Gross Profit Increased 37% from Q1 2021 as Operational
Efficiencies from Integration Take Hold; Company Expects to Achieve
Positive Adjusted EBITDA in Q2 2022
TORONTO and GLIL YAM, Israel,
May 12,
2022 /PRNewswire/ -- IM Cannabis Corp. (the
"Company", "IM Cannabis", or "IMC") (CSE:
IMCC) (NASDAQ: IMCC), a leading medical and adult-use recreational
cannabis company with operations in Israel, Canada, and Germany, provided financial results for the
three months ended March 31, 2022.
All amounts are reported in Canadian dollars unless otherwise
stated.
Q1 2022 Highlights
- Revenues increased 169% year-over-year to $23.6 million
- Gross profit, before fair value adjustments, was $6.4 million, representing an increase of 37%
from Q1 2021 and 67% sequentially
- Completed four(1) strategic acquisitions in
Israel, including the country's
largest retail and online pharmacy business and a trade and
distribution center with an IMC-GDP license, and began centralizing
operations of its newly acquired assets
- The Company's WAGNERS brand sold out in Israel in three weeks, reflecting strong
demand for the brand and premium indoor-grown cannabis imported
from its Canadian cultivation subsidiary.
Management Commentary
"We continue to progress well on our path to profitability and
achieved another quarter of record revenues, which grew 169%
year-over-year in the first quarter," said Oren Shuster, Chief Executive Officer of IMC.
"We execute key initiatives that drive margin expansion within each
of our market segments and across our operating footprint, which
reflect the benefits of integrating our global model. In Israel, we
work to consolidate four of the country's leading pharmacies and
centralize our distribution and customer support to potentially
create significant cost savings while strengthening our brand
presence. We also increasingly leverage yield from our Canadian
cultivation facilities for our products imported to and sold in
Israel, which exhibit a gross
margin profile that is nearly double that of products sourced from
suppliers."
"In Canada, our WAGNERS and Highland Grow brands have achieved
market share leadership due to our relentless focus on delivering
upon consumer expectations, with each brand holding a top three
ranking in Ontario within their
price segments. As we increase internal cultivation toward full
capacity, we also focus on key operational initiatives to improve
yield and reduce volume-based costs. These initiatives will help us
reach positive Adjusted EBITDA, which we expect to achieve on a run
rate basis in the second quarter of 2022, positioning us to be cash
flow positive on a run rate basis in the following quarter."
"Given the unfolding environment, we also continue to lay a
strong foundation in Germany,
where we have established a positive reputation among the
healthcare community of the largest medical cannabis market in
Europe and will launch our WAGNERS
brand this year. As the industry continues to evolve globally, we
are strongly positioned to be a leader in the premium cannabis
industry and generate long-term value for our shareholders,"
concluded Shuster.
Preliminary Q2 2022 Financial Results
The Company continues to experience meaningful growth across its
global platform, primarily in Israel and Canada, reflecting the continued execution of
the Company's strategy, its accelerating international brand
presence, its focus on cultivating premium flower, and its global
distribution and supply chain model. On a preliminary, unaudited
basis, IMC expects Q2 2022 revenue and gross margin to increase
sequentially.
Operational Highlights
- 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") decided to close
the Sde Avraham cultivation farm in Israel that it owns and operates. Focus
Medical has an exclusive commercial agreement with IMC Holdings
Ltd. ("IMC Holdings") 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.
- Completed the strategic acquisition of 51% of the rights in
Oranim Pharm Partnership ("Oranim Pharm"), one of the
largest pharmacies selling medical cannabis in Israel and the largest pharmacy selling
medical cannabis in the Jerusalem
area. The acquisition was completed following receipt of all
requisite approvals, including from the Israeli Medical Cannabis
Agency.
- Completed the acquisition of Revoly Trading and Marketing Ltd.,
dba Vironna Pharm ("Vironna"). Vironna ranks among the top
10 single cannabis dispensing points in Israel and is one of the largest pharmacies in
Israel serving the rapidly growing
Arab consumer segment of the medical cannabis market.
- Completed the acquisition of R.A. Yarok Pharm Ltd. ("Pharm
Yarok"), a leading medical cannabis pharmacy located in central
Israel, and Rosen High Way Ltd. ("Rosen High Way"), a trade
and distribution center with an IMC-GDP license that provides
medical cannabis storage, distribution services and logistics
solutions for cannabis companies and pharmacies in Israel.
- Acquired an IMC-GDP license for distribution of medical
cannabis from Panaxia Pharmaceutical Industries Israel Ltd. and
Panaxia Logistics Ltd., part of the Panaxia Labs Israel, Ltd. group
of companies (collectively, "Panaxia"). As part of the
transaction, IMC acquired Panaxia's trading house and in-house
pharmacy operation, including Israel's largest retail and online
pharmacy business(2).
- Focus Medical successfully imported approximately 399 kilograms
of premium, indoor-grown, Canadian dried cannabis following
approval from the Ministry of Agriculture to import to the Israeli
market in Q4 2021.
Q1 2022 Financial Results
- Revenues were $23.6 million in Q1
2022, representing an increase of 169% from Q1 2021 and 18%
sequentially. Total dried flower sold for Q1 2022 was 3,035kg at an
average selling price of $6.23 per
gram, compared to 1,185kg for the same period in 2021 at an average
selling price of $4.94 per gram,
derived mainly from the higher average selling price per gram the
Company recognized through its acquired pharmacies in Israel.
- Gross profit, before fair value adjustments, was $6.4 million in Q1 2022 compared to $4.6 million in Q1 2021.
- General and administrative expenses were $9.0 million in Q1 2022 compared to $4.9 million in Q1 2021. The increase in the
general and administrative expense is mainly attributable to the
growing corporate activities in Israel and Canada following the Company's acquisitions in
2021.
- Sales and marketing expenses were $3.7
million in Q1 2022 compared to $1.2
million in Q1 2021. The increase in the sales and marketing
expenses was due mainly to the Company's increased marketing
efforts in Israel, brand launch in
Germany, and increased
distribution expenses relating to the growth in sales and
consolidation of sales and marketing expenses of entities acquired
in 2021.
- Adjusted EBITDA(2) loss was $(4.5) million in Q1 2022 compared to
$(1.0) million in Q1 2021.
- Net loss was $10.7 million in Q1
2022 compared to net income of $4.7
million in Q1 2021. Basic and diluted loss per share in Q1
2022 of $0.14 and $0.17, respectively, compared to basic and
diluted income (loss) per share in Q1 2021 of $0.11 and ($0.06),
respectively.
- Cash and cash equivalents totaled $10.3
million at March 31, 2022,
compared to $13.9 million at
December 31, 2021.
The complete audited consolidated financial statements of the
Company and related management's discussion and analysis for the
three months ended March 31, 2022 and
2021, will be available under the Company's SEDAR profile at
www.sedar.com.
Q1 2022 Conference Call
Date: Thursday, May 12, 2022
Time: 5:00 p.m. Eastern time
U.S./Canada Dial-in: 1-844-825-9789
Israel Dial-in: 1-80-9213284
Germany Dial-in: 0-800-5895393
International Dial-in: 1-412-317-5180
Conference ID: 10167199
Webcast: IMCC Q1 2022 Webcast
Please dial in at least 10 minutes before the start of the call
to ensure timely participation.
A playback of the call will be available through Thursday, June 9, 2022. To listen, call
1-844-512-2921 within the United
States or Canada or
1-412-317-6671 when calling internationally and enter replay pin
number 10167199. A recording of the conference call will also be
available on the events & presentations section of the IM
Cannabis investor relations website linked here.
About IM Cannabis Corp.
IM Cannabis (NASDAQ: IMCC) (CSE: IMCC) is a leading
international cannabis company providing premium products to
medical patients and adult-use recreational consumers. IM Cannabis
is one of the very few companies with operations in Israel, Germany, and Canada, the three largest federally legal
markets. The ecosystem created through its international operations
leverages the Company's unique data-driven perspective and product
supply chain globally. With its commitment to responsible growth
and financial prudence, and the ability to operate within the
strictest regulatory environments, the Company has quickly become
one of the leading cultivators and distributors of high-quality
cannabis globally.
The IM Cannabis ecosystem operates in Israel through IMC Holdings and through its
commercial relationship with Focus Medical, which import, sells and
distributes cannabis to medical patients, leveraging years of
proprietary data and patient insights. The Company also operates
medical cannabis retail pharmacies, online platforms, distribution
centres and logistical hubs in Israel that enable the safe delivery and
quality control of IM Cannabis products throughout the entire value
chain. In Germany, the IM Cannabis
ecosystem operates through Adjupharm GmbH ("Adjupharm"),
where it also distributes cannabis to pharmacies for medical
cannabis patients. In Canada, IM
Cannabis operates through Trichome Financial Corp.
("Trichome") and its subsidiaries Trichome JWC Acquisition
Corp. ("TJAC") and MYM Nutraceuticals Inc. ("MYM"),
where it cultivates and processes cannabis for the adult-use market
at its Ontario, Nova Scotia, and Quebec facilities under the WAGNERS and
Highland Grow brands. For more information, please visit
www.imcannabis.com.
Disclaimer for Forward-Looking Statements
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
Canadian and United States
securities laws (collectively, "forward-looking
information"). Forward-looking information 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 event or result "may", "will",
"should", "could" or "might" occur or be achieved and other similar
expressions. Forward-looking information in this press release
includes, without limitation, statements relating to the Company's
business objectives and milestones and the anticipated timing
of execution; the performance of the Company's business, strategies
and operations; the intention to expand the business, operations
and potential activities of the Company; the closure of the Focus
Facility; expectations relating to the number of patients in
Israel licensed by the MOH to
consume medical cannabis; expectations of TJAC and MYM on
variations of net cost of sales; the future impact of Company's
acquisitions; the future product portfolios of the Group and the
Company's ability to export its products, strains and genetics from
Canada to Israel and Germany; the competitive conditions of the
cannabis industry and the growth of medical or adult-use
recreational cannabis markets in the jurisdictions in which the
Company operates; cannabis licensing in Israel, Germany and Canada; the anticipated decriminalization or
legalization of adult-use recreational cannabis in Israel and Germany; expectations regarding the renewal
and/or extension of the Group's licenses; the Group's anticipated
operating cash requirements and future financing needs; the Group's
expectations regarding its revenue, expenses, profit margins and
operations; the anticipated Gross Margins, EBITDA and Adjusted
EBITDA from the Company's operations; future opportunities for the
Company in the markets in which Company operates; and contractual
obligations and commitments.
Forward-looking information is based on assumptions that may
prove to be incorrect, including but not limited, the anticipated
increase in demand for medical and adult-use recreational cannabis
in the markets in which the Company operates; the Company's
satisfaction of international demand for its products; the
Company's ability to implement its growth strategies and leverage
synergies of acquisitions; the Company's ability to reach patients
through e-commerce and brick and mortar retail; the development and
introduction of new products; the ability to import and the supply
of premium and indoor grown cannabis products from the Canadian
Facilities and third- party suppliers and partners; the changes and
trends in the cannabis industry; the Company's ability to maintain
and renew or obtain required licenses; the ability to maintain
cost-efficiencies and network of suppliers to maintain purchasing
capabilities; the effectiveness of its products for medical
cannabis patients and recreational consumers; future cannabis
pricing and input costs; cannabis production yields; the Company
being able to continue to drive organic growth from Canadian
operations; and the Company's ability to market its brands and
services successfully to its anticipated customers.
The above lists of forward-looking statements and assumptions
are not exhaustive. Since forward-looking statements address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results may differ materially from
those currently anticipated or implied by such forward-looking
statements due to a number of factors and risks. These include:
general business risk and liability, including claims or complaints
in the normal course of business; any failure of the Company to
maintain "de facto" control over Focus Medical and/or HW Shinua in
accordance with IFRS 10; limitations on stockholdings of the
Company in connection with its potential direct engagement in the
Israeli medical cannabis market; the ability and/or need to obtain
additional financing for continued operations; the lack of control
over the Company's investees; the failure of the Company to comply
with applicable regulatory requirements in a highly regulated
industry; unexpected changes in governmental policies and
regulations in the jurisdictions in which the Company operates; the
Company's ability to continue to meet the listing requirements of
the CSE and the NASDAQ; any unexpected failure to maintain in good
standing or renew its licenses; the ability of the Company, its
acquisitions to integrate each entity into the Company's operations
and realize the anticipated benefits and synergies of each such
transaction and the timing thereof and the focus of management on
such integration; any potential undisclosed liabilities of entities
acquired by the Company that were unidentified during the due
diligence process; the interpretation of Company's acquisitions of
companies or assets by tax authorities or regulatory bodies,
including but not limited to the change of control of licensed
entities; the ability of the Group to deliver on their sales
commitments or growth objectives; the Group's reliance on
third-party supply agreements and its ability to enter into
additional supply agreements to provide sufficient quantities of
medical cannabis to fulfil the Group's obligations; the Group's
possible exposure to liability, the perceived level of risk related
thereto, and the anticipated results of any litigation or other
similar disputes or legal proceedings involving the Group; the
impact of increasing competition; any lack of merger and
acquisition opportunities; adverse market conditions; the inherent
uncertainty of production quantities, qualities and cost estimates
and the potential for unexpected costs and expenses.
Please see the other risks, uncertainties and factors set out
under the heading "Risk Factors" in the Company's annual
information form dated March 31,
2022, which is available on the Company's issuer profile on
SEDAR at www.sedar.com and edgar at www.sec.gov. Any
forward-looking statement included in this press release is made as
of the date of this press release and is based on the beliefs,
estimates, expectations and opinions of management on the date such
forward-looking information is made. The Company does not undertake
any obligation to update forward-looking statements except as
required by applicable securities laws. Investors should not place
undue reliance on forward-looking statements. Forward-looking
statements contained in this press release are expressly qualified
by this cautionary statement.
Financial Outlook
The Company and its management believe that the statements
regarding increased revenue, increased gross margin, positive
adjusted EBITDA and positive cash flow contained in this press
release are reasonable as of the date hereof, are based on
management's current views, strategies, expectations, assumptions
and forecasts, and have been calculated using accounting policies
that are generally consistent with the Company's current accounting
policies. These statements are considered future-oriented financial
outlooks and financial information (collectively, "FOFI") under
applicable securities laws. These statements and any other FOFI
included herein have been approved by management of the Company as
of the date hereof. Such FOFI are provided for the purposes of
presenting information about management's current expectations and
goals relating to the benefits of existing sales and supply
agreements with Focus Medical and Adjupharm, increased sales in
Israel through the fulfilment of
Focus Medical's existing supply agreements, increased sales from
the resumption of product shipments to Adjupharm and new supply
agreements for medical cannabis to be received by Adjupharm in
Germany, the inclusion of Panaxia,
MYM and Trichome operations in the Company's financial results
following closing of the respective acquisitions, additional
product launches by Trichome under the WAGNERS brand and the future
business of the Company. However, because this information is
highly subjective and subject to numerous risks, including the
risks discussed above under "Disclaimer for Forward Looking
Statements", it should not be relied on as necessarily indicative
of future results. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
FOFI prove incorrect, actual results may vary materially from those
described herein as intended, planned, anticipated, believed,
estimated or expected. Although management of IMC has attempted to
identify important risks, uncertainties and factors which could
cause actual results to differ materially, there may be others that
cause results not to be as anticipated, estimated or intended. The
Company disclaims any intention or obligation to update or revise
any FOFI, whether as a result of new information, future events or
otherwise, except as required by securities laws.
Non-IFRS Measures
This press release includes references to "EBITDA", "Adjusted
EBITDA" and "Gross Margin", which are non-International Financial
Reporting Standards ("IFRS") financial measures. Non-IFRS
measures are not recognized measures under IFRS, do not have a
standardized meaning prescribed by IFRS, and are therefore unlikely
to be comparable to similar measures presented by other companies.
The Company defines EBITDA as earnings before interest, tax,
depreciation and amortization. EBITDA has no direct, comparable
IFRS financial measure. The Company defines adjusted EBITDA as
EBITDA adjusted by removing other non-recurring or noncash items,
including the unrealized change in fair value of biological assets,
realized fair value adjustments on inventory sold in the period,
share-based compensation expenses, depreciation of right-of-use
assets, revaluation adjustments of financial assets and liabilities
measured on a fair value basis and non-recurring transaction costs
included in operating expenses. The Company defines gross margin as
the difference between revenue and cost of goods sold divided by
revenue (expressed as a percentage), prior to the effect of a fair
value adjustment for inventory and biological assets. IMC has used
or included these non-IFRS measures solely to provide investors
with added insight into IMC's financial performance. Readers are
cautioned that such non-IFRS measures may not be appropriate for
any other purpose. Non-IFRS measures should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
[1] The final Panaxia pharmacy closing is expected to occur in
Q3 2022.
[2] The Panaxia transaction includes a further option to
acquire, for no additional consideration, a pharmacy from Panaxia,
including requisite licenses to dispense and sell medical cannabis
to patients, that the Company has exercised.
Three months
ended
|
March 31,
2022
|
March 31,
2021
|
|
|
|
Net Revenues
|
$
23,569
|
$
8,767
|
Cost of
revenues
|
$
17,215
|
$
4,140
|
Gross profit before FV
adjustments
|
$
6,354
|
$
4,627
|
Gross margin before FV
adjustments
|
27%
|
53%
|
|
For the three
months
ended March 31,
|
For the year ended
December 31,
|
|
2022*
|
|
2021*
|
2021
|
Operating
Loss
|
$
(11,549)
|
|
$ (1,705)
|
$ (38,389)
|
Depreciation &
Amortization
|
$ 1,837
|
|
$
385
|
$ 6,004
|
EBITDA
|
$
(9,712)
|
|
$ (1,320)
|
$ (32,385)
|
IFRS Biological assets
fair value adjustments, net
|
$
(216)
|
|
$
(401)
|
$ 1,586
|
Share-based
payments
|
$ 1,610
|
|
$
630
|
$ 7,471
|
Costs related to the
NASDAQ listing
|
$
-
|
|
$
122
|
$ 1,296
|
Restructuring
cost
|
$ 3,747
|
|
$
-
|
$
-
|
Other non-recurring
costs
|
$
67
|
|
$
-
|
$
-
|
Adjusted EBITDA
(Non-IFRS)(1)
|
$
(4,504)
|
|
$
(969)
|
$ (22,032)
|
Notes:
- Acquisition costs, in the amount of $13 and $1,768 for
the three months ended March 31, 2022
and 2021, respectively, have not been adjusted in the
above-mentioned table. Had these non-operational acquisition costs
been adjusted, the Company's Adjusted EBITDA for the three months
ended March 31, 2022 and 2021 would
have been $(4,491) and $799, respectively.
The Company's Adjusted EBITDA for the three months ended
March 31, 2022 decreased primarily
due to the general and administrative costs mainly attributable to
the growing corporate activities in Israel, Canada, and Germany, professional services derived from
legal fees and other consulting services, salaries to employees and
increased insurance costs upon listing on NASDAQ. Adjusted EBITDA
is expected to climb with the full integration of Trichome and MYM
as well as the expected synergies from the newly acquired retail
activities in Israel.
Company Contact:
Maya Lustig
Director, Investor & Public Relations
IM Cannabis
+972-54-677-8100
maya.l@imcannabis.com
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
Canadian Dollars in
thousands
|
|
|
|
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
10,315
|
|
$
13,903
|
Restricted
deposit
|
|
|
|
-
|
|
1
|
Trade
receivables
|
|
|
|
22,148
|
|
16,711
|
Advances to
suppliers
|
|
|
|
5,047
|
|
2,300
|
Other accounts
receivable
|
|
|
|
8,518
|
|
14,481
|
Loans
receivable
|
|
|
|
2,247
|
|
2,708
|
Biological
assets
|
|
|
|
2,117
|
|
1,687
|
Inventories
|
|
|
|
30,368
|
|
29,391
|
|
|
|
|
|
|
|
|
|
|
|
80,760
|
|
81,182
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
26,875
|
|
30,268
|
Investments
|
|
|
|
2,467
|
|
2,429
|
Investments and
financial instruments
|
|
|
|
4,141
|
|
3,129
|
Derivative
assets
|
|
|
|
26
|
|
14
|
Right-of-use assets,
net
|
|
|
|
16,794
|
|
18,162
|
Deferred tax
assets
|
|
|
|
355
|
|
16
|
Intangible assets,
net
|
|
|
|
29,436
|
|
30,885
|
Goodwill
|
|
|
|
120,214
|
|
121,303
|
|
|
|
|
|
|
|
|
|
|
|
200,308
|
|
206,206
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
281,068
|
|
$
287,388
|
|
|
The accompanying notes
are an integral part of the interim condensed consolidated
financial statements.
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
Canadian Dollars in
thousands
|
|
|
|
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
payables
|
|
|
|
$
15,069
|
|
$
13,989
|
Bank loans and credit
facilities
|
|
|
|
15,526
|
|
9,502
|
Other accounts payable
and accrued expenses
|
|
|
|
20,130
|
|
20,143
|
Accrued purchase
consideration liabilities
|
|
|
|
2,836
|
|
6,039
|
Current maturities of
operating lease liabilities
|
|
|
|
1,552
|
|
1,554
|
|
|
|
|
|
|
|
|
|
|
|
55,113
|
|
51,227
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants measured at
fair value
|
|
|
|
3,347
|
|
6,022
|
Operating lease
liabilities
|
|
|
|
17,276
|
|
17,820
|
Long-term
loans
|
|
|
|
378
|
|
392
|
Employee benefit
liabilities, net
|
|
|
|
295
|
|
391
|
Deferred tax liability,
net
|
|
|
|
6,299
|
|
6,591
|
|
|
|
|
|
|
|
|
|
|
|
27,595
|
|
31,216
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
82,708
|
|
82,443
|
|
|
|
|
|
|
|
EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE
COMPANY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital and
premium
|
|
|
|
241,903
|
|
237,677
|
Treasury
Stock
|
|
|
|
(660)
|
|
(660)
|
Translation
reserve
|
|
|
|
1,776
|
|
2,614
|
Reserve from
share-based payment transactions
|
|
|
|
13,212
|
|
12,348
|
Accumulated
deficit
|
|
|
|
(60,195)
|
|
(50,743)
|
|
|
|
|
|
|
|
Total equity
attributable to equity holders of the Company
|
|
|
|
196,036
|
|
201,236
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
2,324
|
|
3,709
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
198,360
|
|
204,945
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
|
|
$
281,068
|
|
$
287,388
|
|
|
The accompanying notes
are an integral part of the interim condensed consolidated
financial statements.
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
|
AND OTHER
COMPREHENSIVE INCOME (UNAUDITED)
|
Canadian Dollars in
thousands, except per share data
|
|
|
|
|
|
Three months
ended
March 31,
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
23,569
|
|
$
8,767
|
Cost of
revenues
|
|
|
|
17,215
|
|
4,140
|
Gross profit before
fair value adjustments
|
|
|
|
6,354
|
|
4,627
|
|
|
|
|
|
|
|
Fair value
adjustments:
|
|
|
|
|
|
|
Unrealized change in
fair value of biological assets
|
|
|
|
1,079
|
|
2,343
|
Realized fair value
adjustments on inventory sold in the period
|
|
|
|
(863)
|
|
(1,942)
|
Total fair value
adjustments
|
|
|
|
216
|
|
401
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
6,570
|
|
5,028
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
|
9,042
|
|
4,913
|
Selling and marketing
expenses
|
|
|
|
3,720
|
|
1,190
|
Restructuring
expenses
|
|
|
|
3,747
|
|
-
|
Share-based
compensation
|
|
|
|
1,610
|
|
630
|
Total operating
expenses
|
|
|
|
18,119
|
|
6,733
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
|
(11,549)
|
|
(1,705)
|
|
|
|
|
|
|
|
Finance
income
|
|
|
|
2,891
|
|
7,226
|
Finance
expense
|
|
|
|
(2,336)
|
|
(303)
|
Finance income,
net
|
|
|
|
555
|
|
6,923
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
|
|
(10,994)
|
|
5,218
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
|
(253)
|
|
503
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
(10,741)
|
|
4,715
|
|
|
|
|
|
|
|
Other comprehensive
income that will not be reclassified to profit
or loss in subsequent periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on
translation to presentation currency
|
|
|
|
(1,792)
|
|
(1,390)
|
|
|
|
|
|
|
|
Total other
comprehensive income that will not be reclassified to
profit or loss in subsequent periods
|
|
|
|
(1,792)
|
|
(1,390)
|
|
|
|
|
|
|
|
Other comprehensive
income that will be reclassified to profit or
loss in subsequent periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments arising
from translating financial statements of foreign
operation
|
|
|
|
858
|
|
232
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss) that will be reclassified to
profit or loss in subsequent periods
|
|
|
|
858
|
|
232
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss)
|
|
|
|
(934)
|
|
(1,158)
|
|
|
|
|
|
|
|
Total comprehensive
income (loss)
|
|
|
|
$
(11,675)
|
|
$
3,557
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
|
AND OTHER
COMPREHENSIVE INCOME (UNAUDITED)
|
Canadian Dollars in
thousands, except per share data
|
|
|
|
|
|
Three months
ended
March
31,
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to:
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
|
(9,452)
|
|
4,505
|
Non-controlling
interests
|
|
|
|
(1,289)
|
|
210
|
|
|
|
|
|
|
|
|
|
|
|
$
(10,741)
|
|
$
4,715
|
Total comprehensive
income (loss) attributable to:
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
|
(10,290)
|
|
3,336
|
Non-controlling
interests
|
|
|
|
(1,385)
|
|
221
|
|
|
|
|
|
|
|
|
|
|
|
$
(11,675)
|
|
$
3,557
|
Net income (loss) per
share attributable to equity
holders of the Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per share (in CAD)
|
|
|
|
$
(0.14)
|
|
$
0.11
|
Diluted net income
(loss) per share (in CAD)
|
|
|
|
$
(0.17)
|
|
$
(0.06)
|
|
|
The accompanying notes
are an integral part of the interim condensed consolidated
financial statements.
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
Canadian Dollars in
thousands
|
|
|
Three months
ended
March
31,
|
|
|
2022
|
|
2021
|
Cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income (loss) for
the period
|
|
$
(10,741)
|
|
$
4,715
|
Adjustments for
non-cash items:
|
|
|
|
|
Unrealized gain on changes in fair value of biological
assets
|
|
(1,079)
|
|
(2,343)
|
Fair value adjustment on sale of inventory
|
|
863
|
|
1,942
|
Fair value adjustment on Warrants, investments and
accounts
receivable
|
|
(2,688)
|
|
(7,160)
|
Depreciation of property, plant and equipment
|
|
1,038
|
|
256
|
Amortization of intangible assets
|
|
636
|
|
45
|
Depreciation of right-of-use assets
|
|
163
|
|
84
|
Finance expenses, net
|
|
2,132
|
|
211
|
Deferred tax liability, net
|
|
(542)
|
|
211
|
Share-based payment
|
|
1,610
|
|
630
|
Share-based acquisition costs related to business
combination
with acquisition of
subsidiary
|
|
-
|
|
989
|
Revaluation of other receivable
|
|
67
|
|
-
|
Restructuring expense
|
|
3,069
|
|
-
|
|
|
5,269
|
|
(5,135)
|
|
|
|
|
|
Changes in working
capital:
|
|
|
|
|
Increase in trade receivables
|
|
(6,009)
|
|
(3,682)
|
Decrease (increase) in other accounts receivable and advances
to
suppliers
|
|
1,892
|
|
(4,656)
|
Decrease (increase) in biological assets, net of fair value
adjustments
|
|
641
|
|
(387)
|
Increase in inventories, net of fair value
adjustments
|
|
(1,847)
|
|
(1,007)
|
Increase in trade payables
|
|
2,377
|
|
3,561
|
Changes in employee benefit liabilities, net
|
|
(83)
|
|
(24)
|
Decrease in other accounts payable and accrued
expenses
|
|
(437)
|
|
(1,620)
|
|
|
|
|
|
|
|
(3,466)
|
|
(7,815)
|
|
|
|
|
|
Taxes (paid)
received
|
|
(505)
|
|
444
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(9,443)
|
|
(7,791)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
(682)
|
|
(916)
|
Proceeds from loan receivable
|
|
350
|
|
-
|
Acquisition of subsidiary
|
|
-
|
|
362
|
Investment in associate
|
|
-
|
|
(12)
|
Proceeds from restricted cash
|
|
-
|
|
17
|
|
|
|
|
|
Net cash used in
investing activities
|
|
$
(332)
|
|
$
(549)
|
|
|
The accompanying notes
are an integral part of the interim condensed consolidated
financial statements.
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
Canadian Dollars in
thousands
|
|
|
Three months
ended
March
31,
|
|
|
2022
|
|
2021
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of warrants
|
|
-
|
|
461
|
Proceeds from exercise of options
|
|
333
|
|
65
|
Repayment of lease liability
|
|
(371)
|
|
(40)
|
Interest paid - lease liability
|
|
(435)
|
|
(16)
|
Receipt of bank loan and credit facilities
|
|
6,047
|
|
-
|
Cash paid for interest
|
|
(211)
|
|
-
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
5,393
|
|
470
|
|
|
|
|
|
Effect of foreign
exchange on cash and cash equivalents
|
|
824
|
|
237
|
|
|
|
|
|
Decrease in cash and
cash equivalents
|
|
(3,588)
|
|
(7,633)
|
Cash and cash
equivalents at beginning of the period
|
|
13,903
|
|
8,885
|
|
|
|
|
|
Cash and cash
equivalents at end of the period
|
|
$
10,315
|
|
$
1,252
|
|
|
|
|
|
Supplemental disclosure
of non-cash activities:
|
|
|
|
|
|
|
|
|
|
Right-of-use asset
recognized with corresponding lease liability
|
|
$
169
|
|
$
81
|
Issuance of shares in
payment of purchase consideration liability
|
|
$
3,147
|
|
$
-
|
|
|
The accompanying notes
are an integral part of the interim condensed consolidated
financial statements.
|
View original
content:https://www.prnewswire.com/news-releases/im-cannabis-reports-record-first-quarter-2022-financial-results-revenues-increase-169-yoy-to-23-6-million-301546551.html
SOURCE IM Cannabis Corp.