Financial Data and Key Metrics Changes - Revenue for Q2 2024 increased by 11.7% to $14.8 million compared to $13.2 million in Q2 2023, driven by a 129% growth in Germany [10][11] - Average selling price per gram of dried flower rose by 21% to $6.09 in Q2 2024 [10][11] - Gross profit decreased by 75.6% to $0.8 million in Q2 2024, primarily due to inventory clearance and slow-moving stock accruals [12][13] - Non-IFRS adjusted EBITDA loss widened to $2.3 million in Q2 2024 from a loss of $0.5 million in Q2 2023 [13] Business Line Data and Key Metrics Changes - Total dried flower sold in Q2 2024 was approximately 2,333 kilograms, up from 2,128 kilograms in Q2 2023 [11] - The Israeli business is focusing on premium and ultra-premium markets, with new product launches aimed at enhancing market presence [8][9] Market Data and Key Metrics Changes - The German cannabis market is projected to reach approximately $1.5 billion in total sales in 2024 and grow to about $3.7 billion by 2027 [5] - IM Cannabis Corp. reported a 200% increase in sales in Germany in Q2 2024 compared to Q1 2024, reflecting the impact of legalization [6][16] Company Strategy and Development Direction - The company is reallocating resources to support growth in the German market, focusing on building a stable supply chain and enhancing team capabilities [7][9] - The strategy includes launching premium brands in Germany and leveraging existing supply channels from Israel [18][20] Management's Comments on Operating Environment and Future Outlook - Management highlighted the significant growth potential in the German market following legalization, emphasizing the need for adequate supply to meet demand [4][16] - The company is optimistic about its ability to navigate the competitive landscape in Germany, citing established relationships with pharmacies and a strong brand presence [26][27] Other Important Information - The planned reverse merger with Kadimastem was terminated, allowing the company to focus on its cannabis operations [9] - Cash and cash equivalents decreased to $0.7 million as of June 30, 2024, down from $1.8 million at the end of 2023 [14] Q&A Session Summary Question: Supply sourcing for the German market - Management acknowledged supply as a key issue in Germany and confirmed plans to increase orders and introduce new suppliers [17][18] Question: Impact of supply from Israel on the Israeli market - The company clarified that the supply sent from Israel would not detract from opportunities in Israel, as they focus on different market segments [19][20] Question: Infrastructure and cash outlays for German market growth - Management expressed confidence in their ability to support operations and cash flow for growth in the German market [22][23] Question: Key factors for success in the German market - Management attributed success to established market presence, strong relationships with pharmacies, and increased supply following legalization [25][26] Question: Future gross margin outlook - Management indicated that current gross margin reductions were due to inventory clearance, but they expect improvements in future quarters [28][31]

Financial Performance - IM Cannabis Corp. reported a quarterly loss of $0.17 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.84, and an improvement from a loss of $1.14 per share a year ago, representing an earnings surprise of 79.76% [1] - The company posted revenues of $10.78 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 12.07%, and up from $9.83 million in the same quarter last year [2] Stock Performance - IM Cannabis shares have increased approximately 28.9% since the beginning of the year, outperforming the S&P 500's gain of 13.9% [3] - The current Zacks Rank for IM Cannabis is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.81 on revenues of $10.11 million, and for the current fiscal year, it is -$4.32 on revenues of $38.99 million [7] - The estimate revisions trend for IM Cannabis is mixed, and changes in earnings expectations may occur following the recent earnings report [6] Industry Context - The Medical - Products industry, to which IM Cannabis belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - Revenues for the six months ended June 30, 2024, increased to CAD 26,813 thousand, up from CAD 25,736 thousand for the same period in 2023, reflecting a growth of 4.2%[8] - Gross profit before fair value adjustments decreased to CAD 2,648 thousand for the six months ended June 30, 2024, compared to CAD 6,977 thousand in the prior year, a decline of 62.0%[8] - Operating loss increased to CAD 8,499 thousand for the six months ended June 30, 2024, compared to CAD 5,368 thousand in the same period of 2023, an increase of 58.8%[8] - Net loss for the six months ended June 30, 2024, was CAD 9,476 thousand, compared to a net loss of CAD 4,572 thousand for the same period in 2023, indicating an increase of 107.5%[8] - Total comprehensive loss for the six months ended June 30, 2024, was CAD 7,918 thousand, compared to CAD 4,731 thousand for the same period in 2023, an increase of 67.5%[8] - The net loss attributable to equity holders for the six months ended June 30, 2024, was CAD 8,652,000, compared to CAD 4,059,000 for the same period in 2023, representing an increase of 113%[9] - Basic and diluted loss per share for the six months ended June 30, 2024, was CAD 0.65, compared to CAD 0.33 for the same period in 2023, reflecting a 97% increase[9] Assets and Liabilities - Total assets decreased from CAD 48,813 thousand as of December 31, 2023, to CAD 40,216 thousand as of June 30, 2024, representing a decline of approximately 17.7%[2] - Current liabilities rose to CAD 33,403 thousand as of June 30, 2024, from CAD 32,808 thousand as of December 31, 2023, an increase of 1.8%[5] - Total liabilities decreased slightly from CAD 35,113 thousand as of December 31, 2023, to CAD 34,735 thousand as of June 30, 2024, a decrease of 1.1%[5] - The total equity as of June 30, 2024, was CAD 5,481,000, down from CAD 23,797,000 as of January 1, 2023, indicating a decline in equity[11] Cash Flow - Cash provided by operating activities for the six months ended June 30, 2024, was CAD 368,000, a significant improvement from a cash used of CAD 13,212,000 in the same period of 2023[14] - Net cash used in investing activities for the six months ended June 30, 2024, was CAD 398,000, compared to CAD 553,000 for the same period in 2023[16] - Net cash provided by financing activities for the six months ended June 30, 2024, was CAD 643,000, a decrease from CAD 10,677,000 in the same period of 2023[16] - The cash and cash equivalents at the end of the period on June 30, 2024, were CAD 700,000, down from CAD 1,321,000 at the end of June 30, 2023[16] Inventory and Cost of Goods Sold - As of June 30, 2024, total inventory amounted to $5,719 thousand, a decrease from $9,976 thousand as of December 31, 2023, reflecting a reduction of approximately 42.7%[97][98] - During the six months ended June 30, 2024, the cost of goods sold for cannabis products was $22,586 thousand, compared to $17,716 thousand for the same period in 2023, representing an increase of approximately 27.6%[98] Corporate Actions and Strategies - The Company exited its operations in Canada, with the Canadian entities sold for a purchase price of $3,375, resulting in no proceeds to the Company[40] - The Company recorded restructuring expenses of $4,383 related to the closure of the "Sde Avraham" cultivation facility in Israel[45] - A cost-saving plan was approved in 2023, focusing on reducing payroll, headcount, and operational efficiencies to save costs in 2024[29] - The Company announced a strategy plan in Israel to strengthen core activities and drive efficiencies, including workforce reductions completed by mid-2023[46] - A proposed business combination with Kadimastem Ltd. will result in a reverse merger, changing the Company's focus from medical cannabis to biotechnology[47] - The Legacy Business will be available for potential sale for up to 12 months from the closing of the proposed transaction, with proceeds used to settle debts[51] Financing and Debt - IM Cannabis Corp. signed a loan agreement with Kadimastem for up to US$650,000, with a 9% annual interest rate, to be funded in two installments[53][54] - The company announced the termination of the loan agreement with Kadimastem, requiring repayment of US$300,000 plus 9% interest in three installments by July 31, 2024[55] - A short-term loan agreement was entered into on July 1, 2024, for $1,113,000 with an annual interest rate of 12%[127] - The company closed a private placement of secured convertible debentures for aggregate proceeds of $2,092, convertible at $0.85 per share[75] Compliance and Regulatory Matters - Nasdaq notified the company that its share price fell below US$1.00 for 30 consecutive business days, requiring compliance by January 16, 2024[56] - The company received a 180-day extension from Nasdaq until July 29, 2024, to regain compliance with the minimum share price requirement[57] - IM Cannabis Corp. was assessed excise tax totaling CAD 199, with additional penalties, for the years 2020 and 2021, but objections were filed[59][60] Shareholder Information - As of June 30, 2024, the company had 13,394,136 common shares issued and outstanding, unchanged from December 31, 2023[106][112] - The company consolidated its common shares on July 12, 2024, reducing the total from 13,394,136 to 2,232,357 shares[128] - On July 26, 2024, the company received notice from Nasdaq confirming compliance with the minimum bid price requirement[129]

Core Insights - IM Cannabis Corp. will report its operational and financial results for Q2 2024 on August 14, 2024, before market opens [1] - A Zoom web conference will be held on the same day at 9:00 am ET to discuss the results, followed by a Q&A session for investors [2] Company Overview - IM Cannabis Corp. is a leading international cannabis company focused on providing premium cannabis products to medical patients in Israel and Germany, which are significant medical cannabis markets [3] - The company aims for sustainable and profitable growth by leveraging a data-driven approach and a globally sourced product supply chain [3] - IM Cannabis is committed to responsible growth and compliance with strict regulatory environments to enhance its commercial and brand power [3] Operations - In Israel, the company operates through Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, utilizing proprietary data and patient insights [4] - The company also runs medical cannabis retail pharmacies, online platforms, distribution centers, and logistical hubs in Israel to ensure safe delivery and quality control of its products [4] - In Germany, IM Cannabis operates through Adjupharm GmbH, distributing cannabis to pharmacies for medical cannabis patients [4]

This press release contains forward-looking information or forward-looking statements under applicable Canadian and U.S. securities laws (collectively, "forward-looking statements"). All information that addresses activities or developments that we expect to occur in the future are forward-looking statements. Forwardlooking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an e ...

After giving effect to the Consolidation, the Common Shares were reduced from 13,394,136 to 2,232,357 Common Shares. No fractional Common Shares were issued in connection with the Consolidation. Instead, all fractional Common Shares equal to or greater than one-half resulting from the Consolidation were rounded to the next whole number, otherwise, the fractional Common Share were cancelled. The exercise price and/or conversion price and number of Common Shares issuable under any of the Company's outstanding ...

IMC Germany's accelerated growth potential leans strongly on its supply strategy through its ability to partner with cannabis growers for EU-GMP certification, bolstering the company's supply chain with exclusive product TORONTO and GLIL YAM, Israel, June 5, 2024 /PRNewswire/ -- IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) (the "Company," "IMCannabis," or "IMC"), a leading medical cannabis company with operations in Israel and Germany, is experiencing accelerated growth in Germany after the April 1st partia ...

Core Viewpoint - IM Cannabis Corp. is focusing on cost management and financial restructuring to support growth in Germany following recent legalization, having reduced its annual G&A costs by 49% in 2023 and planning to lower financial costs through debt renegotiation [1][3]. Financial Developments - The company closed a non-brokered private placement of secured convertible debentures, raising a total of $2,091,977, aimed at preserving cash for growth initiatives in Germany [2]. - The debentures will mature on May 26, 2025, and will not incur interest unless there is a default, with a conversion price set at $0.85 per share [2]. Insider Transactions - Oren Shuster, CEO of IM Cannabis, subscribed for $237,214 of debentures in the offering, which is classified as a related party transaction [4]. - The company intends to rely on exemptions from formal valuation and minority shareholder approval requirements due to the transaction's value being below 25% of the company's market capitalization [4]. Shareholder Information - Following the acquisition of the debenture, Oren Shuster's total holdings include 1,872,870 shares, 856,704 warrants, 131,250 stock options, and the debenture, representing approximately 1.8% of the company's issued shares on a non-diluted basis and 23.44% on a partially diluted basis [6]. Company Overview - IM Cannabis Corp. is a leading medical cannabis company operating in Israel and Germany, focusing on premium cannabis products for medical patients [10]. - The company has exited operations in Canada to concentrate resources on achieving sustainable growth in its highest value markets, Israel and Germany [10][11].

Company Overview - IM Cannabis Corp. (IMC) is a leading medical cannabis company with operations in Israel and Germany, focusing on premium cannabis products for medical patients [3] - The company has exited operations in Canada to concentrate resources on sustainable growth in its highest value markets, Israel and Germany [3] Recent Developments - Following the legalization of cannabis in Germany on April 1, 2024, IMC has experienced accelerated growth, which is expected to continue [2] - The company has terminated a preliminary term sheet with Kadimastem Ltd, resulting in a repayment of a loan totaling $300,000 with 9% annual interest, to be completed by July 31, 2024 [2] Market Position - IMC operates a transnational ecosystem that includes partnerships with Focus Medical Herbs Ltd. in Israel and Adjupharm GmbH in Germany, facilitating the distribution of cannabis to medical patients [4] - The company aims to amplify its commercial and brand power to become a global player in the high-quality cannabis market [3]

IM Cannabis Corp. (IMCC) came out with a quarterly loss of $0.16 per share in line with the Zacks Consensus Estimate. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post a loss of $0.16 per share when it actually produced a loss of $0.18, delivering a surprise of -12.50%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.IM Cannabis, which belongs to the Z ...