- Fiscal Year 2021 revenues increased 242% year-over-year to
a record of over $54 million
- Q4 2021 revenues increased 309% year-over-year and 39%
compared to Q3 2021
- Sequential revenue growth and gross margin improvement
expected in Q1 2022
TORONTO, and GLIL YAM, Israel,
March 31, 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 and fiscal year ended December
31, 2021. All amounts are reported in Canadian dollars
unless otherwise stated.
Q4 and Full Year 2021 Financial Summary
(CAD, in
millions)
|
Q4
2021
|
Q4
2020
|
Change
(%)
|
FY
2021
|
FY
2020
|
Change
(%)
|
Revenues
|
$20.0
|
$4.9
|
309%
|
$54.3
|
$15.9
|
242%
|
Gross
Profit[1]
|
$3.8
|
$2.8
|
36%
|
$11.9
|
$8.8
|
35%
|
Adjusted
EBITDA[2]
|
($8.3)
|
($2.4)
|
N/A
|
($22.0)
|
($4.9)
|
N/A
|
Management Commentary
"Our revenue growth of 242% to a record of over $54 million in 2021 is a direct result of
executing on our strategy to build a world-class operating platform
for the premium cannabis market," said Oren
Shuster, Chief Executive Officer of IMC. "The network of
pharmacies we have acquired in Israel, which includes the country's largest
online pharmacy business, supports a tech-enabled expansion of our
patient base to fortify our position as one of the leading retail
medical cannabis providers in the country. In Canada, our premium WAGNERS brand and
ultra-premium Highland Grow continue to gain market share, with
retail sales in Ontario increasing
over 50% in Q4 2021 as compared to Q3 2021[3]. With continuous
improvements in yields and quality, we have both the capacity and
the desired quality attributes to support our discerning customer
and patient needs in our addressable markets.
"By leveraging our new trade centre in Israel, cultivation facilities in Canada, and state-of-the-art logistics hub in
Germany, we can efficiently move
product across our global platform and realize the full benefits of
our holistic supply chain. This established infrastructure, when
combined with our regulatory expertise and deep understanding of
evolving market trends, have positioned IMC for long-term growth as
the industry continues to mature.
"Looking forward, we expect revenues in the first quarter to
accelerate sequentially and year-over-year, setting the stage for a
robust year for IMC. As we see the increasing benefits from our
integrated global platform materialize, we expect to achieve
positive cash flow and adjusted EBITDA in the second quarter. We
are focused on unifying our brands under the same high standards
that we have always prioritized, which we believe will contribute
to IMC's leadership position in the premium cannabis industry while
ultimately driving sustainable value for our shareholders,"
concluded Shuster.
Preliminary Q1 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 Q1 2022 revenue and gross margin to increase
sequentially. The Company expects to release Q1 2022
financial results on or around May 16,
2022.
Recent Company Highlights
- 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 ("IMCA").
- Completed the acquisition of Revoly Trading and Marketing Ltd.,
dba Vironna ("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 centre with an IMC-GDP license that provides
medical cannabis storage, distribution services and logistics
solutions for cannabis companies and pharmacies in Israel.
- Completed the acquisition of 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 activities, including
Israel's largest retail and online pharmacy business.
- Focus Medical Herbs Ltd. ("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. Subsequent
to Q4 2021, the WAGNERS brand was launched in Israel.
- Announced the anticipated 2022 launch of WAGNERS brand in the
rapidly evolving German medical cannabis market.
Q4 and Full Year 2021 Financial Results
- Revenues were $20.0 million Q4
2021, representing an increase of 309% from Q4 2020 and 35%
sequentially. Revenues in 2021 were $54.3
million, representing an increase of 242% from 2020. Total
dried flower sold for the year ended December 31, 2021 was 8,410kg at an average
selling price of $4.90 per gram,
compared to 2,586kg for the same period in 2020 at an average
selling price of $5.75 per gram,
derived from the lower average selling price per gram and higher
sale volumes the Company gained from its acquisitions of Trichome
and MYM.
- Gross profit, before fair value adjustments, was $3.8 million in Q4 2021 compared to $2.8 million in Q4 2020. Gross profit, before
fair value adjustments, was $11.9
million in 2021 compared to $8.8
million in 2020. Gross profit was temporarily impacted in Q4
2021 by COVID-19 restrictions in Canada and Israel, which delayed third party
manufacturing and disrupted labor and supply chains.
- General and administrative expenses were $11.5 million in Q4 2021 compared to $4.2 million in Q4 2020. General and
administrative expenses were $32.2
million in 2021 compared to $11.5
million in 2020.
- Selling and marketing expenses were $3.8
million in Q4 2021 compared to $1.4
million in Q4 2020. Selling and marketing expenses were
$8.9 million in 2021 compared to
$3.8 million in 2020.
- Adjusted EBITDA 2 was $(8.3)
million in Q4 2021 compared to $(2.4)
million in Q4 2020. Adjusted EBITDA was $(22.0) million in 2021 compared to $(4.9) million in 2020.
- Net loss was $12.5 million in Q4
2021 compared to a net loss of $20.0
million in Q4 2020. Net loss was $18.5 million in 2021 compared to a net loss of
$28.7 million in 2020.
- Basic and diluted loss per share in Q4 2021 of $0.19 compared to basic and diluted loss per
share of $0.13 in Q4 2020.
- Basic and diluted loss per share in 2021 were $0.31 and $0.66,
respectively, compared to basic and diluted loss per share of
$0.74 in 2020.
- Cash and cash equivalents totaled $13.9
million at December 31, 2021,
compared to $8.9 million at
December 31, 2020.
The complete audited consolidated financial statements of the
Company and related management's discussion and analysis for the
financial years ended December 31,
2021 and 2020, will be available under the Company's SEDAR
profile at www.sedar.com.
Q4 and Full Year 2021 Conference Call
Date: Thursday, March 31, 2022
Time: 9:00 a.m. Eastern time
(6:00 a.m. Pacific time)
U.S./Canada Dial-in: 1-855-327-6837
Israel Dial-in: 1-809-458-327
Germany Dial-in: 0-800-180-1954
International Dial-in: 1-631-891-4304
Conference ID: 10018676
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 Wednesday, April 27, 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 10018676. 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 its commercial relationship
with Focus Medical, which cultivates, 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 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 Regarding Preliminary Financial
Information
The financial information presented in this press release is
based on preliminary, unaudited financial statements prepared by
management, for the first quarter ended March 31, 2022 (the "Q1 Financial
Statements"). Accordingly, such financial information may be
subject to change. All financial information contained in this news
release is qualified in its entirety with reference to the
Company's unaudited financial statements for the first quarter
ended March 31, 2022, which will be
filed on the Company's SEDAR profile at www.sedar.com on or around
May 16, 2022. While the Company does
not expect there to be any material changes to the financial
information presented in this press release, to the extent that it
is inconsistent with the information contained in the Q1 Financial
Statements, the financial information contained in this news
release shall be deemed to be modified or superseded by such Q1
Financial Statements. The making of a modifying or superseding
statement shall not be deemed an admission for any purposes that
the modified or superseded statement, when made, constituted a
misrepresentation for purposes of applicable securities laws.
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
network of Israeli pharmacies and its tech-enabled expansion of its
patient base, its position as a leading medical cannabis provider
in Israel, the capacity and
quality attributes of the Company's products to support growth in
addressable markets, drivers of the Company's long-term growth,
anticipated revenue and gross margin, sequential improvement and
positive cash flow in the first quarter of 2022, the integration of
the Company's global platform, the anticipated closing date of the
convertible debenture financing and the Company's strategic
plans.
Forward-looking information is based on assumptions that may
prove to be incorrect, including but not limited to the ability of
the Company to execute its business plan and the continued growth
of the medical and/or recreational cannabis markets in the
countries in which the Company operates or intends to operate, the
Company maintaining "de facto" control over Focus Medical in
accordance with IFRS 10, Focus Medical maintaining its existing
Israeli medical cannabis propagation and cultivation licenses and
the expected decriminalization and/or legalization of adult-use
recreational cannabis in Israel.
The Company considers these assumptions to be reasonable in the
circumstances. However, forward-looking information is subject to
business and economic risks and uncertainties and other factors
that could cause actual results of operations to differ materially
from those expressed or implied in the forward-looking information.
Such risks include, without limitation: any failure of the Company
to maintain "de facto" control over Focus Medical, Focus Medical
maintaining its existing Israeli medical cannabis propagation and
cultivation licenses; any determination that the Company is
directly engaging in the Israeli medical cannabis market; the
ability of the Company to comply with applicable government
regulations in a highly regulated industry; unexpected changes in
governmental policies and regulations affecting the production,
distribution, manufacture, import, export or use of medical and/or
recreational cannabis, as applicable, in Israel, Canada and Germany; any unexpected failure of any of
Focus Medical, TJAC or MYM to maintain in good standing or renew
all required licenses, permits or authorizations to conduct
cannabis activities in their respective jurisdictions; the ability
of the Company, its subsidiaries and Focus Medical to maintain
primary and ancillary business licenses, permits and approvals; the
Company and Focus Medical having to rely on third party cannabis
producers to supply Adjupharm and Focus Medical with product to
successfully fulfill previously announced sales agreements and
purchase commitments; any unexpected failure of any of Focus
Medical, Adjupharm, Trichome or MYM to maintain in good standing or
renew all required licenses, permits or authorizations to conduct
cannabis activities in their respective jurisdictions; reliance on
the Company's commercial facilities in Germany and Canada and Focus Medical's commercial
facilities in Israel to conduct
medical cannabis activities and any unexpected failure of the
Company, its subsidiaries or Focus Medical to maintain such
commercial facilities in good standing with all applicable
regulations, including all required licenses and permits; any
adverse consequences as a result of certain legal proceedings
initiated by Israeli municipal authorities against Focus Medical,
Oren Shuster, and certain other
shareholders and stakeholders of Focus Medical (the
"Construction Proceedings"); unexpected disruptions to the
operations and businesses of the Company and/or Focus Medical as a
result of the COVID-19 global pandemic or other disease outbreaks
including a resurgence in the number of cases of COVID-19, and the
ongoing uncertainty that could result in restrictions to contain
the virus being re-imposed or imposed on a more strict basis,
including restrictions on movement and businesses; unexpected
consequences that may arise if Focus Medical were to lose its
designation as an essential service in the State of Israel during any current or
resurgent COVID-19 outbreak; the extent to which COVID-19 impacts
the global economy; the success of new COVID-19 workplace policies
and the ability of people to return to workplaces inconsistent
public opinion and perception regarding the use of cannabis;
perceived effects of medical cannabis products; conflict in
Eastern Europe; and the Company's
ability to maintain or improve the brand position of the IM
Cannabis brand in the Israeli medical cannabis markets.
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. 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 estimated
revenues and gross margin contained in this press release are
reasonable as of the date hereof and 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 estimates are considered future-oriented financial
outlooks and financial information (collectively, "FOFI") under
applicable securities laws. These estimates 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.
|
For the year ended
December 31,
|
For the three
months ended December 31,
|
|
2021*
|
|
2020
|
2021*
|
|
2020
|
Operating
Loss
|
$(38,389)
|
|
$(8,245)
|
$(11,722)
|
|
$(6,383)
|
Depreciation &
Amortization
|
$6,004
|
|
$930
|
$2,400
|
|
$258
|
EBITDA
|
$(32,385)
|
|
$(7,315)
|
$(9,322)
|
|
$(6,125)
|
IFRS Biological
assets fair value adjustments, net
|
$1,586
|
|
$(1,659)
|
$(538)
|
|
$(2,284)
|
Share-based
payments
|
$7,471
|
|
$3,382
|
$2,117
|
|
$1,251
|
Non-recurring costs
related to the RTO
|
-
|
|
-
|
-
|
|
-
|
Costs related to the
NASDAQ listing
|
$1,296
|
|
$175
|
$35
|
|
$175
|
Other Non-recurring
costs
|
-
|
|
$520
|
$(570)
|
|
$(5)
|
Adjusted EBITDA
(Non-IFRS)1
|
$(22,032)
|
|
$(4,897)
|
$(8,278)
|
|
$(2,420)
|
|
|
|
|
|
|
|
|
|
*Acquisition costs, in the amount of $4,359 and $32 for
the twelve and three months ended December
31, 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 twelve and
three months ended December 31, 2021,
would have been $(17,673) and
$(8,246), respectively.
|
For the year ended
December 31,
|
For the three
months ended December 31,
|
Net cash provided by
(used in):
|
2021
|
|
2020
|
2021
|
|
2020
|
Operating activities
|
$(34,372)
|
|
$(7,919)
|
$4,762
|
|
$(535)
|
Investing activities
|
$(9,012)
|
|
$(4,075)
|
$(7,082)
|
|
$(838)
|
Financing activities
|
$48,731
|
|
$6,740
|
$2,794
|
|
$502
|
Effect
of foreign exchange
|
$(329)
|
|
$213
|
$(3,687)
|
|
$19
|
Increase (Decrease)
in cash
|
$5,018
|
|
$(5,041)
|
$(3,213)
|
|
$(852)
|
|
|
|
|
|
|
|
|
|
Company Contact:
Maya Lustig
Director, Investor & Public Relations
IM Cannabis
+972-54-677-8100
maya.l@imcannabis.com
Investor Relations:
Brooks Hamilton
Director
MZ Group – MZ North America
+1 949-546-6326
IMCC@mzgroup.us
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
Canadian Dollars
in thousands
|
|
|
|
|
December
31,
|
|
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
13,903
|
|
$
8,885
|
Restricted
deposit
|
|
|
1
|
|
18
|
Trade
receivables
|
|
|
16,711
|
|
5,501
|
Advances to
suppliers
|
|
|
2,300
|
|
3,602
|
Other accounts
receivable
|
|
|
14,481
|
|
689
|
Investments and
financial instruments
|
|
|
3,129
|
|
-
|
Loans
receivable
|
|
|
2,708
|
|
-
|
Biological
assets
|
|
|
1,687
|
|
78
|
Inventories
|
|
|
29,391
|
|
8,370
|
|
|
|
|
|
|
|
|
|
84,311
|
|
27,143
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
30,268
|
|
5,532
|
Investments
|
|
|
2,429
|
|
2,341
|
Derivative
assets
|
|
|
14
|
|
-
|
Right-of-use assets,
net
|
|
|
18,162
|
|
935
|
Deferred tax assets,
net
|
|
|
16
|
|
769
|
Intangible assets,
net
|
|
|
30,885
|
|
1,092
|
Goodwill
|
|
|
121,303
|
|
304
|
|
|
|
|
|
|
|
|
|
203,077
|
|
10,973
|
|
|
|
|
|
|
Total assets
|
|
|
$
287,388
|
|
$
38,116
|
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
Canadian Dollars
in thousands
|
|
|
|
|
December
31,
|
|
|
|
2021
|
|
2020
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
|
|
$
13,989
|
|
$
2,605
|
Bank loans
|
|
|
9,502
|
|
-
|
Other accounts payable
and accrued expenses
|
|
|
20,143
|
|
3,497
|
Accrued purchase
consideration liabilities
|
|
|
6,039
|
|
-
|
Current maturities of
operating lease liabilities
|
|
|
1,554
|
|
167
|
|
|
|
|
|
|
|
|
|
51,227
|
|
6,269
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
Warrants measured at
fair value
|
|
|
6,022
|
|
16,540
|
Operating lease
liabilities
|
|
|
17,820
|
|
823
|
Long-term
loans
|
|
|
392
|
|
-
|
Employee benefit
liabilities, net
|
|
|
391
|
|
371
|
Deferred tax
liability
|
|
|
6,591
|
|
1,503
|
|
|
|
|
|
|
|
|
|
31,216
|
|
19,237
|
|
|
|
|
|
|
Total
liabilities
|
|
|
82,443
|
|
25,506
|
|
|
|
|
|
|
EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE COMPANY:
|
|
|
|
|
|
Share capital and
premium
|
|
|
237,677
|
|
37,040
|
Treasury
Stock
|
|
|
(660)
|
|
-
|
Translation
reserve
|
|
|
2,614
|
|
1,229
|
Reserve from
share-based payment transactions
|
|
|
12,348
|
|
5,829
|
Accumulated
deficit
|
|
|
(50,743)
|
|
(33,001)
|
|
|
|
|
|
|
Total equity
attributable to shareholders of the Company
|
|
|
201,236
|
|
11,097
|
Non-controlling
interests
|
|
|
3,709
|
|
1,513
|
|
|
|
|
|
|
Total equity
|
|
|
204,945
|
|
12,610
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
|
$
287,388
|
|
$
38,116
|
CONSOLIDATED
STATEMENTS OF PROFIT OR LOSS
|
AND OTHER
COMPREHENSIVE INCOME
|
Canadian Dollars
in thousands
|
|
|
|
|
Year
ended
December
31,
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
Revenues
|
|
|
$
54,300
|
|
$
15,890
|
Cost of
revenues
|
|
|
42,418
|
|
7,081
|
|
|
|
|
|
|
Gross profit before
fair value adjustments
|
|
|
11,882
|
|
8,809
|
|
|
|
|
|
|
Fair value
adjustments:
|
|
|
|
|
|
Unrealized change in
fair value of biological assets
|
|
|
7,210
|
|
11,781
|
Realized fair value
adjustments on inventory sold in the year
|
|
|
(8,796)
|
|
(10,122)
|
Total fair value
adjustments
|
|
|
(1,586)
|
|
1,659
|
Gross profit after fair
value adjustments
|
|
|
10,296
|
|
10,468
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
32,219
|
|
11,549
|
Selling and marketing
expenses
|
|
|
8,995
|
|
3,782
|
Share-based
compensation
|
|
|
7,471
|
|
3,382
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
48,685
|
|
18,713
|
|
|
|
|
|
|
Operating
loss
|
|
|
(38,389)
|
|
(8,245)
|
|
|
|
|
|
|
Finance
income
|
|
|
22,024
|
|
277
|
Finance
expenses
|
|
|
(1,648)
|
|
(20,504)
|
|
|
|
|
|
|
Finance income
(expense), net
|
|
|
20,376
|
|
(20,227)
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
(18,013)
|
|
(28,472)
|
Income tax
expense
|
|
|
505
|
|
262
|
|
|
|
|
|
|
Net Loss
|
|
|
(18,518)
|
|
(28,734)
|
|
|
|
|
|
|
Other comprehensive
income that will not be reclassified to profit or
loss in subsequent periods:
|
|
|
|
|
|
Remeasurement gain
(loss) on defined benefit plans
|
|
|
21
|
|
(30)
|
Exchange differences
on translation to presentation currency
|
|
|
858
|
|
1,144
|
|
|
|
|
|
|
Total other
comprehensive income that will not be reclassified to profit
or loss in subsequent periods
|
|
|
879
|
|
1,114
|
|
|
|
|
|
|
Other comprehensive
income that will be reclassified to profit or loss
in subsequent periods:
|
|
|
|
|
|
Adjustments arising
from translating financial statements of foreign
operation
|
|
|
530
|
|
(124)
|
|
|
|
|
|
|
Total other
comprehensive income that will be reclassified to profit
or loss in subsequent periods
|
|
|
530
|
|
(124)
|
|
|
|
|
|
|
Total other
comprehensive income
|
|
|
1,409
|
|
990
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
|
$
(17,109)
|
|
$
(27,744)
|
CONSOLIDATED
STATEMENTS OF PROFIT OR LOSS
|
AND OTHER
COMPREHENSIVE INCOME
|
Canadian Dollars
in thousands, except per share data
|
|
|
|
|
Year
ended
December
31,
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
Net loss attributable
to:
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
$
(17,763)
|
|
$
(28,698)
|
Non-controlling
interests
|
|
|
(755)
|
|
(36)
|
|
|
|
|
|
|
|
|
|
$
(18,518)
|
|
$
(28,734)
|
|
|
|
|
|
|
Total comprehensive
income (loss) attributable to:
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
(16,357)
|
|
(27,808)
|
Non-controlling
interests
|
|
|
(752)
|
|
64
|
|
|
|
|
|
|
|
|
|
$
(17,109)
|
|
$
(27,744)
|
|
|
|
|
|
|
Net loss per share
attributable to equity holders of the Company:
|
|
|
|
|
|
Basic
|
|
|
$
(0.31)
|
|
$
(0.74)
|
Diluted
|
|
|
$
(0.66)
|
|
$
(0.74)
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
Canadian Dollars
in thousands
|
|
|
|
Year
ended
December
31,
|
|
|
2021
|
|
2020
|
Cash provided from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(18,518)
|
|
$
(28,734)
|
|
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
Unrealized gain on
changes in fair value of biological assets
|
|
(7,210)
|
|
(11,781)
|
Fair value adjustment
on sale of inventory
|
|
8,796
|
|
10,122
|
Fair value adjustment
on Warrants, Investments, and Accounts Receivable
|
|
(21,638)
|
|
20,155
|
Depreciation of
property, plant and equipment
|
|
3,021
|
|
690
|
Amortization of
intangible assets
|
|
1,158
|
|
31
|
Depreciation of
right-of-use assets
|
|
1,550
|
|
209
|
Impairment of
goodwill
|
|
275
|
|
-
|
Finance income,
net
|
|
1,262
|
|
72
|
Deferred tax
benefit
|
|
278
|
|
(66)
|
Share-based payments
expenses
|
|
7,471
|
|
3,382
|
Share based acquisition
costs related to business combination
|
|
807
|
|
-
|
|
|
|
|
|
|
|
(4,230)
|
|
22,814
|
Changes in non-cash
working capital:
|
|
|
|
|
Increase in trade
receivables, net
|
|
(6,602)
|
|
(3,534)
|
Increase in other
accounts receivable and advances to suppliers
|
|
845
|
|
(1,029)
|
Decrease in biological
assets, net of fair value adjustments
|
|
6,412
|
|
11,771
|
Increase in
inventories, net of fair value adjustments
|
|
(19,707)
|
|
(12,729)
|
Increase in trade
payables
|
|
5,573
|
|
2,135
|
Changes in employee
benefit liabilities, net
|
|
28
|
|
59
|
Increase in other
accounts payable and accrued expenses
|
|
2,661
|
|
1,929
|
|
|
|
|
|
|
|
(10,790)
|
|
(1,398)
|
|
|
|
|
|
Taxes paid
|
|
(834)
|
|
(601)
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(34,372)
|
|
(7,919)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(4,578)
|
|
(2,617)
|
Proceeds from loans
receivable
|
|
7,796
|
|
-
|
Purchase of intangible
assets
|
|
(17)
|
|
(93)
|
Acquisition of
subsidiaries
|
|
(12,536)
|
|
-
|
Investments in
associates
|
|
(13)
|
|
(1,347)
|
Proceeds from sale of
investment
|
|
319
|
|
-
|
Proceeds from
(investment in) restricted deposits
|
|
17
|
|
(18)
|
|
|
|
|
|
Net cash used in
investing activities
|
|
$
(9,012)
|
|
$
(4,075)
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
Canadian Dollars
in thousands
|
|
|
|
Year
ended
December
31,
|
|
|
2021
|
|
2020
|
Cash provided by
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of share capital, net of issuance costs
|
|
$
28,131
|
|
$
-
|
Proceeds from issuance
of warrants measured at fair value
|
|
11,222
|
|
-
|
Proceeds from exercise
of warrants and compensation options
|
|
3,682
|
|
6,378
|
Proceeds from exercise
of options
|
|
133
|
|
612
|
Repayment of lease
liability
|
|
(633)
|
|
(182)
|
Repayment of lease
liability interest
|
|
(1,347)
|
|
(68)
|
Proceeds from bank
loan
|
|
7,804
|
|
-
|
Interest paid in
respect of loans
|
|
(261)
|
|
-
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
48,731
|
|
6,740
|
|
|
|
|
|
Effect of foreign
exchange on cash and cash equivalents
|
|
(329)
|
|
213
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
5,018
|
|
(5,041)
|
Cash and cash
equivalents at beginning of year
|
|
8,885
|
|
13,926
|
|
|
|
|
|
Cash and cash
equivalents at end of year
|
|
$
13,903
|
|
$
8,885
|
|
|
|
|
|
Supplemental disclosure
of non-cash activities:
|
|
|
|
|
|
|
|
|
|
Right-of-use asset
recognized with corresponding lease liability
|
|
$
1,678
|
|
$
107
|
Conversion of warrant
and compensation options into common shares
|
|
$
611
|
|
$
3,873
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
Canadian Dollars
in thousands
|
|
|
Schedule A -
Acquisition of TFC:
|
The subsidiary's
assets and liabilities at date of acquisition:
|
|
|
|
|
Working capital
(excluding cash and cash equivalents)
|
|
$
9,427
|
|
|
Investments
|
|
319
|
|
|
Property, plant and
equipment
|
|
15,193
|
|
|
Right of use
assets
|
|
15,037
|
|
|
Lease
liability
|
|
(15,037)
|
|
|
Intangible
assets
|
|
6,458
|
|
|
Goodwill
|
|
67,269
|
|
|
Common shares issued
upon the acquisition
|
|
(99,028)
|
|
|
|
|
|
|
|
|
|
$
(362)
|
|
|
|
|
Schedule B -
Acquisition of Panaxia:
|
The assets and
liabilities at date of acquisition:
|
|
|
|
|
Inventory
|
|
$
19
|
|
|
Accrued purchase
consideration liability
|
|
(126)
|
|
|
Investments
|
|
2,837
|
|
|
Property, plant and
equipment
|
|
88
|
|
|
Intangible
assets
|
|
776
|
|
|
Goodwill
|
|
3,240
|
|
|
|
|
|
|
|
|
|
$
6,834
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule C -
Acquisition of MYM:
The subsidiary's
assets and liabilities at date of acquisition:
|
|
Working capital
(excluding cash and cash equivalents)
|
|
$
4,471
|
|
|
Loan
payables
|
|
(915)
|
|
|
Property, plant and
equipment and right of use assets
|
|
6,735
|
|
|
Lease
liability
|
|
(873)
|
|
|
Deferred tax
liability
|
|
(4,061)
|
|
|
Intangible
assets
|
|
17,200
|
|
|
Goodwill
|
|
39,932
|
|
|
Common shares issued
upon the acquisition
|
|
(62,620)
|
|
|
|
|
|
|
|
|
|
$
(131)
|
|
|
|
|
Schedule D -
Acquisition of Pharm Yarok:
|
The subsidiary's
assets and liabilities at date of acquisition:
|
|
|
|
|
Working capital deficit
(excluding cash and cash equivalents)
|
|
$
(646)
|
|
|
Accrued purchase
consideration liability
|
|
(1,332)
|
|
|
Property, plant and
equipment
|
|
1,145
|
|
|
Long-term
loans
|
|
(1,042)
|
|
|
Deferred tax
liability
|
|
(224)
|
|
|
Intangible
assets
|
|
974
|
|
|
Goodwill
|
|
4,294
|
|
|
|
|
|
|
|
|
|
$
3,169
|
|
|
|
|
Schedule E -
Acquisition of Vironna:
|
The subsidiary's
assets and liabilities at date of acquisition:
|
|
|
|
|
Working capital
(excluding cash and cash equivalents)
|
|
$
44
|
|
|
Accrued purchase
consideration liability
|
|
(1,855)
|
|
|
Property, plant and
equipment
|
|
210
|
|
|
Deferred tax
liability
|
|
(532)
|
|
|
Intangible
assets
|
|
2,316
|
|
|
Goodwill
|
|
2,250
|
|
|
Non-controlling
interest
|
|
(1,026)
|
|
|
|
|
|
|
|
|
|
$
1,407
|
|
|
|
|
Schedule F -
Acquisition of Oranim:
|
The subsidiary's
assets and liabilities at date of acquisition:
|
|
|
|
|
Working capital deficit
(excluding cash and cash equivalents)
|
|
$
595
|
|
|
Accrued purchase
consideration liability
|
|
(2,726)
|
|
|
Property, plant and
equipment
|
|
389
|
|
|
Right of use
assets
|
|
1,312
|
|
|
Lease
liability
|
|
(1,312)
|
|
|
Intangible
assets
|
|
2,991
|
|
|
Deferred tax
liability
|
|
(688)
|
|
|
Goodwill
|
|
2,907
|
|
|
Non-controlling
interest
|
|
(1,849)
|
|
|
|
|
|
|
|
|
|
$
1,619
|
|
|
[1] Before fair value impacts in cost of sales
[2] For an explanation of this metric, please refer to
the section of this press release titled "Non-IFRS Financial
Metrics"
3 Ontario Cannabis Store, Power
BI.
View original
content:https://www.prnewswire.com/news-releases/im-cannabis-reports-record-fourth-quarter-and-fiscal-year-2021-financial-results-and-provides-first-quarter-2022-outlook-301514748.html
SOURCE IM Cannabis Corp.