IMC remains singularly focused on accelerating its path to
profitability through active cost management and margin improvement
while maintaining sales.
TORONTO, and GLIL YAM, Israel, Nov. 13,
2023 /CNW/ -- IM Cannabis Corp. (the "Company"
or "IMC") (NASDAQ: IMCC) (CSE: IMCC), an international
medical cannabis company, announced its financial results today for
the third quarter ended September 30,
2023. All amounts are reported in Canadian dollars and
compared to the quarter ended September 30,
2022, unless otherwise stated.
The full set of unaudited interim condensed consolidated
financial statements for the three and nine months ended
September 30, 2023 (the "Q3
FS"), and the accompanying management's discussion and analysis
(the "Q3 MD&A"), can be accessed by visiting the
Company's website at https://investors.imcannabis.com/, and
its profile pages on SEDAR+ at www.sedarplus.ca, and EDGAR
at www.sec.gov.
Q3 2023 Financial Highlights
- 6.6% decrease in Revenue and an additional
6.4% decrease in Revenue directly related to negative
currency fluctuations for a total revenue of $12.4 million
- 10% increase in Gross Margin
- 30% increase in Gross Profit
- 65% decrease in Non-IFRS Adjusted EBITDA
Loss
- 34% decrease in operating expenses, a 6% decrease
compared to Q2, 2023
Management Commentary
"As in the previous quarters, in Q3 2023, we continued towards
our goal of sustainable profitability," said Oren Shuster, Chief Executive Officer of
IMC. "Our focus on premium and premium plus in the Israeli
market, where we are market leaders. On the flip side, we had to
adjust our portfolio accordingly, to clean out the slow-moving mid
and low range stock, which increased our sales volumes, but
affected both our revenue and gross margin this quarter."
"In Q3 we were further able to deliver on our goal of active
cost and margin management," said Itay Vago, Chief Financial Officer of
IMC. "While we were able to further reduce our operating costs in
Q3 by 34% vs Q3 2022 and 6% vs Q2 2023, our revenue and gross
margin was negatively impacted by the currency fluctuations between
the Israeli Shekel and the Canadian Dollar causing a 2.4% decrease
in revenue in Q3 vs Q2 2023 and a $800.000 decrease overall in 2023."
Q3 2023 Conference Call
The Company will host a zoom web conference call today at
9:00 a.m. ET to discuss the results,
followed by a question-and-answer session for the investment
community. Investors are invited to register by
clicking here. All relevant information will be sent upon
registration.
If you are unable to join us live, a recording of the call will
be available on our website
at https://investors.imcannabis.com/ within 24 hours
after the call.
Operational Highlights
- In Q3 we kicked off a full integration project between
Israel and Germany to further drive efficiencies in both
of our markets. From supply to marketing and sales we are
sharing information and working together as one team.
On October 7, 2023, the war
between the terror organization Hamas and Israel began. While it is still too early to
assess the extent of the impact it has and will have on the medical
cannabis industry in Israel and on
IMC, we expect that IMC may be impacted.
IMC Israel:
- We reenforced our position as #1 in the premium market through
the launch of two new LOT 420 high THC strains, Glto 33 and Xeno,
as well as an additional IMC product, Chemchew.
- We outsourced outpatient delivery service, keeping the same
level of service but with an estimated $300,000 CAD in annual savings.
IMC Germany:
- We launched our first premium High THC strain leveraging the
entire IMC Israel branding and collateral. By working closely
with the Israeli team, we were able to ensure that this launch was
our strongest launch in Germany so
far.
Q3 2023 Financial Results
- Revenues for the third quarter of 2023 were
$12.4 million compared to
$14.2 million in the third quarter of
2022, a decrease of 13%. Of these 13%, almost half,
6.4% or $0.9 million of the decrease
is coming from negative currency fluctuations.
- Gross Margin, before fair value
adjustments, in the third quarter of 2023 was 22%,
compared to 20% in the third quarter of 2022, an increase
of 10%.
- Non-IFRS Adjusted EBITDA Loss in the third quarter
of 2023 was $1.3
million, compared to an Adjusted EBITDA Loss of
$3.7 million in the third
quarter of 2022, a decrease of 65%. The decrease is
mainly attributable to slow moving mid-range stock discounts and
dollar rate increase effect.
- Total Operating Expenses in the third
quarter of 2023 were $4.9 million,
compared to $7.5 million in the third
quarter of 2022, a decrease of 34%. Most of the decline
can be attributed to restructuring that took place in 2023.
- Total Dried Flower sold in the third quarter of
2023 was approximately 2,558kg with an average selling price of
$4.35 per gram compared to
approximately 1,453kg in the third quarter of 2022 with an average
selling price of $9.08 per gram. The
decrease in average selling price was caused by increased
competition within the retail segment, and mid-range stock
discounts.
- Gross Profit for the third quarter of 2023 was
$2.6 million, compared to
$2 million in the third quarter of
2022, an increase of 30%. The increase is mainly
attributable to increased high margin sales of imported premium
cannabis products, and reduction of costs of sales.
- General and Administrative Expenses in the
third quarter of 2023 were $2.1
million, compared to $4.3
million in the third quarter of 2022,
a decrease of 51%. The decrease in the general and
administrative expense is mainly attributable to reduced employee
salaries derived from the restructuring plan in Israel announced in the first quarter of 2023
and presented separately in the interim financial statement for the
period.
- Selling and Marketing Expenses in the third
quarter of 2023 were $2.6 million,
compared to $2.8 million in the third
quarter of 2022, a decrease of 7%.
- Operating Loss in the third quarter of
2023 was $2.3 million, compared
to $5.5 million in the third quarter
of 2022, a decrease of 58%.
- Net Loss from Continuing Operations in the third
quarter of 2023 was $2.1
million, compared to $4.5
million in the third quarter of 2022, driven
mostly by higher gross margin and reduction in operating expenses
and offset by finance income in the third quarter of 2022.
- Basic Loss and Diluted per Share from Continuing
Operations in the third quarter of 2023 was $(0.16), compared to a loss of $(0.06) per share in the third quarter of
2022
- Cash and Cash Equivalents as of September 30, 2023 were $1.3 million, compared to $2.4 million in December
31, 2022.
- Total Assets as of September
30, 2023 were $52.4 million,
compared to $60.7 million in
December 31, 2022, a decrease
of 14%. The decrease is mainly attributed to reduced cash and
cash equivalents, inventory and to the effect of dollar rate
increase on items denominated in Israeli Shekels.
- Total Liabilities as of September 30, 2023 were $32.6 million, compared to $36.9 in December 31,
2022, a decrease of 12%. The decrease was
mainly due to the reduction in trade payables, valuation of
warrants fair value and to the effect of dollar rate increase on
items denominated in Israeli Shekels.
Non-IFRS Measures
This press release makes reference to "Gross Margin" and
"Adjusted EBITDA", which are financial measures that are not
recognized measures under IFRS and do not have a standardized
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies. These
measures are provided as complementary information to the Company's
IFRS measures by providing further understanding of our results of
operations from management's perspective. Accordingly, these
measures should neither be considered in isolation nor as a
substitute for analysis of our financial information reported under
IFRS.
For an explanation of how management defines Gross Margin and
Adjusted EBITDA, see the Company's management's discussion and
analysis for the period ended December 31,
2022, available under the Company's SEDAR+ profile
at www.sedarplus.ca on EDGAR
at www.sec.gov/edgar.
We reconcile these non-IFRS financial measures to the most
comparable IFRS measures as set out below.
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis
company that provides premium cannabis products to medical patients
in Israel and Germany, two of the largest medical cannabis
markets. The Company has recently exited operations in Canada to pivot its focus and resources to
achieve sustainable and profitable growth in its highest value
markets, Israel and Germany. The Company leverages a transnational
ecosystem powered by a unique data-driven approach and a globally
sourced product supply chain. With an unwavering commitment to
responsible growth and compliance with the strictest regulatory
environments, the Company strives to amplify its commercial and
brand power to become a global high-quality cannabis player.
The IMC ecosystem operates in Israel through its commercial relationship
with Focus Medical Herbs Ltd., which imports 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 centers, and
logistical hubs in Israel that
enable the safe delivery and quality control of IMC products
throughout the entire value chain. In Germany, the IMC ecosystem operates through
Adjupharm GmbH, where it distributes cannabis to pharmacies for
medical cannabis patients. Until recently, the Company also
actively operated in Canada
through Trichome Financial Corp and its wholly owned subsidiaries,
where it cultivated, processed, packaged, and sold premium and
ultra-premium cannabis at its own facilities under the WAGNERS and
Highland Grow brands for the adult-use market in Canada. The
Company has exiting operations in Canada and considers these operations
discontinued.
Disclaimer for Forward-Looking Statements
This press release contains forward-looking information or
forward-looking statements under applicable Canadian and
United States 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.
Forward-looking 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
event or result "may", "will", "should", "could" or "might" occur
or be achieved and other similar expressions. Forward-looking
statements are based on the estimates and opinions of management on
the date the statements are made. In the press release, such
forward-looking statements include, but are not limited to,
statements relating to the Company leaving the Canadian cannabis
market to focus on the Israel and
Germany markets; the impact of the
Israel-Hamas war on the Company, its operations and the medical
cannabis industry in Israel; the
Company's focus and goals, including remaining singularly focused
on accelerating its path to profitability through active cost
management and margin improvement while maintaining sales; the
Company achieving sustainable profitability and increasing
shareholder value; statements regarding the Company's ongoing
restructuring of its operations, including the reduction in its
Israeli workforce; the strategic plans of the Company; and the
Company's estimated cost reductions and its ability to maintain
revenues.
Forward-looking statements are based on assumptions that may
prove to be incorrect, including but not limited to: the
development and introduction of new products; continuing demand for
medical and adult-use recreational cannabis in the markets in which
the Company operates; the Company's ability to reach patients
through both e-commerce and brick and mortar retail operations; the
Company's ability to maintain and renew or obtain required
licenses; the effectiveness of its products for medical cannabis
patients and recreational consumers; the Company focusing on the
Israel and Germany markets; the Israel-Hamas war having
minimal impact on the Company, its operations and the medical
cannabis industry in Israel; the
Company remaining singularly focused on accelerating its path to
profitability; the Company continuing to actively cost manage and
improve margins, while maintaining sales; the Company continuing to
achieve sustainable profitability and increase shareholder value;
the Company completing its restructuring of its operations,
including the reduction in its Israeli workforce; the Company
achieving cost reductions and maintaining revenues; and the
Company's ability to market its brands and services successfully to
its anticipated customers and medical cannabis patients.
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: any failure of the Company to maintain "de facto"
control over Focus Medical in accordance with IFRS 10; 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 Canadian Securities Exchange and the NASDAQ
Capital Market; any unexpected failure to maintain in good standing
or renew its licenses; the ability of the Company and Focus Medical
(collectively, the "Group") to deliver on their sales
commitments or growth objectives; the reliance of the Group on
third-party 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; risks of
product liability and other safety-related liability from the usage
of the Group's cannabis products; supply chain constraints;
reliance on key personnel; the risk of defaulting on existing debt;
risks surrounding war, conflict and civil unrest in Eastern Europe and the Middle East, including the impact of the
Israel-Hamas war on the Company, its operations and the medical
cannabis industry in Israel; risks
associated with the Company focusing on the Israel and Germany markets; the inability of the Company
to achieve sustainable profitability and/or increase shareholder
value; the inability of the Company to actively manage costs and/or
improve margins; the inability of the company to grow and/or
maintain sales; the inability of the Company to meet its goals
and/or strategic plans; and the inability of the Company to reduce
costs and/or maintain revenues.
Please see the other risks, uncertainties and factors set out
under the heading "Risk Factors" in the Company's annual report
dated March 29, 2023, which is
available on the Company's issuer profile on SEDAR+
at www.sedarplus.ca and Edgar at www.sec.gov/edgar. 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.
Company Contact:
Anna Taranko, Director Investor
& Public Relations
IM Cannabis Corp.
+49 157 80554338
a.taranko@imcannabis.de
Oren Shuster, CEO
IM Cannabis Corp.
+972-77-3603504
info@imcannabis.com
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
Canadian Dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
September
30, 2023
|
|
December 31,
2022
|
|
|
Note
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
1,304
|
|
$
2,449
|
Trade
receivables
|
|
|
|
9,672
|
|
8,684
|
Advances to
suppliers
|
|
|
|
1,198
|
|
1,631
|
Other accounts
receivable
|
|
|
|
5,140
|
|
3,323
|
Inventories
|
|
|
|
11,031
|
|
16,585
|
|
|
|
|
|
|
|
|
|
|
|
28,345
|
|
32,672
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
5,020
|
|
5,221
|
Investments in
affiliates
|
|
|
|
2,202
|
|
2,410
|
Right-of-use assets,
net
|
|
|
|
1,203
|
|
1,929
|
Deferred tax assets,
net
|
|
|
|
648
|
|
763
|
Intangible assets,
net
|
|
|
|
6,021
|
|
7,910
|
Goodwill
|
|
|
|
8,926
|
|
9,771
|
|
|
|
|
|
|
|
|
|
|
|
24,020
|
|
28,004
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
52,365
|
|
$
60,676
|
|
|
|
|
|
|
|
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
|
|
|
|
September
30, 2023
|
|
December 31,
2022
|
|
|
Note
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Trade
payables
|
|
|
|
$ 9,586
|
|
$ 15,312
|
Bank loans and credit
facilities
|
|
|
|
10,137
|
|
9,246
|
Other accounts payable
and accrued expenses
|
|
|
|
6,000
|
|
6,013
|
Accrued purchase
consideration liabilities
|
|
|
|
1,830
|
|
2,434
|
Current maturities of
operating lease liabilities
|
|
|
|
448
|
|
814
|
|
|
|
|
|
|
|
|
|
|
|
28,001
|
|
33,819
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Warrants measured at
fair value
|
|
3
|
|
2,447
|
|
8
|
Operating lease
liabilities
|
|
|
|
720
|
|
1,075
|
Long-term
loans
|
|
|
|
376
|
|
399
|
Employee benefit
liabilities, net
|
|
|
|
30
|
|
246
|
Deferred tax liability,
net
|
|
|
|
997
|
|
1,332
|
|
|
|
|
|
|
|
|
|
|
|
4,570
|
|
3,060
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
32,571
|
|
36,879
|
|
|
|
|
|
|
|
EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE COMPANY:
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
Share capital and
premium
|
|
|
|
251,155
|
|
245,776
|
Translation
reserve
|
|
|
|
1,304
|
|
1,283
|
Reserve from
share-based payment transactions
|
|
|
|
12,455
|
|
15,167
|
Accumulated
deficit
|
|
|
|
(245,747)
|
|
(239,574)
|
|
|
|
|
|
|
|
Total equity
attributable to equity holders of the Company
|
|
|
|
19,167
|
|
22,652
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
627
|
|
1,145
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
19,794
|
|
23,797
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
|
|
$
52,365
|
|
$ 60,676
|
|
|
|
|
|
|
|
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
|
|
|
Nine months
ended
September
30,
|
|
Three months
ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
38,106
|
|
$ 39,874
|
|
$
12,370
|
|
$
14,170
|
Cost of
revenues
|
|
28,391
|
|
31,374
|
|
9,632
|
|
11,351
|
Gross profit before
fair value adjustments
|
|
9,715
|
|
8,500
|
|
2,738
|
|
2,819
|
|
|
|
|
|
|
|
|
|
Fair value
adjustments:
|
|
|
|
|
|
|
|
|
Unrealized change in
fair value of biological assets
|
|
-
|
|
(315)
|
|
-
|
|
-
|
Realized fair value
adjustments on inventory sold in the period
|
|
(710)
|
|
(1,626)
|
|
(93)
|
|
(866)
|
Total fair value
adjustments
|
|
(710)
|
|
(1,941)
|
|
(93)
|
|
(866)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
9,005
|
|
6,559
|
|
2,645
|
|
1,953
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
7,708
|
|
11,670
|
|
2,145
|
|
4,315
|
Selling and marketing
expenses
|
|
7,991
|
|
8,379
|
|
2,564
|
|
2,797
|
Restructuring
expenses
|
|
617
|
|
4,383
|
|
-
|
|
-
|
Share-based
compensation
|
|
316
|
|
2,209
|
|
195
|
|
367
|
Total operating
expenses
|
|
16,632
|
|
26,641
|
|
4,904
|
|
7,479
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
7,627
|
|
20,082
|
|
2,259
|
|
5,526
|
|
|
|
|
|
|
|
|
|
Finance income,
net
|
|
869
|
|
3,782
|
|
248
|
|
1,198
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
6,758
|
|
16,300
|
|
2,011
|
|
4,328
|
Income tax benefit
(expense)
|
|
(50)
|
|
(1,029)
|
|
125
|
|
204
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
(6,708)
|
|
(15,271)
|
|
(2,136)
|
|
(4,532)
|
|
|
|
|
|
|
|
|
|
Net loss from
discontinued operations
|
|
-
|
|
(142,581)
|
|
-
|
|
(123,643)
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(6,708)
|
|
(157,852)
|
|
(2,136)
|
|
(128,175)
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) that will not be reclassified to profit or loss in
subsequent periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement gain on
defined benefit plan
|
|
36
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
Exchange differences
on translation to presentation currency
|
|
(622)
|
|
(1,630)
|
|
39
|
|
1,312
|
|
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss) that will not be reclassified to profit
or loss in subsequent periods
|
|
(586)
|
|
(1,630)
|
|
39
|
|
1,312
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) that will be reclassified to profit or loss in
subsequent periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments arising
from translating financial statements of foreign
operation
|
|
624
|
|
654
|
|
158
|
|
(549)
|
|
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss) that will be reclassified to profit or
loss in subsequent periods:
|
|
624
|
|
654
|
|
158
|
|
(549)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss)
|
|
38
|
|
(976)
|
|
197
|
|
763
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
$
(6,670)
|
|
$ (158,828)
|
|
$
(1,939)
|
|
$ (127,412)
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME (UNAUDITED)
|
Canadian Dollars in
thousands, except per share data
|
|
|
|
|
Nine months
ended
September
30,
|
|
Three months
ended
September
30,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Note
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to:
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
|
$
(6,209)
|
|
$ (155,863)
|
|
$
(2,150)
|
|
$ (127,788)
|
Non-controlling
interests
|
|
|
|
(499)
|
|
(1,989)
|
|
14
|
|
(387)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(6,708)
|
|
$ (157,852)
|
|
$
(2,136)
|
|
$ (128,175)
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss attributable to:
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
|
$
(6,152)
|
|
$ (156,754)
|
|
$
(1,943)
|
|
$ (127,069)
|
Non-controlling
interests
|
|
|
|
(518)
|
|
(2,074)
|
|
4
|
|
(343)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(6,670)
|
|
$ (158,828)
|
|
$
(1,939)
|
|
$ (127,412)
|
Net income (loss) per
share attributable to equity holders of the Company:
|
|
6
|
|
|
|
|
|
|
|
|
Basic loss per share
(in CAD)
|
|
|
|
$
(0.49)
|
|
$
(2.22)
|
|
$
(0.16)
|
|
$
(1.81)
|
Diluted loss per share
(in CAD)
|
|
|
|
$
(0.49)
|
|
$
(2.29)
|
|
$
(0.16)
|
|
$
(1.81)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to equity holders of the Company from continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share
(in CAD)
|
|
|
|
$
(0.49)
|
|
$
(0.19)
|
|
$
(0.16)
|
|
$
(0.06)
|
Diluted loss per share
(in CAD)
|
|
|
|
$
(0.49)
|
|
$
(0.26)
|
|
$
(0.16)
|
|
$
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share
attributable to equity holders of the Company from discontinued
operations:
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share (in CAD)
|
|
|
|
-
|
|
$
(2.03)
|
|
-
|
|
$
(1.75)
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Nine months
ended
September
30,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net loss for the
period
|
|
$
(6,708)
|
|
$
(157,852)
|
|
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
Unrealized gain on
changes in fair value of biological assets
|
|
-
|
|
(553)
|
Fair value adjustment
on sale of inventory
|
|
710
|
|
3,816
|
Fair value adjustment
of warrants measured at fair value and derivative assets
|
|
(4,547)
|
|
(5,892)
|
Depreciation of
property, plant and equipment
|
|
494
|
|
2,530
|
Amortization of
intangible assets
|
|
1,329
|
|
1,834
|
Depreciation of
right-of-use assets
|
|
442
|
|
1,504
|
Goodwill
impairment
|
|
-
|
|
107,854
|
Impairment of property,
plant and equipment
|
|
-
|
|
2,277
|
Impairment of
intangible assets
|
|
-
|
|
3,067
|
Impairment of
right-of-use assets
|
|
-
|
|
1,914
|
Finance expenses,
net
|
|
3,678
|
|
6,226
|
Deferred tax benefit,
net
|
|
(200)
|
|
(1,851)
|
Share-based
payment
|
|
316
|
|
3,284
|
Revaluation of other
receivable
|
|
-
|
|
4,191
|
Restructuring
expenses
|
|
-
|
|
8,773
|
|
|
|
|
|
|
|
2,222
|
|
138,974
|
Changes in working
capital:
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in
trade receivables, net
|
|
(2,719)
|
|
1,215
|
Decrease (increase) in
other accounts receivable
|
|
(353)
|
|
3,419
|
Decrease in biological
assets, net of fair value adjustments
|
|
-
|
|
522
|
Decrease (increase) in
inventories, net of fair value adjustments
|
|
4,844
|
|
(641)
|
Increase (decrease) in
trade payables
|
|
(4,652)
|
|
8,020
|
Increase (decrease) in
employee benefit liabilities, net
|
|
(204)
|
|
14
|
Increase (decrease) in
other accounts payable and accrued expenses
|
|
265
|
|
(3,324)
|
|
|
|
|
|
|
|
(2,819)
|
|
9,225
|
|
|
|
|
|
Taxes paid
|
|
(552)
|
|
(470)
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(7,857)
|
|
(10,123)
|
|
|
|
|
|
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
|
|
|
Nine months
ended
September
30,
|
|
|
2023
|
|
2022
|
|
|
Unaudited
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
$
(553)
|
|
$(1,386)
|
Proceeds from sales of
property, plant and equipment
|
|
-
|
|
210
|
Proceeds from loans
receivable
|
|
-
|
|
350
|
|
|
|
|
|
Net cash used in
investing activities
|
|
$
(553)
|
|
$(826)
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of share capital, net of issuance costs
|
|
$
1,688
|
|
$
3,174
|
Proceeds from exercise
of options
|
|
-
|
|
335
|
Proceeds from issuance
of Warrants
|
|
6,585
|
|
-
|
Repayment of lease
liability
|
|
(435)
|
|
(1,075)
|
Payment of lease
liability interest
|
|
(44)
|
|
(1,262)
|
(Repayment) proceeds
from bank loan and credit facilities, net
|
|
(1,109)
|
|
2,510
|
Interest
paid
|
|
(163)
|
|
(774)
|
Proceeds from factoring
of checks receivables
|
|
2,932
|
|
-
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
9,454
|
|
2,908
|
|
|
|
|
|
Effect of foreign
exchange on cash and cash equivalents
|
|
(2,189)
|
|
(1,879)
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
(1,145)
|
|
(9,920)
|
Cash and cash
equivalents at beginning of the period
|
|
2,449
|
|
13,903
|
|
|
|
|
|
Cash and cash
equivalents at end of the period
|
|
$
1,304
|
|
$
3,983
|
|
|
|
|
|
Supplemental disclosure
of non-cash activities:
|
|
|
|
|
|
|
|
|
|
Right-of-use asset
recognized with corresponding lease liability
|
|
$
49
|
|
$
269
|
Issuance of shares in
payment of purchase consideration liability
|
|
$
-
|
|
$
3,062
|
Issuance of shares and
warrants in payment of debt settlement to a non-independent
director of the company
|
|
$
1,061
|
|
$
-
|
|
|
|
|
|
The accompanying notes
are an integral part of the interim condensed consolidated
financial statements.
|
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SOURCE IM Cannabis Corp.