2024 was $1.2 million compared to $3.5 million in Q4 2023 [35][36] Business Line Data and Key Metrics Changes - Sales in Germany increased by over 183% in 2024, reaching $15.5 million, with Germany accounting for 40% of total revenue in the second half of 2024 compared to 11% in all of 2023 [15][25] - In Israel, revenue decreased by $4.8 million net, primarily due to the cancellation of the Oranim deal, which resulted in a revenue decrease of approximately $8.5 million compared to 2023 [25][27] - The company launched or relaunched 27 strains across six brands in Israel in 2024, maintaining top-line sales despite the challenges [17] Market Data and Key Metrics Changes - The German market has shown extraordinary growth since the partial legalization in April 2024, with a significant increase in sales velocity [8][15] - The company added three new suppliers and launched 16 new strains in 2024, indicating a strong operational focus on the German market [12][14] Company Strategy and Development Direction - The company focused on full integration and active cost management to drive efficiencies, reducing overall operating expenses by $4 million or 17% in 2024 [11] - The strategic shift towards the German market has proven effective, with plans to continue building a strong supply chain to support growth in 2025 [10][20] - The company aims to maintain efficiency while investing in growth, particularly in Germany, while not expecting significant growth in the Israeli market [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements made in 2024, setting a solid foundation for growth in 2025, with Q1 expected to be the best quarter in sales to date in Germany [19][40] - The competitive landscape in Germany is dynamic, with expectations of price compression, but management believes margins will not decline significantly [50][52] Other Important Information - The company cleared out slow-moving non-premium stock, impacting cost of sales and gross margin, but does not anticipate similar write-offs in 2025 [18] - Total operating expenses for 2024 were $18.7 million, down from $22.6 million in 2023, reflecting improved operational efficiency [34] Q&A Session Summary Question: Dynamics affecting growth in Germany in Q4 - Management acknowledged delays in Q4 but indicated that Q1 looks promising, attributing the slowdown to supply chain building processes [46] Question: Changes in competitive dynamics in Germany - Management noted that the German market is competitive, with ongoing price compression, but does not foresee significant changes in leading competitors [48][50] Question: Margin profile expectations amid price compression - Management expects margins to remain stable or improve, despite the challenges faced in 2024 due to inventory issues [52][54] Question: Stability of the Israeli market - Management does not foresee significant growth in the Israeli market, focusing resources primarily on the German market [57]