IM Cannabis Corp C.IMCC

NEWS

[Seppi2019]

https://www.stockwatch.com/News/Item?bid=Z-C%3aIMCC-2922825&symbol=IMCC&region=C

2020-06-18 08:30 ET - News Release

 

IMC Announces Focus Medical's First Import from Canada to Israel, Strengthening International Network

Canada NewsWire

TORONTO and GLIL YAM, Israel, June 18, 2020

• Strong relationships with Canadian medical cannabis industry are a strategic imperative to IMC as a global medical cannabis brand
• Focus Medical has successfully imported approximately 200kg of medical cannabis from Canada, now seven suppliers cultivating under IMC brand across Israel, Spain and Canada
• IMC brand well positioned for Israeli government decriminalization reforms

^* Currency is in CAD$ unless specified otherwise

TORONTO and GLIL YAM, Israel, June 18, 2020 /CNW/ - IM Cannabis Corp. (the "Company" or "IMC") (CSE:IMCC), one of the world's pioneering medical cannabis companies with operations in Israel and across Europe, is pleased to announce that Focus Medical Herbs Ltd. ("Focus Medical') has successfully received its first shipment of medical cannabis from an EU-GMP certified indoor cultivator of medical cannabis based in Canada. This first shipment is comprised of approximately 200kg of medical cannabis and will be sold by Focus Medical under the IMC brand to medical patients in Israel.

IMC has now secured seven suppliers producing under the IMC brand: five domestic suppliers in Israel, and EU-GMP suppliers in both Spain and Canada. With the Israeli government now accepting applications for export of medical cannabis, this supply base could be used to fulfill the growing demand in the European market subject to regulatory approval. Furthermore, the first shipment of 200kg of medical cannabis from Focus Medical's EU-GMP supply partner in Spain is being sold under its previously announced pharmacy sales agreements and is receiving positive reviews. The next shipments from Spain to Israel are expected in the third quarter.

"We have great respect for Canada's global leadership in the development of its local and international cannabis industries. With our ambition for IMC to become a leading global brand in medical cannabis, it is a strategic imperative to have deep ties with Canadian licensed producers," said Oren Shuster, Chief Executive Officer of IMC. "The outlook for the cannabis industry in Israel is very promising following the Israeli government's announcement last week of its intention to develop a cannabis decriminalization framework with legislation to increase access to cannabis for more users across the country. We are very confident that this will result in increased demand for high quality cannabis products as more users access cannabis through legal channels as we have seen in North America. IMC remains in an excellent position to increase its brand's market share in Israel and expand its international recognition by providing cannabis products known for quality, consistency and purity."

Details of Existing Sales and Supply Agreements

IMC has previously announced that Focus Medical has signed six binding pharmacy sales agreements for the distribution of IMC-branded medical cannabis products in Israel. Focus Medical's total consolidated revenue from all binding pharmacy sales agreements in Israel is expected to be $193.5 million with an expected gross margin of 50% over the next three years. A total of 33,075kg of medical cannabis under the pharmacy sales agreements will be delivered by Focus Medical to Israeli pharmacies between Q2 2020 and 2023, of which 3,000kg of the medical cannabis is expected to reach pharmacies in 2020.

Supply of medical cannabis to fulfill these pharmacy sales agreements is now fully contracted. Focus Medical has signed and announced supply agreements with Cannomed Medical Cannabis Industries Ltd. (TASE:CNMD), Intelicanna Ltd. (TASE:INTL), Way of Life and Cannation, in addition to exclusive supply from Focus Medical and international supply from Spain and Canada.

About IM Cannabis Corp.