IM Cannabis Corp. is commencing its exit from the Canadian cannabis market to focus its resources on pursuing growth opportunities in Israel, Germany, and Europe.
With this move, the Company aims for a leaner organization with a primary focus on achieving profitability in 2023. IMC will continue building on the increasing demand and positive momentum in Israel, fueled by strategic alliances with top-of-the-line Canadian suppliers and a highly skilled sourcing team, to cement its leadership position in Israel and to advance a long-term growth plan in Germany. In the Company's view, the strong sourcing infrastructure in Israel, powered by advanced product knowledge and regulatory expertise, will constitute a key competitive advantage in Germany, especially upon the legalization of recreational cannabis. This is based on the premise that the German and Israeli markets share a number of common attributes, such as robust commercial infrastructure, highly developed digital capabilities, favorable demographics, and customer preferences.
"Our announcement today is a crucial part of our ongoing strategic refocusing plan to concentrate our efforts on the highest value markets and accelerate our path to profitability," says Oren Shuster, CEO of IM Cannabis. "By exiting the Canadian Cannabis market, we are seeking to maximize efficiency and create the right balance for future success. We are further strengthening our Israeli operations and preparing to bring our expertise to Europe to achieve market leadership in the medical cannabis market and to be fully ready to capitalize on the adult-use market upon legalization."
In connection with the announced restructuring, IMC's wholly-owned Canadian subsidiary, Trichome Financial Corp., and certain of its wholly-owned subsidiaries, including Trichome JWC Acquisition Corp., MYM Nutraceuticals, Trichome Retail Corp., MYM International Brands, and Highland Grow, filed this morning and obtained creditor protection under the Canadian Companies' Creditors Arrangement Act pursuant to an order of the Ontario Superior Court of Justice. The CCAA proceedings are solely in respect of Trichome. As such, the Company's other assets or subsidiaries, including those in Israel and Germany, are not parties to the CCAA proceedings.
The CCAA proceedings will afford Trichome the stability and flexibility required to restructure its business, including through a sale and investment solicitation process to be approved by the Court. Accordingly, the Company's operations in Canada are expected to continue through Trichome until a sale transaction or one or more other restructuring transactions is completed.
For more information:
IM Cannabis
www.imcannabis.com