IMC remains singularly focused on accelerating the path to
profitability through active cost management and margin improvement
while maintaining sales.
TORONTO and GLIL YAM,
Israel, Aug. 14, 2023 /PRNewswire/ -- IM Cannabis Corp.
(the "Company" or "IMC") (NASDAQ: IMCC) (CSE: IMCC),
an international medical cannabis company, announced its financial
results today for the second quarter ended June 30, 2023. All amounts are reported in
Canadian dollars and compared to Q2 2022 unless otherwise
stated.
The full set of consolidated financial statements for the three
and six months ended June 30, 2023
(the "Q2 FS"), and the accompanying management's discussion
and analysis (the "Q2 MD&A"), can be accessed by
visiting the Company's website
at https://investors.imcannabis.com/, its profile pages on
SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov.
Q2 2023 Financial Highlights
- Revenues stayed stable with a 4% year-over-year increase
to $13.2 million
- 40% increase in Gross Margin
- 83% decrease in Non-IFRS Adjusted EBITDA Loss
- 33% decrease in operating expenses, a 20% decrease
compared to Q1, 2023
Management Commentary
"In Q2 2023, we continued towards our goal of sustainable
profitability," said Oren
Shuster, Chief Executive Officer of IMC. "The
rightsizing and refocusing we have been working though since Q4 of
last year, was led by the strategic decision to exit the
recreational Canadian market, allowing us to fully lean into our
heritage as one of the pioneers in the Israeli medical cannabis
market. Our extensive expertise within our highly regulated
local market, gave us a clear advantage when expanding into
Germany, another highly regulated
medical market. The strategic pivot to focus on the two
largest national medical markets is clearly reflected within our
organization post restructure. I believe this is the cornerstone
for our success and stability within these two similar
markets."
"Active cost and margin management was a key focus of Q2,
accelerating our to move towards sustainable profitability, while
maintaining sales," said Itay
Vago, Chief Financial Officer of IMC. "The actions we
took since exiting the Canadian market last year and the associated
restructure, have significantly improved our gross margin and
reduced our total operating expenses, leading to a substantial
decrease in our non-IFRS Adjusted EBITDA Loss."
Operational Highlights
IMC Israel:
- Our position as #1 in the premium market was furthered through
the launch of LOT 420 with two new high THC strains.
- We moved into the midrange market in Israel with the launch of PICOS, small,
super premium flowers. The launch portfolio is comprised of
four high THC flowers.
IMC Germany:
- We have started to take advantage of our fully
licensed EU-GMP packing facility and our GDP logistics center
to drive an additional revenue stream, offering cannabis services
to the other players within the German cannabis market. We
onboarded four new customers within the first two quarters of
2023.
Q2 2023 Financial Results
- Revenues for the second quarter of 2023 were
$13.2 million compared to
$12.7 million in the second quarter
of 2022, an increase of 4%.
- Gross Margin, before fair value
adjustments, in the second quarter of 2023 was 28%,
compared to 20% in the second quarter of 2022,
an increase of 40%.
- Non-IFRS Adjusted EBITDA Loss in the second quarter
of 2023 was $0.499 million,
compared to an Adjusted EBITDA Loss of $3 million in the
second quarter of 2022, a decrease of 83%. The decrease
is mainly attributable to improved performance of the Company's
gross margin and a reduction in general and administrative
expenses, such as cost reduction, cost efficiencies and other
corporate expense reductions.
- Total Operating Expenses in the second
quarter of 2023 were $5.2 million,
compared to $7.8 million in the
second quarter of 2022, a decrease of 33%. Most of the
decline can be attributed to restructuring that took place in
2022.
- Total Dried Flower sold in the second quarter of
2023 was approximately 2,128kg with an average selling price of
$5.04 per gram compared to
approximately 1,592kg in the second quarter of 2022 with an average
selling price of $7.27 per gram. The
decrease in average selling price was caused by increased
competition within the retail segment.
- Gross Profit for the second quarter of 2023 was
$3.5 million, compared to
$2.2 million in the second quarter of
2022, an increase of 57%. 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
second quarter of 2023 were $2.4
million, compared to $3.3
million in the second quarter of 2022,
a decrease of 28%. 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 second
quarter of 2023 were $2.6 million,
compared to $3.1 million in the
second quarter of 2022, a decrease of 16%.
- Operating Loss in the second quarter of
2023 was $1.8 million, compared
to $5.6 million in the second quarter
of 2022, a decrease of 69%.
- Net Loss from Continuing Operations in the second
quarter of 2023 was $3.7
million, remains with no change to a loss of $3.7 million in the second quarter of
2022, driven mostly by higher gross margin and
reduction in operating expenses and offset by finance income in the
second quarter of 2022.
- Basic Loss per Share from Continuing Operations in
the second quarter of 2023 was $(0.26), compared to a loss of $(0.49) per share in the second quarter of
2022.
- Diluted Loss per Share from Continuing
Operations in the second quarter of 2023 was $(0.26), compared to a loss of $(0.89) per share in the second quarter of
2022.
- Cash and Cash Equivalents as of June 30, 2023 were $1.3
million, compared to $2.4
million in December 31,
2022.
- Total Assets as of June 30,
2023 were $55.8 million,
compared to $60.7 million in
December 31, 2022, a decrease
of 8%. The decrease is mainly attributed to reduced cash and
cash equivalents and to inventory.
- Total Liabilities as of June 30, 2023 were $34.2
million, compared to $36.9 in
December 31, 2022, a decrease
of approximately 7%. The decrease was mainly due to the
reduction in trade payables.
The complete non- audited interim condensed consolidated
financial statements of the Company and related management's
discussion and analysis for the three months ended June 30, 2023, will be available under the
Company's SEDAR+ profile at www.sedarplus.ca and will be
available on EDGAR at www.sec.gov/edgar.
The quarterly figures provided in the Q2 FS and the accompanying
Q2 MD&A, include some immaterial updates and
adjustments to the Company's previously filed unaudited interim
financial statements for the first quarter of the year ended
December 31, 2023 ("Q1 2023"),
see note 1 under the heading Summary of Quarterly Results in the Q2
MD&A. The updated figures provided in the Q2 FS and Q2 MD&A
that cover the Q1 2023 period supersede and replace the financial
information for Q1 2023 filed on May 15,
2023.
Q2 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.
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 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. 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 Israel and Germany; achieving profitability and
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, estimated
cost reductions and maintaining 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; 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
and war, conflict and civil unrest in Eastern Europe and the Middle East.
Please see the other risks, uncertainties and factors set out
under the heading "Risk Factors" in the Company's annual
information form 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. 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.
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.
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
|
|
|
|
|
|
June
30,
2023
|
|
December
31,
2022
|
|
|
Note
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
1,321
|
|
$
2,449
|
Trade
receivables
|
|
|
|
9,701
|
|
8,684
|
Advances to
suppliers
|
|
|
|
1,492
|
|
1,631
|
Other accounts
receivable
|
|
|
|
3,400
|
|
3,323
|
Inventories
|
|
|
|
14,484
|
|
16,585
|
|
|
|
|
|
|
|
|
|
|
|
30,398
|
|
32,672
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
5,235
|
|
5,221
|
Investments in
affiliates
|
|
|
|
2,244
|
|
2,410
|
Right-of-use assets,
net
|
|
|
|
1,457
|
|
1,929
|
Deferred tax assets,
net
|
|
|
|
749
|
|
763
|
Intangible assets,
net
|
|
|
|
6,572
|
|
7,910
|
Goodwill
|
|
|
|
9,095
|
|
9,771
|
|
|
|
|
|
|
|
|
|
|
|
25,352
|
|
28,004
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
55,750
|
|
$
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
|
|
|
|
|
|
June
30,
2023
|
|
December
31,
2022
|
|
|
Note
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Trade
payables
|
|
|
|
$ 9,381
|
|
$ 15,312
|
Bank loans and credit
facilities
|
|
|
|
11,477
|
|
9,246
|
Other accounts payable
and accrued expenses
|
|
|
|
4,786
|
|
6,013
|
Accrued purchase
consideration liabilities
|
|
|
|
1,865
|
|
2,434
|
Current maturities of
operating lease liabilities
|
|
|
|
596
|
|
814
|
|
|
|
|
|
|
|
|
|
|
|
28,105
|
|
33,819
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Warrants measured at
fair value
|
|
3
|
|
3,689
|
|
8
|
Operating lease
liabilities
|
|
|
|
830
|
|
1,075
|
Long-term
loans
|
|
|
|
379
|
|
399
|
Employee benefit
liabilities, net
|
|
|
|
128
|
|
246
|
Deferred tax
liability, net
|
|
|
|
1,081
|
|
1,332
|
|
|
|
|
|
|
|
|
|
|
|
6,107
|
|
3,060
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
34,212
|
|
36,879
|
|
|
|
|
|
|
|
EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE COMPANY:
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
Share capital and
premium
|
|
|
|
248,798
|
|
245,776
|
Translation
reserve
|
|
|
|
1,097
|
|
1,283
|
Reserve from
share-based payment transactions
|
|
|
|
14,617
|
|
15,167
|
Accumulated
deficit
|
|
|
|
(243,597)
|
|
(239,574)
|
|
|
|
|
|
|
|
Total equity
attributable to equity holders of the Company
|
|
|
|
20,915
|
|
22,652
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
623
|
|
1,145
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
21,538
|
|
23,797
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
|
|
$
55,750
|
|
$ 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
|
|
|
|
Six months
ended
June
30,
|
|
Three months
ended
June
30,
|
|
|
2023
|
|
2022(*)
|
|
2023
|
|
2022(*)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
25,736
|
|
$ 25,704
|
|
$
13,207
|
|
$ 12,703
|
Cost of
revenues
|
|
18,759
|
|
20,023
|
|
9,473
|
|
10,108
|
Gross profit before
fair value adjustments
|
|
6,977
|
|
5,681
|
|
3,734
|
|
2,595
|
|
|
|
|
|
|
|
|
|
Fair value
adjustments:
|
|
|
|
|
|
|
|
|
Unrealized change in
fair value of biological assets
|
|
-
|
|
(315)
|
|
-
|
|
-
|
Realized fair value
adjustments on inventory sold in the period
|
|
(617)
|
|
(760)
|
|
(278)
|
|
(394)
|
Total fair value
adjustments
|
|
(617)
|
|
(1,075)
|
|
(278)
|
|
(394)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
6,360
|
|
4,606
|
|
3,456
|
|
2,201
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
5,563
|
|
7,284
|
|
2,389
|
|
3,337
|
Selling and marketing
expenses
|
|
5,427
|
|
5,581
|
|
2,622
|
|
3,120
|
Restructuring
expenses
|
|
617
|
|
4,383
|
|
334
|
|
636
|
Share-based
compensation
|
|
121
|
|
1,842
|
|
(137)
|
|
732
|
Total operating
expenses
|
|
11,728
|
|
19,090
|
|
5,208
|
|
7,825
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
5,368
|
|
14,484
|
|
1,752
|
|
5,624
|
|
|
|
|
|
|
|
|
|
Finance
income
|
|
3,474
|
|
6,113
|
|
-
|
|
3,227
|
Finance
expense
|
|
(2,853)
|
|
(3,530)
|
|
(2,114)
|
|
(2,197)
|
Finance income
(expenses), net
|
|
621
|
|
2,583
|
|
(2,114)
|
|
1,030
|
|
|
|
|
|
|
|
|
|
Loss from disposal of
investment
|
|
-
|
|
114
|
|
-
|
|
114
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(4,747)
|
|
(12,015)
|
|
(3,866)
|
|
(4,708)
|
Income tax
benefit
|
|
(175)
|
|
(1,232)
|
|
(160)
|
|
(1,007)
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
(4,572)
|
|
(10,783)
|
|
(3,706)
|
|
(3,701)
|
|
|
|
|
|
|
|
|
|
Net loss from
discontinued operations
|
|
-
|
|
(18,936)
|
|
-
|
|
(15,277)
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(4,572)
|
|
(29,719)
|
|
(3,706)
|
|
(18,978)
|
|
|
|
|
|
|
|
|
|
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
|
|
(661)
|
|
(2,942)
|
|
(99)
|
|
(1,150)
|
|
|
|
|
|
|
|
|
|
Total other
comprehensive income that will not be reclassified to
profit or loss in subsequent periods
|
|
(625)
|
|
(2,942)
|
|
(99)
|
|
(1,150)
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income that will be reclassified to profit or
loss in subsequent periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments arising
from translating financial statements of
foreign operation
|
|
466
|
|
1,203
|
|
311
|
|
345
|
|
|
|
|
|
|
|
|
|
Total other
comprehensive income that will be reclassified to
profit or loss in subsequent
periods:
|
|
466
|
|
1,203
|
|
311
|
|
345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss)
|
|
(159)
|
|
(1,739)
|
|
212
|
|
(805)
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
$ (4,731)
|
|
$
(31,458)
|
|
$ (3,494)
|
|
$
(19,783)
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
|
AND OTHER
COMPREHENSIVE INCOME (UNAUDITED)
|
Canadian Dollars in
thousands, except per share data
|
|
|
|
|
|
Six months
ended
June
30,
|
|
Three months
ended
June
30,
|
|
|
|
|
2023
|
|
2022(*)
|
|
2023
|
|
2022(*)
|
|
|
Note
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to:
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
|
$
(4,059)
|
|
$ (28,117)
|
|
$
(3,459)
|
|
$
(18,665)
|
Non-controlling
interests
|
|
|
|
(513)
|
|
(1,602)
|
|
(247)
|
|
(313)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(4,572)
|
|
$
(29,719)
|
|
$
(3,706)
|
|
$
(18,978)
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss attributable to:
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
|
$
(4,209)
|
|
$
(29,727)
|
|
$
(3,250)
|
|
$
(19,437)
|
Non-controlling
interests
|
|
|
|
(522)
|
|
(1,731)
|
|
(244)
|
|
(346)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(4,731)
|
|
$
(31,458)
|
|
$
(3,494)
|
|
$ (19,783)
|
Net income (loss) per
share attributable to equity
holders of the Company:
|
|
6
|
|
|
|
|
|
|
|
|
Basic loss per share
(in CAD)
|
|
|
|
$
(0.33)
|
|
$
(4.05)
|
|
$
(0.26)
|
|
$
(2.72)
|
Diluted loss per share
(in CAD)
|
|
|
|
$
(0.33)
|
|
$
(4.82)
|
|
$
(0.26)
|
|
$
(3.12)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to equity holders
of the Company from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share
(in CAD)
|
|
|
|
$
(0.33)
|
|
$
(1.32)
|
|
$
(0.26)
|
|
$
(0.49)
|
Diluted loss per share
(in CAD)
|
|
|
|
$
(0.33)
|
|
$
(2.09)
|
|
$
(0.26)
|
|
$
(0.89)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share
attributable to equity holders of the
Company from discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share (in CAD)
|
|
|
|
-
|
|
$
(2.73)
|
|
-
|
|
$
(2.23)
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Reclassified in
respect of discontinued operations – see Note 8.
|
|
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
|
|
|
|
Six months
ended
June
30,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net loss for the
period
|
|
$ (4,572)
|
|
$ (29,719)
|
|
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
Unrealized gain on
changes in fair value of biological assets
|
|
-
|
|
(1,135)
|
Fair value adjustment
on sale of inventory
|
|
617
|
|
2,517
|
Fair value adjustment
of warrants measured at fair value and derivative assets
|
|
(3,304)
|
|
(5,697)
|
Depreciation of
property, plant and equipment
|
|
337
|
|
1,762
|
Amortization of
intangible assets
|
|
898
|
|
1,284
|
Depreciation of
right-of-use assets
|
|
352
|
|
1,014
|
Finance expenses,
net
|
|
2,683
|
|
6,527
|
Deferred tax benefit,
net
|
|
(220)
|
|
(1,836)
|
Share-based
payment
|
|
121
|
|
2,658
|
Revaluation of other
receivable
|
|
-
|
|
3,818
|
Loss from disposal of
investments
|
|
-
|
|
114
|
Restructuring
expenses
|
|
-
|
|
8,791
|
|
|
|
|
|
|
|
1,484
|
|
19,817
|
Changes in working
capital:
|
|
|
|
|
|
|
|
|
|
Increase in trade
receivables, net
|
|
(2,428)
|
|
(4,518)
|
Decrease (increase) in
other accounts receivable
|
|
(2,572)
|
|
556
|
Decrease in biological
assets, net of fair value adjustments
|
|
-
|
|
569
|
Decrease (increase) in
inventories, net of fair value adjustments
|
|
1,484
|
|
(570)
|
Increase (decrease) in
trade payables
|
|
(5,078)
|
|
3,916
|
Decrease in employee
benefit liabilities, net
|
|
(106)
|
|
(182)
|
Increase (decrease) in
other accounts payable and accrued expenses
|
|
(992)
|
|
(337)
|
|
|
|
|
|
|
|
(9,692)
|
|
(566)
|
|
|
|
|
|
Taxes paid
|
|
(432)
|
|
(462)
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(13,212)
|
|
(10,930)
|
|
|
|
|
|
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
|
|
|
|
Six months
ended
June
30,
|
|
|
2023
|
|
2022
|
|
|
Unaudited
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(553)
|
|
(1,076)
|
Proceeds from sales of
property, plant and equipment
|
|
-
|
|
201
|
Proceeds from loans
receivable
|
|
-
|
|
350
|
Investments in
associate
|
|
-
|
|
(114)
|
|
|
|
|
|
Net cash used in
investing activities
|
|
$
(553)
|
|
$
(639)
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of share capital, net of issuance costs
|
|
$
1,688
|
|
$
-
|
Proceeds from exercise
of options
|
|
-
|
|
335
|
Proceeds from issuance
of Warrants
|
|
6,585
|
|
-
|
Repayment of lease
liability
|
|
(345)
|
|
(722)
|
Payment of lease
liability interest
|
|
(34)
|
|
(859)
|
(Repayment) proceeds
from bank loan and credit facilities, net
|
|
(1,060)
|
|
8,871
|
Interest
paid
|
|
(124)
|
|
(504)
|
Proceeds from factoring
of checks receivables
|
|
3,967
|
|
-
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
10,677
|
|
7,121
|
|
|
|
|
|
Effect of foreign
exchange on cash and cash equivalents
|
|
1,960
|
|
(3,594)
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
(1,128)
|
|
(8,042)
|
Cash and cash
equivalents at beginning of the period
|
|
2,449
|
|
13,903
|
|
|
|
|
|
Cash and cash
equivalents at end of the period
|
|
$
1,321
|
|
$
5,861
|
|
|
|
|
|
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
|
|
$
-
|
|
$
3,147
|
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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