TORONTO, ON and GLIL YAM, ISRAEL / ACCESSWIRE / November 15, 2021 / IM Cannabis Corp.
Our third quarter results are indicative of the embedded growth profile of our integrated MCO model.
IMC expects continued sequential revenue growth in Q4 2021 and into 2022, with recent acquisitions in Israeland Canada having been integrated, and the portfolio positioned to optimize revenue and margins across jurisdictions.
Total dried flower sold in Q3 2021 was 2,434 kg at an average selling price of $4.85 per gram compared to 981 kg for Q3 2020 at an average selling price of $5.49 per gram.
Cost of revenues for Q3 2021 were $11.5 million, compared to $2.5 million in Q3 2020, representing an increase of $9.0 million or 355%.
Gross profit was impacted primarily due to a delay in a certain shipment at TJAC that was scheduled to occur prior to quarter end but occurred at the beginning of October 2021.
The increase is mainly attributable to the growing corporate activities in Israel, Canada, and Germany, professional services derived from legal fees and other consulting services, among other, in relation to M&A processes, of $3.3 million , salaries to employees of $2.9 million, impairment of other receivables of $0.5 million and insurance costs of $0.8 million.
The increase is primarily due to the Company’s increased marketing efforts in Israel and brand launch in Germany, as well as increased distribution expenses relating to the increase in sales, full quarter consolidation of the results of Trichome Financial Corp.
Net loss for Q3 2021 was $ million in Q2 2021.
With its commitment to responsible growth and financial prudence and 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 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.
Such FOFI are provided for the purposes of presenting information about management’s current expectations and goals relating to the benefits of the Company’s and Focus Medical’s existing sales and supply agreements, the consolidation of revenue from the acquisition of MYM, the inclusion of a full quarter of revenue from the recently completed acquisition of Panaxia, the inclusion of Pharm Yarok operations in the Company’s financial results following the closing of the respective acquisitions, government authorization for the import of medical cannabis, the revenue associated with the acquisition of Vironna, increased sales and market growth in Canada through product launches by Trichome under the WAGNERS brand and by MYM’s current Canadian product portfolio, increased sales from the resumption of product shipments to Germany and the future business of the Company.
This press release includes reference to “EBITDA”, “Adjusted EBITDA” and “Gross Margin”, which are non-International Financial Reporting Standards , prior to the effect of a fair value adjustment for inventory and biological assets.