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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| IM Cannabis Corporation | NASDAQ:IMCC | NASDAQ | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.147 | 4.77% | 3.227 | 3.07 | 3.24 | 3.39 | 3.04 | 3.0479 | 42,204 | 19:38:02 |
|
|
|
IM CANNABIS CORP.
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
Date:
|
August 14, 2024
|
By:
|
/s/ Oren Shuster
|
|
|
|
Name:
|
Oren Shuster
|
|
|
|
Title:
|
Chief Executive Officer and Director
|
| • |
12% Revenue increase to $14.8M vs. $13.2M in Q2 2023
|
| • |
129% increase in IMC Germany sales vs. Q2 2023 to $3.5M. IMC Germany sales now make up 24% of the entire Company revenue, a growth of +105% vs Q2 2023
|
| • |
78% decrease in GM vs. 26% in Q2 2023 to 6% mainly caused by inventory clearance of $0.8M plus an accrual of $1.1M for slow moving stock
|
| • |
29% decrease in operating expenses to $3.7M vs. $5.2M in Q2 2023
|
| • |
Revenues for the second quarter of 2024 were $14.8 million compared to $13.2 million in Q2 2023, an increase of $1.6 million or 11.7%. The increase is mainly attributed to accelerated growth in
Germany revenue of $2 million net and decreased net Revenue in Israel of $0.4 million, which consists of Oranim deal cancellation effect in decreased Revenue of $2.4 million.
|
| • |
Total Dried Flower sold in Q2 2024 was approximately 2,333 kg with an average selling price of $6.09 per gram, compared to approximately 2,128kg in Q2 2023, with an average selling price of $5.04 per
gram, which is an increase of 21%.
|
| • |
Cost of revenues for Q2 2024 were $13.9 million compared to $9.5 million in Q2 2023, an increase of $4.4 million or 46.6%, mainly due to an increase in Company revenue related costs of approximately
$2.5 million, clearing of old raw materials of approximately $0.8 million and accrued for slow inventory of approximately $1.1 million.
|
| • |
Gross profit for the second quarter of 2024 was $0.8 million, compared to $3.5 million in Q2 2023, a decrease of 75.6%. The downside is attributed mainly to the clearing of old inventory, accrual for
slow moving inventory of approximately $1.9 million and slow-moving stock that was moved out at a lower price. Company fair value adjustment was $0 and $0.3 million for the Q2 2024 and Q2 2023 respectively.
|
| • |
G&A Expenses in Q2 2024 were $2.2 million, compared to $2.4 million in Q2 2023, a decrease of $0.2 million or 9.5%. The decrease in the G&A expense is attributable mainly to insurance of
approximately $0.2 million.
|
| • |
Selling and Marketing Expenses in Q2 2024 were $1.5 million, compared to $2.6 million in Q2 2023, a decrease of $1.1 million or 44% mainly due to the revocation of Oranim agreement of $0.6 million
and decrease in salaries and professional services of $0.4 million.
|
| • |
Total operating expenses in Q2 2024 were $3.7 million compared to $5.2 million in Q2 2023, a decrease of $1.5 million or of 29% mainly due to decrease in salaries of approximately $0.4 million,
insurance of $0.2 million, depreciation expenses of $0.3 million and professional services of $0.2 million.
|
| • |
Net Loss in Q2 2024 was $3.5 million, compared to $3.7 million in Q2 2023.
|
| • |
Basic and diluted Loss per Share in Q2 2024 was $0.23, compared to a loss of $0.26 per Share in Q2 2023.
|
| • |
Non-IFRS Adjusted EBITDA loss in Q2 2024 was $2.3 million, compared to an Adjusted EBITDA loss of $0.5 million in Q2 2023 a loss increase of 357%.
|
| • |
Cash and Cash Equivalents as of June 30, 2024, were $0.7 million compared to $1.8 million on December 31, 2023.
|
| • |
Total assets as of June 30, 2024, were $40.2 million, compared to $48.8 million on December 31, 2023, a decrease of $8.6 million or 17.6%.
|
| • |
Total Liabilities as of June 30, 2024, were $34.7 million, compared to $35.1 million on December 31, 2023, a decrease of $0.4 million or 1.1%.
|
|
June 30,
2024
|
December 31,
2023
|
|||||||||||
|
Note
|
(Unaudited)
|
(Audited)
|
||||||||||
|
ASSETS
|
||||||||||||
|
CURRENT ASSETS:
|
||||||||||||
|
Cash and cash equivalents
|
$
|
700
|
$
|
1,813
|
||||||||
|
Trade receivables
|
12,087
|
7,651
|
||||||||||
|
Advances to suppliers
|
788
|
936
|
||||||||||
|
Other accounts receivable
|
3,648
|
3,889
|
||||||||||
|
Inventories
|
3
|
5,719
|
9,976
|
|||||||||
|
22,942
|
24,265
|
|||||||||||
|
NON-CURRENT ASSETS:
|
||||||||||||
|
Property, plant and equipment, net
|
4,052
|
5,058
|
||||||||||
|
Investments in affiliates
|
2,284
|
2,285
|
||||||||||
|
Right-of-use assets, net
|
626
|
1,307
|
||||||||||
|
Intangible assets, net
|
3,678
|
5,803
|
||||||||||
|
Goodwill
|
6,634
|
10,095
|
||||||||||
|
17,274
|
24,548
|
|||||||||||
|
Total assets
|
$
|
40,216
|
$
|
48,813
|
||||||||
|
June 30,
2024
|
December 31,
2023
|
|||||||||||
|
Note
|
(Unaudited)
|
(Audited)
|
||||||||||
|
LIABILITIES AND EQUITY
|
||||||||||||
|
CURRENT LIABILITIES:
|
||||||||||||
|
Trade payables
|
$
|
13,877
|
$
|
9,223
|
||||||||
|
Bank loans and credit facilities
|
12,746
|
12,119
|
||||||||||
|
Other accounts payable and accrued expenses
|
4,486
|
6,218
|
||||||||||
|
Accrued purchase consideration liabilities
|
-
|
2,097
|
||||||||||
|
PUT Option liability
|
-
|
2,697
|
||||||||||
|
Convertible debt
|
2,002
|
-
|
||||||||||
|
Current maturities of operating lease liabilities
|
292
|
454
|
||||||||||
|
33,403
|
32,808
|
|||||||||||
|
NON-CURRENT LIABILITIES:
|
||||||||||||
|
Warrants measured at fair value
|
4
|
57
|
38
|
|||||||||
|
Operating lease liabilities
|
301
|
815
|
||||||||||
|
Long-term loans
|
401
|
394
|
||||||||||
|
Employee benefit liabilities, net
|
47
|
95
|
||||||||||
|
Deferred tax liability, net
|
526
|
963
|
||||||||||
|
1,332
|
2,305
|
|||||||||||
|
Total liabilities
|
34,735
|
35,113
|
||||||||||
|
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
|
5
|
|||||||||||
|
Share capital and premium
|
253,966
|
253,882
|
||||||||||
|
Translation reserve
|
1,579
|
95
|
||||||||||
|
Reserve from share-based payment transactions
|
9,673
|
9,637
|
||||||||||
|
Conversion option for convertible debt
|
327
|
-
|
||||||||||
|
Accumulated deficit
|
(258,478
|
)
|
(249,145
|
)
|
||||||||
|
Total equity attributable to equity holders of the Company
|
7,067
|
14,469
|
||||||||||
|
Non-controlling interests
|
(1,586
|
)
|
(769
|
)
|
||||||||
|
Total equity
|
5,481
|
13,700
|
||||||||||
|
Total liabilities and equity
|
$
|
40,216
|
$
|
48,813
|
||||||||
|
Six months ended
June 30,
|
Three months ended
June 30,
|
|||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Revenues
|
$
|
26,813
|
$
|
25,736
|
$
|
14,750
|
$
|
13,207
|
||||||||
|
Cost of revenues
|
24,165
|
18,759
|
13,891
|
9,473
|
||||||||||||
|
Gross profit before fair value adjustments
|
2,648
|
6,977
|
859
|
3,734
|
||||||||||||
|
Fair value adjustments:
|
||||||||||||||||
|
Realized fair value adjustments on inventory sold in the period
|
(25
|
)
|
(617
|
)
|
(15
|
)
|
(278
|
)
|
||||||||
|
Total fair value adjustments
|
(25
|
)
|
(617
|
)
|
(15
|
)
|
(278
|
)
|
||||||||
|
Gross profit
|
2,623
|
6,360
|
844
|
3,456
|
||||||||||||
|
General and administrative expenses
|
4,495
|
5,563
|
2,163
|
2,389
|
||||||||||||
|
Selling and marketing expenses
|
3,773
|
5,427
|
1,481
|
2,622
|
||||||||||||
|
Restructuring expenses
|
-
|
617
|
-
|
334
|
||||||||||||
|
Share-based compensation
|
120
|
121
|
88
|
(137
|
)
|
|||||||||||
|
Loss on deconsolidation
|
2,734
|
-
|
(19
|
)
|
-
|
|||||||||||
|
Total operating expenses
|
11,122
|
11,728
|
3,713
|
5,208
|
||||||||||||
|
Operating loss
|
8,499
|
5,368
|
2,869
|
1,752
|
||||||||||||
|
Finance income (expenses), net
|
(1,927
|
)
|
621
|
(1,426
|
)
|
(2,114
|
)
|
|||||||||
|
Loss before income taxes
|
(10,426
|
)
|
(4,747
|
)
|
(4,295
|
)
|
(3,866
|
)
|
||||||||
|
Income tax benefit
|
(950
|
)
|
(175
|
)
|
(839
|
)
|
(160
|
)
|
||||||||
|
Net loss
|
(9,476
|
)
|
(4,572
|
)
|
(3,456
|
)
|
(3,706
|
)
|
||||||||
|
Other comprehensive income (loss) that will not be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||
|
Remeasurement gain on defined benefit plan
|
67
|
36
|
-
|
-
|
||||||||||||
|
Exchange differences on translation to presentation currency
|
1,517
|
(661
|
)
|
187
|
(99
|
)
|
||||||||||
|
Total other comprehensive income that will not be reclassified to profit or loss in subsequent periods
|
1,584
|
(625
|
)
|
187
|
(99
|
)
|
||||||||||
|
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||
|
Adjustments arising from translating financial statements of foreign operation
|
(26
|
)
|
466
|
9
|
311
|
|||||||||||
|
Total other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods:
|
(26
|
)
|
466
|
9
|
311
|
|||||||||||
|
Total other comprehensive income (loss)
|
1,558
|
(159
|
)
|
196
|
212
|
|||||||||||
|
Total comprehensive loss
|
$
|
(7,918
|
)
|
$
|
(4,731
|
)
|
$
|
(3,260
|
)
|
$
|
(3,494
|
)
|
||||
|
Six months ended
June 30,
|
Three months ended
June 30,
|
|||||||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||||||
|
Note
|
(Unaudited)
|
|||||||||||||||||||
|
Net loss attributable to:
|
||||||||||||||||||||
|
Equity holders of the Company
|
$
|
(8,652
|
)
|
$
|
(4,059
|
)
|
$
|
(3,029
|
)
|
$
|
(3,459
|
)
|
||||||||
|
Non-controlling interests
|
(824
|
)
|
(513
|
)
|
(427
|
)
|
(247
|
)
|
||||||||||||
|
$
|
(9,476
|
)
|
$
|
(4,572
|
)
|
$
|
(3,456
|
)
|
$
|
(3,706
|
)
|
|||||||||
|
Total comprehensive loss attributable to:
|
||||||||||||||||||||
|
Equity holders of the Company
|
$
|
(7,101
|
)
|
$
|
(4,209
|
)
|
$
|
(2,840
|
)
|
$
|
(3,250
|
)
|
||||||||
|
Non-controlling interests
|
(817
|
)
|
(522
|
)
|
(420
|
)
|
(244
|
)
|
||||||||||||
|
$
|
(7,918
|
)
|
$
|
(4,731
|
)
|
$
|
(3,260
|
)
|
$
|
(3,494
|
)
|
|||||||||
|
Net income (loss) per share attributable to equity holders of the Company:
|
6
|
|||||||||||||||||||
|
Basic loss per share (in CAD)
|
$
|
(0.65
|
)
|
$
|
(0.33
|
)
|
$
|
(0.23
|
)
|
$
|
(0.26
|
)
|
||||||||
|
Diluted loss per share (in CAD)
|
$
|
(0.65
|
)
|
$
|
(0.33
|
)
|
$
|
(0.23
|
)
|
$
|
(0.26
|
)
|
||||||||
|
Earnings (loss) per share attributable to equity holders of the Company:
|
||||||||||||||||||||
|
Basic loss per share (in CAD)
|
$
|
(0.65
|
)
|
$
|
(0.33
|
)
|
$
|
(0.23
|
)
|
$
|
(0.26
|
)
|
||||||||
|
Diluted loss per share (in CAD)
|
$
|
(0.65
|
)
|
$
|
(0.33
|
)
|
$
|
(0.23
|
)
|
$
|
(0.26
|
)
|
||||||||
|
Share
Capital and premium
|
Reserve from share-based payment transactions
|
Conversion option for convertible debt
|
Translation reserve
|
Accumulated deficit
|
Total
|
Non-controlling interests
|
Total
equity
|
|||||||||||||||||||||||||
|
Balance as of January 1, 2024
|
$
|
253,882
|
$
|
9,637
|
$
|
-
|
$
|
95
|
$
|
(249,145
|
)
|
$
|
14,469
|
$
|
(769
|
)
|
$
|
13,700
|
||||||||||||||
|
Net loss
|
-
|
-
|
-
|
-
|
(8,652
|
)
|
(8,652
|
)
|
(824
|
)
|
(9,476
|
)
|
||||||||||||||||||||
|
Total other comprehensive loss
|
-
|
-
|
-
|
1,484
|
67
|
1,551
|
7
|
1,558
|
||||||||||||||||||||||||
|
Total comprehensive loss
|
-
|
-
|
-
|
1,484
|
(8,585
|
)
|
(7,101
|
)
|
(817
|
)
|
(7,918
|
)
|
||||||||||||||||||||
|
Net proceeds of convertible debt allocated to conversion option
|
-
|
-
|
327
|
-
|
-
|
327
|
-
|
327
|
||||||||||||||||||||||||
|
Other comprehensive income Classification
|
-
|
-
|
-
|
-
|
(748
|
)
|
(748
|
)
|
-
|
(748
|
)
|
|||||||||||||||||||||
|
Share-based compensation
|
-
|
120
|
-
|
-
|
-
|
120
|
-
|
120
|
||||||||||||||||||||||||
|
Forfeited options
|
84
|
(84
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
|
Balance as of June 30, 2024
|
$
|
253,966
|
$
|
9,673
|
$
|
327
|
$
|
1,579
|
$
|
(258,478
|
)
|
$
|
7,067
|
$
|
(1,586
|
)
|
$
|
5,481
|
||||||||||||||
|
Share
Capital and premium
|
Reserve from share-based payment transactions
|
Translation reserve
|
Accumulated deficit
|
Total
|
Non-controlling interests
|
Total
equity
|
||||||||||||||||||||||
|
Balance as of January 1, 2023
|
$
|
245,776
|
$
|
15,167
|
$
|
1,283
|
$
|
(239,574
|
)
|
$
|
22,652
|
$
|
1,145
|
$
|
23,797
|
|||||||||||||
|
Net loss
|
-
|
-
|
-
|
(4,059
|
)
|
(4,059
|
)
|
(513
|
)
|
(4,572
|
)
|
|||||||||||||||||
|
Total other comprehensive loss
|
-
|
-
|
(186
|
)
|
36
|
(150
|
)
|
(9
|
)
|
(159
|
)
|
|||||||||||||||||
|
Total comprehensive loss
|
-
|
-
|
(186
|
)
|
(4,023
|
)
|
(4,209
|
)
|
(522
|
)
|
(4,731
|
)
|
||||||||||||||||
|
Issuance of common shares
|
2,351
|
-
|
-
|
-
|
2,351
|
-
|
2,351
|
|||||||||||||||||||||
|
Share-based compensation
|
-
|
121
|
-
|
-
|
121
|
-
|
121
|
|||||||||||||||||||||
|
Forfeited options
|
671
|
(671
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
|
Balance as of June 30, 2023
|
$
|
248,798
|
$
|
14,617
|
$
|
1,097
|
$
|
(243,597
|
)
|
$
|
20,915
|
$
|
623
|
$
|
21,538
|
|||||||||||||
|
Six months ended
June 30,
|
||||||||
|
2024
|
2023
|
|||||||
|
Cash provided by operating activities:
|
||||||||
|
Net income (loss) for the period
|
$
|
(9,476
|
)
|
$
|
(4,572
|
)
|
||
|
Adjustments for non-cash items:
|
||||||||
|
Fair value adjustment on sale of inventory
|
25
|
617
|
||||||
|
Fair value adjustment on Warrants, investments and accounts receivable
|
20
|
(3,304
|
)
|
|||||
|
Interest recorded in respect of the convertible debt
|
115
|
-
|
||||||
|
Depreciation of property, plant and equipment
|
226
|
337
|
||||||
|
Amortization of intangible assets
|
769
|
898
|
||||||
|
Depreciation of right-of-use assets
|
196
|
352
|
||||||
|
Finance expenses, net
|
1,792
|
2,683
|
||||||
|
Deferred tax liability, net
|
(107
|
)
|
(220
|
)
|
||||
|
Share-based payment
|
120
|
121
|
||||||
|
Loss from deconsolidation of subsidiary
|
2,764
|
-
|
||||||
|
Net proceeds of convertible debt allocated to conversion option
|
327
|
-
|
||||||
|
6,247
|
1,484
|
|||||||
|
Changes in working capital:
|
||||||||
|
Increase in trade receivables
|
(5,821
|
)
|
(2,428
|
)
|
||||
|
Increase in other accounts receivable and advances to suppliers
|
(256
|
)
|
(2,572
|
)
|
||||
|
Decrease in inventories, net of fair value adjustments
|
3,424
|
1,484
|
||||||
|
Decrease (increase) in trade payables
|
7,309
|
(5,078
|
)
|
|||||
|
Changes in employee benefit liabilities, net
|
(47
|
)
|
(106
|
)
|
||||
|
Increase in other accounts payable and accrued expenses
|
(892
|
)
|
(992
|
)
|
||||
|
3,717
|
(9,692
|
)
|
||||||
|
Taxes paid
|
(120
|
)
|
(432
|
)
|
||||
|
Net cash provided (used) in operating activities
|
368
|
(13,212
|
)
|
|||||
|
Cash flows from investing activities:
|
||||||||
|
Purchase of property, plant and equipment
|
(52
|
)
|
(553
|
)
|
||||
|
Deconsolidation of subsidiary
|
(346
|
)
|
-
|
|||||
|
Net cash used in investing activities
|
$
|
(398
|
)
|
$
|
(553
|
)
|
||
|
Six months ended
June 30,
|
||||||||
|
2024
|
2023
|
|||||||
|
Cash flow from financing activities:
|
||||||||
|
Proceeds from issuance of share capital, net of issuance costs
|
$
|
-
|
$
|
1,688
|
||||
|
Proceeds from issuance of warrants
|
-
|
6,585
|
||||||
|
Repayment of lease liability
|
(197
|
)
|
(345
|
)
|
||||
|
Interest paid - lease liability
|
(25
|
)
|
(34
|
)
|
||||
|
Repayment of bank loan and credit facilities
|
(2,392
|
)
|
(1,060
|
)
|
||||
|
Cash paid for interest
|
(1,054
|
)
|
(124
|
)
|
||||
|
Proceeds from discounted checks
|
4,311
|
3,967
|
||||||
|
Net cash provided by financing activities
|
643
|
10,677
|
||||||
|
Effect of foreign exchange on cash and cash equivalents
|
(1,726
|
)
|
1,960
|
|||||
|
Decrease in cash and cash equivalents
|
(1,113
|
)
|
(1,128
|
)
|
||||
|
Cash and cash equivalents at beginning of the period
|
1,813
|
2,449
|
||||||
|
Cash and cash equivalents at end of the period
|
$
|
700
|
$
|
1,321
|
||||
|
Supplemental disclosure of non-cash activities:
|
||||||||
|
Right-of-use asset recognized with corresponding lease liability
|
$
|
40
|
$
|
49
|
||||
|
Issuance of shares in payment of debt settlement to a non-independent director of the company
|
$
|
-
|
$
|
1,061
|
||||
Page | ||
F-2 - F-3 | ||
F-4 - F-5 | ||
F-6 | ||
F-7 - F-8 | ||
F-9 - F-29 |
|
June 30,
2024
|
December 31,
2023
|
||||||||||
|
Note
|
(Unaudited)
|
(Audited)
|
|||||||||
|
ASSETS
|
|||||||||||
|
CURRENT ASSETS:
|
|||||||||||
|
Cash and cash equivalents
|
$
|
|
$
|
|
|||||||
|
Trade receivables
|
|
|
|||||||||
|
Advances to suppliers
|
|
|
|||||||||
|
Other accounts receivable
|
|
|
|||||||||
|
Inventories
|
3
|
|
|
||||||||
|
|
|
||||||||||
|
NON-CURRENT ASSETS:
|
|||||||||||
|
Property, plant and equipment, net
|
|
|
|||||||||
|
Investments in affiliates
|
|
|
|||||||||
|
Right-of-use assets, net
|
|
|
|||||||||
|
Intangible assets, net
|
|
|
|||||||||
|
Goodwill
|
|
|
|||||||||
|
|
|
||||||||||
|
Total assets
|
$
|
|
$
|
|
|||||||
|
June 30,
2024
|
December 31,
2023
|
||||||||||
|
Note
|
(Unaudited)
|
(Audited)
|
|||||||||
|
LIABILITIES AND EQUITY
|
|||||||||||
|
CURRENT LIABILITIES:
|
|||||||||||
|
Trade payables
|
$
|
|
$
|
|
|||||||
|
Bank loans and credit facilities
|
|
|
|||||||||
|
Other accounts payable and accrued expenses
|
|
|
|||||||||
|
Accrued purchase consideration liabilities
|
|
|
|||||||||
|
PUT Option liability
|
|
|
|||||||||
|
Convertible debt
|
|
|
|||||||||
|
Current maturities of operating lease liabilities
|
|
|
|||||||||
|
|
|
||||||||||
|
NON-CURRENT LIABILITIES:
|
|||||||||||
|
Warrants measured at fair value
|
4
|
|
|
||||||||
|
Operating lease liabilities
|
|
|
|||||||||
|
Long-term loans
|
|
|
|||||||||
|
Employee benefit liabilities, net
|
|
|
|||||||||
|
Deferred tax liability, net
|
|
|
|||||||||
|
|
|
||||||||||
|
Total liabilities
|
|
|
|||||||||
|
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
|
5
|
||||||||||
|
Share capital and premium
|
|
|
|||||||||
|
Translation reserve
|
|
|
|||||||||
|
Reserve from share-based payment transactions
|
|
|
|||||||||
|
Conversion option for convertible debt
|
|
|
|||||||||
|
Accumulated deficit
|
(
|
)
|
(
|
)
|
|||||||
|
Total equity attributable to equity holders of the Company
|
|
|
|||||||||
|
Non-controlling interests
|
(
|
)
|
(
|
)
|
|||||||
|
Total equity
|
|
|
|||||||||
|
Total liabilities and equity
|
$
|
|
$
|
|
|||||||
|
Six months ended
June 30,
|
Three months ended
June 30,
|
|||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Cost of revenues
|
|
|
|
|
||||||||||||
|
Gross profit before fair value adjustments
|
|
|
|
|
||||||||||||
|
Fair value adjustments:
|
||||||||||||||||
|
Realized fair value adjustments on inventory sold in the period
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
|
Total fair value adjustments
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
|
Gross profit
|
|
|
|
|
||||||||||||
|
General and administrative expenses
|
|
|
|
|
||||||||||||
|
Selling and marketing expenses
|
|
|
|
|
||||||||||||
|
Restructuring expenses
|
|
|
|
|
||||||||||||
|
Share-based compensation
|
|
|
|
(
|
)
|
|||||||||||
|
Loss on deconsolidation
|
|
|
(
|
)
|
|
|||||||||||
|
Total operating expenses
|
|
|
|
|
||||||||||||
|
Operating loss
|
|
|
|
|
||||||||||||
|
Finance income (expenses), net
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
|
Loss before income taxes
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
|
Income tax benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
|
Net loss
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
|
Other comprehensive income (loss) that will not be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||
|
Remeasurement gain on defined benefit plan
|
|
|
|
|
||||||||||||
|
Exchange differences on translation to presentation currency
|
|
(
|
)
|
|
(
|
)
|
||||||||||
|
Total other comprehensive income that will not be reclassified to profit or loss in subsequent periods
|
|
(
|
)
|
|
(
|
)
|
||||||||||
|
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||
|
Adjustments arising from translating financial statements of foreign operation
|
(
|
)
|
|
|
|
|||||||||||
|
Total other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods:
|
(
|
)
|
|
|
|
|||||||||||
|
Total other comprehensive income (loss)
|
|
(
|
)
|
|
|
|||||||||||
|
Total comprehensive loss
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
|
Six months ended
June 30,
|
Three months ended
June 30,
|
||||||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
||||||||||||||||
|
Note
|
(Unaudited)
|
||||||||||||||||||
|
Net loss attributable to:
|
|||||||||||||||||||
|
Equity holders of the Company
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
|
Non-controlling interests
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||
|
Total comprehensive loss attributable to:
|
|||||||||||||||||||
|
Equity holders of the Company
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
|
Non-controlling interests
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||
|
Net income (loss) per share attributable to equity holders of the Company:
|
7
|
||||||||||||||||||
|
Basic loss per share (in CAD)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
|
Diluted loss per share (in CAD)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
|
Earnings (loss) per share attributable to equity holders of the Company:
|
|||||||||||||||||||
|
Basic loss per share (in CAD)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
|
Diluted loss per share (in CAD)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
|
Share
Capital and premium
|
Reserve from share-based payment transactions
|
Conversion option for convertible debt
|
Translation reserve
|
Accumulated deficit
|
Total
|
Non-
controlling interests
|
Total
equity
|
|||||||||||||||||||||||||
|
Balance as of January 1, 2024
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||||
|
Net loss
|
|
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
|
Total other comprehensive loss
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Total comprehensive loss
|
|
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
|
Net proceeds of convertible debt allocated to conversion option
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Other comprehensive income Classification
|
|
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
|
Share-based compensation
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Forfeited options
|
|
(
|
)
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
Balance as of June 30, 2024
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||||
|
Share
Capital and premium
|
Reserve from share-based payment transactions
|
Translation reserve
|
Accumulated deficit
|
Total
|
Non-
controlling interests
|
Total
equity
|
||||||||||||||||||||||
|
Balance as of January 1, 2023
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||||
|
Net loss
|
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||||||||
|
Total other comprehensive loss
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||||||||
|
Total comprehensive loss
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||
|
Issuance of common shares
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Share-based compensation
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Forfeited options
|
|
(
|
)
|
|
|
|
|
|
||||||||||||||||||||
|
Balance as of June 30, 2023
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||||
|
Six months ended
June 30,
|
||||||||
|
2024
|
2023
|
|||||||
|
Cash provided by operating activities:
|
||||||||
|
Net income (loss) for the period
|
$
|
(
|
)
|
$
|
(
|
)
|
||
|
Adjustments for non-cash items:
|
||||||||
|
Fair value adjustment on sale of inventory
|
|
|
||||||
|
Fair value adjustment on Warrants, investments and accounts receivable
|
|
(
|
)
|
|||||
|
Interest recorded in respect of the convertible debt
|
|
|
||||||
|
Depreciation of property, plant and equipment
|
|
|
||||||
|
Amortization of intangible assets
|
|
|
||||||
|
Depreciation of right-of-use assets
|
|
|
||||||
|
Finance expenses, net
|
|
|
||||||
|
Deferred tax liability, net
|
(
|
)
|
(
|
)
|
||||
|
Share-based payment
|
|
|
||||||
|
Loss from deconsolidation of subsidiary
|
|
|
||||||
|
Net proceeds of convertible debt allocated to conversion option
|
|
|
||||||
|
|
|
|||||||
|
Changes in working capital:
|
||||||||
|
Increase in trade receivables
|
(
|
)
|
(
|
)
|
||||
|
Increase in other accounts receivable and advances to suppliers
|
(
|
)
|
(
|
)
|
||||
|
Decrease in inventories, net of fair value adjustments
|
|
|
||||||
|
Decrease (increase) in trade payables
|
|
(
|
)
|
|||||
|
Changes in employee benefit liabilities, net
|
(
|
)
|
(
|
)
|
||||
|
Increase in other accounts payable and accrued expenses
|
(
|
)
|
(
|
)
|
||||
|
|
(
|
)
|
||||||
|
Taxes paid
|
(
|
)
|
(
|
)
|
||||
|
Net cash provided (used) in operating activities
|
|
(
|
)
|
|||||
|
Cash flows from investing activities:
|
||||||||
|
Purchase of property, plant and equipment
|
(
|
)
|
(
|
)
|
||||
|
Deconsolidation of subsidiary
|
(
|
)
|
|
|||||
|
Net cash used in investing activities
|
$
|
(
|
)
|
$
|
(
|
)
|
||
|
Six months ended
June 30,
|
||||||||
|
2024
|
2023
|
|||||||
|
Cash flow from financing activities:
|
||||||||
|
Proceeds from issuance of share capital, net of issuance costs
|
$
|
|
$
|
|
||||
|
Proceeds from issuance of warrants
|
|
|
||||||
|
Repayment of lease liability
|
(
|
)
|
(
|
)
|
||||
|
Interest paid - lease liability
|
(
|
)
|
(
|
)
|
||||
|
Repayment of bank loan and credit facilities
|
(
|
)
|
(
|
)
|
||||
|
Cash paid for interest
|
(
|
)
|
(
|
)
|
||||
|
Proceeds from discounted checks
|
|
|
||||||
|
Net cash provided by financing activities
|
|
|
||||||
|
Effect of foreign exchange on cash and cash equivalents
|
(
|
)
|
|
|||||
|
Decrease in cash and cash equivalents
|
(
|
)
|
(
|
)
|
||||
|
Cash and cash equivalents at beginning of the period
|
|
|
||||||
|
Cash and cash equivalents at end of the period
|
$
|
|
$
|
|
||||
|
Supplemental disclosure of non-cash activities:
|
||||||||
|
Right-of-use asset recognized with corresponding lease liability
|
$
|
|
$
|
|
||||
|
Issuance of shares in payment of debt settlement to a non-independent director of the company
|
$
|
|
$
|
|
||||
IM CANNABIS CORP.
| NOTE 1:- |
GENERAL
|
| a. |
Corporate information:
|
|
NOTE 1:-
|
GENERAL (Cont.)
|
As of June 30, 2024, the amount was not received and accrued for bad debt.
| NOTE 1:- |
GENERAL (Cont.)
|
|
| NOTE 1:- |
GENERAL (Cont.)
|
| NOTE 1:- |
GENERAL (Cont.)
|
| NOTE 1:- |
GENERAL (Cont.)
|
| NOTE 1:- |
GENERAL (Cont.)
|
| NOTE 1:- |
GENERAL (Cont.)
|
| a. |
On April 17, 2024, one of the Company fully owned subsidiaries entered into a loan agreement with a non-financial institute in the amount of approximately $
|
| b. |
On April 17, 2024, IMC Holdings signed an amendment to extend the loan agreement with a non- financial institute from April 18, 2024, to April 18, 2025, of approximately $
|
| NOTE 1:- |
GENERAL (Cont.)
|
| b. |
Approval of consolidated financial statements:
|
| c. |
Definitions:
|
|
The Company, or IMCC
|
- |
IM Cannabis Corp.
|
|
The Group
|
-
|
IM Cannabis Corp., its Subsidiaries
|
|
Subsidiaries
|
-
|
Companies that are controlled by the Company (as defined in IFRS 10) and whose accounts are consolidated with those of the Company
|
|
CAD or $
|
-
|
Canadian Dollar
|
|
NIS
|
-
|
New Israeli Shekel
|
| NOTE 2:- |
SIGNIFICANT ACCOUNTING POLICIES
|
| a. |
Basis of Presentation and Measurement:
|
| 1. |
Amendments to IAS 1,"Non-Current liabilities with Covenants and Classification of Liabilities as current or non-current":
|
| 2. |
Amendment to IFRS 16, "LEASES":
|
| NOTE 2:- |
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
| 3. |
Amendments to IAS 7 and IFRS 7, "Statement of Cash Flows", and IFRS 7, "Financial Instruments: Disclosures":
|
| 4. |
IFRS 18, "Presentation and Disclosure in Financial Statements":
|
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
| b. |
Significant Accounting Judgements and Estimates:
|
| NOTE 3:- |
INVENTORIES
|
|
June 30, 2024
|
||||||||||||
|
Capitalized costs
|
Fair valuation adjustment, net
|
Carrying value
|
||||||||||
|
Work in progress:
|
||||||||||||
|
Bulk cannabis
|
$
|
|
$
|
|
$
|
|
||||||
|
Finished goods
|
||||||||||||
|
Packaged dried cannabis
|
|
|
|
|||||||||
|
Other products
|
|
|
|
|||||||||
|
Balance as of June 30, 2024
|
$
|
|
$
|
|
$
|
|
||||||
|
December 31, 2023
|
||||||||||||
|
Capitalized costs
|
Fair valuation adjustment, net
|
Carrying value
|
||||||||||
|
Work in progress:
|
||||||||||||
|
Bulk cannabis
|
$
|
|
$
|
|
$
|
|
||||||
|
Finished goods:
|
||||||||||||
|
Packaged dried cannabis
|
|
|
|
|||||||||
|
Other products
|
|
|
|
|||||||||
|
Balance as of December 31, 2023
|
$
|
|
$
|
|
$
|
|
||||||
|
NOTE 4:-
|
FINANCIAL INSTRUMENTS
|
| A. |
Financial instruments are measured either at fair value or at amortized cost. The table below lists the valuation methods used to determine fair value of each financial instrument.
|
|
Financial Instruments Measured at Fair Value
|
Fair Value Method
|
|
|
Liability for Warrants *)
Investment in Xinteza
|
Black & Scholes model (Level 3 category)
Market comparable (Level 3 category)
|
| *) |
Finance (income) expense from revaluation of Warrants measured at fair value, for the six months ended June 30, 2024 and 2023, amounted to $
The Warrants fair value as of June 30, 2024 was measured using the Black & Scholes model with the following key assumptions:
|
|
Issue date
|
||||||||||||
|
May 2023
|
February 2023
|
May 2021
|
||||||||||
|
Expected volatility
|
|
%
|
|
%
|
|
%
|
||||||
|
Share price (Canadian Dollar)
|
|
|
|
|||||||||
|
Expected life (in years)
|
|
|
|
|||||||||
|
Risk-free interest rate
|
|
%
|
|
%
|
|
%
|
||||||
|
Expected dividend yield
|
|
%
|
|
%
|
|
%
|
||||||
|
Fair value:
|
||||||||||||
|
Per Warrant (Canadian Dollar)
|
$
|
|
$
|
|
$
|
|
||||||
|
Total Warrants (Canadian Dollar in thousands)
|
$
|
|
$
|
|
$
|
|
||||||
| B. |
On May 26, 2024, the Company has closed a non-brokered private placement of Debentures of the Company. The Debentures fair value for the issuance date was measured using
Finance (income) expense in respect of the Convertible Debt for the six months ended June 30, 2024, and 2023, amounted to $
|
|
NOTE 5:-
|
EQUITY
|
| a. |
Composition of share capital:
|
|
June 30,
|
December 31,
|
|||||||||
|
2024
|
2023
|
|||||||||
|
|
Authorized
|
Issued and outstanding
|
Authorized
|
Issued and outstanding
|
||||||
|
Common Shares without par value
|
Unlimited
|
|
Unlimited
|
|
||||||
| b. |
Capital issuances:
|
|
NOTE 5:-
|
EQUITY (Cont.)
|
| c. |
Changes in issued and outstanding share capital:
|
|
Number of shares
|
||||
|
Balance as of January 1, 2024
|
|
|||
|
Issuance of Common Shares
|
|
|||
|
Balance as of June 30, 2024
|
|
|||
|
Six months ended June 30, 2024
|
||||||||
|
Number of options
|
Weighted
average
exercise price
|
|||||||
|
in CAD
|
||||||||
|
Options outstanding at the beginning of the period
|
|
$
|
|
|||||
|
Options forfeited during the period
|
|
|
||||||
|
Options outstanding at the end of the period
|
|
$
|
|
|||||
|
Options exercisable at the end of the period
|
|
$
|
|
|||||
| NOTE 6:- |
SELECTED STATEMENTS OF PROFIT OR LOSS DATA
|
|
Six months ended
June 30,
|
Three months ended
June 30,
|
|||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||
|
Salaries and related expenses
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Depreciation and amortization
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
NOTE 7:-
|
NET EARNINGS (LOSS) PER SHARE
|
|
Six months ended June 30,
|
||||||||||||||||
|
2024
|
2023
|
|||||||||||||||
|
Weighted average number of shares (in thousands)
|
Net income (loss) attributable to equity holders of the Company
|
Weighted average number of shares (in thousands)
|
Net income (loss) attributable to equity holders of the Company
|
|||||||||||||
|
For the computation of basic net earnings from continuing operations
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
||||||||
|
Effect of potential dilutive Common Shares
|
|
|
|
|
||||||||||||
|
For the computation of diluted net earnings from continuing operations
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
||||||||
|
Three months ended June 30,
|
||||||||||||||||
|
2024
|
2023
|
|||||||||||||||
|
Weighted average number of shares (in thousands)
|
Net loss attributable to equity holders of the Company
|
Weighted average number of shares (in thousands)
|
Net loss attributable to equity holders of the Company
|
|||||||||||||
|
For the computation of basic net earnings from continuing operations
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
||||||||
|
Effect of potential dilutive Common Shares
|
|
|
|
|
||||||||||||
|
For the computation of diluted net earnings from continuing operations
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
||||||||
| NOTE 8:- |
OPERATING SEGMENTS
|
| a. |
Reporting operating segments:
|
|
Israel
|
Germany
|
Adjustments
|
Total
|
|||||||||||||
|
Revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Segment gain (loss)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
||||||
|
Unallocated corporate expenses
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||
|
Total operating loss
|
$
|
(
|
)
|
|||||||||||||
|
Depreciation, amortization and impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Israel
|
Germany
|
Adjustments
|
Total
|
|||||||||||||
|
Revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Segment loss
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
|
Unallocated corporate expenses
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||
|
Total operating loss
|
$
|
(
|
)
|
|||||||||||||
|
Depreciation, amortization and impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
| NOTE 8:- |
OPERATING SEGMENTS (Cont.)
|
|
Israel
|
Germany
|
Adjustments
|
Total
|
|||||||||||||
|
Revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Segment gain (loss)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
||||||
|
Unallocated corporate expenses
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||
|
Total operating loss
|
$
|
(
|
)
|
|||||||||||||
|
Depreciation, amortization and impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Israel
|
Germany
|
Adjustments
|
Total
|
|||||||||||||
|
Revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Segment loss
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
|
Unallocated corporate expenses
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||
|
Total operating loss
|
$
|
(
|
)
|
|||||||||||||
|
Depreciation, amortization and impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
| NOTE 9:- |
DECONSOLIDATION OF ORANIM PHARMACY
|
|
April 15,
2024
|
December 31,
2023
|
|||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$
|
|
$
|
|
||||
|
Trade receivables
|
|
|
||||||
|
Other accounts receivable
|
|
|||||||
|
Inventories
|
|
|
||||||
|
|
|
|||||||
|
Non-current assets:
|
||||||||
|
Property, plant and equipment, net
|
|
|
||||||
|
Right-of-use assets, net
|
|
|
||||||
|
Intangible assets, net
|
|
|
||||||
|
Goodwill
|
|
|
||||||
|
|
|
|||||||
|
Total Assets
|
$
|
|
$
|
|
||||
|
April 15,
2024
|
December 31,
2023
|
|||||||
|
LIABILITIES
|
||||||||
|
Current liabilities:
|
||||||||
|
Trade payables
|
$
|
|
$
|
|
||||
|
Other accounts payable and accrued expenses
|
|
|||||||
|
Purchase consideration payable
|
|
|
||||||
|
Put option liability
|
|
|
||||||
|
Current maturities of operating lease liabilities
|
|
|
||||||
|
|
|
|||||||
|
Non-current liabilities:
|
||||||||
|
Lease liabilities
|
|
|
||||||
|
Deferred tax liability, net
|
|
|
||||||
|
|
|
|||||||
|
Total liabilities
|
$
|
|
$
|
|
||||
| Non controlling interest | $ | ( |
) | $ | ||||
| NOTE 10:- |
SUBSEQUENT EVENTS
|
| a. |
Short-term Loan Agreement
|
| b. |
Consolidation 2024
|
| c. |
NASDAQ Notification of Regaining Compliance
|
| EXECUTIVE SUMMARY | 4 |
| 6 |
|
| 6 |
|
| BRANDS | 8 |
| 12 |
|
| 12 |
|
| 12 | |
| 18 |
|
| 46 |
|
| RISK FACTORS | 55 |
| CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS | 61 |
|
Legal Entity
|
Jurisdiction
|
Relationship with the Company
|
|
I.M.C. Holdings Ltd. (“IMC Holdings”)
|
Israel
|
Wholly-owned subsidiary
|
|
I.M.C. Pharma Ltd. (“IMC Pharma”)
|
Israel
|
Wholly-owned subsidiary of IMC Holdings
|
|
I.M.C. Farms Israel Ltd. (“IMC Farms”)
|
Israel
|
Wholly-owned subsidiary of IMC Holdings
|
|
Focus Medical Herbs Ltd. (“Focus”)
|
Israel
|
Subsidiary of IMC Holdings *
|
|
R.A. Yarok Pharm Ltd. (“Pharm Yarok”)
|
Israel
|
Wholly-owned subsidiary of IMC Holdings
|
|
Rosen High Way Ltd. (“Rosen High Way”)
|
Israel
|
Wholly-owned subsidiary of IMC Holdings
|
|
Revoly Trading and Marketing Ltd. dba Vironna Pharm (“Vironna”)
|
Israel
|
Subsidiary of IMC Holdings
|
|
Oranim Plus Pharm Ltd. (“Oranim Plus”)**
|
Israel
|
Subsidiary of IMC Holdings
|
|
Trichome Financial Corp. (“Trichome”)***
|
Canada
|
Wholly-owned subsidiary
|
| • |
Continue building on the increasing demand and positive momentum in Israel and Germany, supported by strategic alliances with Canadian suppliers and a highly skilled sourcing team, to cement its leadership position in markets where
the Company operates.
|
| • |
Develop and execute a long-term growth plan in Germany, based on the strong sourcing infrastructure in Israel which is powered by advanced product knowledge and regulatory expertise establishing, in the Company’s view, a competitive
advantage following the April 1, 2024 legalization in Germany.
|
| • |
Increasing inventory levels to meet the rising demand in Germany and securing new suppliers and additional supply chains from Israel and other countries to ensure product availability and support our growth in Germany.
|
| • |
Properly position brands with respect to target-market, price, potency and quality, such as our IMC brand in Israel and Germany.
|
| • |
Strong focus on efficiencies and synergies as a global organization with domestic expertise in Israel and Germany.
|
| • |
High-quality, reliable supply to our customers and patients, leading to recurring sales.
|
| • |
Ongoing introduction of new Stock Keeping Unit (“SKUs”) to keep consumers and patients engaged.
|
| The Top-Shelf Collection – IMC’s premium product line, which offers indoor-grown, high-THC cannabis flowers with strains such as Or'enoz and Banjo. Inspired by the 1970’s cannabis culture in America, the Top-Shelf Collection targets the growing segment of medical patients who are cannabis culture enthusiasts. |
 |
| The WAGNERS™ brand launched in Israel in Q1 2022, with indoor-grown cannabis imported from Canada. The WAGNERS™ brand was the first international premium, indoor-grown brand introduced to the Israel cannabis market, at a competitive price point. The WAGNERS™ brand includes Cherry Jam, Rainforest Crunch and Silverback#4. |
 |
|
BLKMKT™, the Company’s second Canadian brand, super-premium product line with indoor-grown, hand-dried and hand-trimmed high-THC cannabis
flowers. The BLKMKT™ includes BLK MLK, YA HEMI, PURPLE RAIN, JEALOUSY and RAINBOW P.
|
 |
|
For the six months
ended June 30,
|
For the three months
ended June 30, |
For the Year ended
December 31, |
||||||||||||||||||
|
2024
|
2023(1)
|
2024
|
2023(1)
|
2023
|
||||||||||||||||
|
Net Revenues
|
$
|
26,813
|
$
|
25,736
|
$
|
14,750
|
$
|
13,207
|
$
|
48,804
|
||||||||||
|
Gross profit before fair value impacts in cost of sales
|
$
|
2,648
|
$
|
6,977
|
$
|
859
|
$
|
3,734
|
$
|
10,830
|
||||||||||
|
Gross margin before fair value impacts in cost of sales (%)
|
10
|
%
|
27
|
%
|
6
|
%
|
28
|
%
|
22
|
%
|
||||||||||
|
Operating Loss
|
$
|
(8,499
|
)
|
$
|
(5,368
|
)
|
$
|
(2,869
|
)
|
$
|
(1,752
|
)
|
$
|
(12,792
|
)
|
|||||
|
Loss
|
$
|
(9,476
|
)
|
$
|
(4,572
|
)
|
$
|
(3,456
|
)
|
$
|
(3,706
|
)
|
$
|
(10,228
|
)
|
|||||
|
Loss per share attributable to equity holders of the Company – Basic (in CAD)
|
$
|
(0.65
|
)
|
$
|
(0.33
|
)
|
$
|
(0.23
|
) |
$
|
(0.26
|
) |
$
|
(0.74
|
)
|
|||||
|
Loss per share attributable to equity holders of the Company - Diluted (in CAD)
|
$
|
(0.65
|
)
|
$
|
(0.33
|
)
|
$
|
(0.23
|
) |
$
|
(0.26
|
) |
$
|
(0.74
|
)
|
|||||
|
For the Six Months
Ended June 30,
|
For the Three months
ended June 30,
|
For the Year ended December 31,
|
||||||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
2023
|
||||||||||||||||
|
Average net selling price of dried flower (per Gram)
|
$
|
5.90
|
$
|
5.60
|
$
|
6.09
|
$
|
5.04
|
$
|
5.14
|
||||||||||
|
Quantity of dried flower sold (in Kilograms)
|
4,206
|
3,970
|
2,333
|
2,128
|
8,609
|
|||||||||||||||
| 1. |
The figures disclosed here for the six and three months ended June 30, 2023, encompass updates and adjustments made during Q2 2023 to the Company’s previously filed unaudited interim financial statements. The adjustments and
updates were immaterial.
|
|
Israel
|
Germany
|
Adjustments
|
Total
|
|||||||||||||||||||||||||||||
|
2024
|
2023(*)
|
2024
|
2023(*)
|
2024
|
2023(*)
|
2024
|
2023(*)
|
|||||||||||||||||||||||||
|
Revenuess
|
$
|
22,153
|
$
|
23,109
|
$
|
4,660
|
$
|
2,627
|
$
|
-
|
$
|
-
|
$
|
26,813
|
$
|
25,736
|
||||||||||||||||
|
Segment loss
|
$
|
(7,332
|
)
|
$
|
(1,842
|
)
|
$
|
351
|
$
|
(767
|
)
|
$
|
-
|
$
|
-
|
$
|
(6,981
|
)
|
$
|
(2,609
|
)
|
|||||||||||
|
Unallocated corporate expenses
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(1,518
|
)
|
$
|
(2,759
|
)
|
$
|
(1,518
|
)
|
$
|
(2,759
|
)
|
||||||||||||
|
Total operating (loss)
|
$
|
(7,332
|
)
|
$
|
(1,842
|
)
|
$
|
351
|
$
|
(767
|
)
|
$
|
(1,518
|
)
|
$
|
(2,759
|
)
|
$
|
(8,499
|
)
|
$
|
(5,368
|
)
|
|||||||||
|
Depreciation& amortization
|
$
|
1,118
|
$
|
1,509
|
$
|
73
|
$
|
78
|
$
|
-
|
$
|
-
|
$
|
1,191
|
$
|
1,587
|
||||||||||||||||
| ● |
Revenues for the six months ended June 30, 2024, and 2023 were $26,813 and $25,736, respectively, representing an increase of $1,077 or 4%. The increase is mainly attributed to accelerated growth in Germany revenue of $2,033 and
decreased Revenue in Israel of $956 net, that includes Oranim deal cancellation effect in decreased Revenue of $1,933.
Revenues for the three months ended June 30, 2024, and 2023 were $14,750 and $13,207, respectively, representing an increase of $1,543 or 12%. The increase is mainly attributed to accelerated growth in Germany revenue of $1,973 and
decreased Revenue in Israel of $430 net, that includes Oranim deal cancellation effect in decreased Revenue of $2,415.
|
| ● |
Revenues from the Israeli operation was attributed to the sale of medical cannabis through the Company’s subsidiaries and the revenues from the Israeli Pharmacies the Company owns, mostly from cannabis products.
|
| ● |
In Germany, Company revenues were attributed to the sale of medical cannabis through Adjupharm.
|
|
Less than one year
|
1 to 5 years
|
6 to 10 years
|
> 10 years
|
|||||||||||||
|
Contractual Obligations
|
$
|
13,232
|
$
|
1,095
|
-
|
-
|
||||||||||
|
Payments Due by Period
|
||||||||||||||||||||
|
Contractual Obligations
|
Total
|
Less than one year
|
1 to 3 years
|
4 to 5 years
|
After 5 years
|
|||||||||||||||
|
Debt
|
$
|
13,147
|
$
|
12,746
|
$
|
401
|
$
|
-
|
$
|
-
|
||||||||||
|
Finance Lease Obligations
|
$
|
1,180
|
$
|
486
|
$
|
694
|
$
|
-
|
$
|
-
|
||||||||||
|
Total Contractual Obligations
|
$
|
14,327
|
$
|
13,232
|
$
|
1,095
|
$
|
-
|
$
|
-
|
||||||||||
|
For the Six Months
Ended June 30,
|
For the three months
ended June 30,
|
For the Year ended December 31,
|
||||||||||||||||||
|
Net cash provided by (used in):
|
2024
|
2023
|
2024
|
2023
|
2023
|
|||||||||||||||
|
Operating activities
|
$
|
368
|
$
|
(13,212
|
)
|
$
|
1,030
|
$
|
(7,151
|
)
|
$
|
(8,075
|
)
|
|||||||
|
Investing activities
|
$
|
(398
|
)
|
$
|
(553
|
)
|
$
|
(396
|
)
|
$
|
(86
|
)
|
$
|
(1,182
|
)
|
|||||
|
Financing activities
|
$
|
643
|
$
|
10,677
|
$
|
1,495
|
$
|
4,120
|
$
|
9,417
|
||||||||||
|
Effect of foreign exchange
|
$
|
(1,726
|
)
|
$
|
1,960
|
$
|
(2,477
|
)
|
$
|
3,019
|
$
|
(796
|
)
|
|||||||
|
Increase (Decrease) in cash
|
$
|
(1,113
|
)
|
$
|
(1,128
|
)
|
$
|
(348
|
)
|
$
|
(98
|
)
|
$
|
(636
|
)
|
|||||
|
For the year ended
|
December 31,
2023 |
December 31,
2022
|
December 31,
2021
|
|||||||||
|
Revenues
|
$
|
48,804
|
$
|
54,335
|
$
|
34,053
|
||||||
|
Net Loss
|
$
|
(10,228
|
)
|
$
|
(24,922
|
)
|
$
|
(664
|
)
|
|||
|
Basic net income (Loss) per share:
|
$
|
(0.74
|
)
|
$
|
(3.13
|
)
|
$
|
0.02
|
||||
|
Diluted net income (Loss) per share:
|
$
|
(0.74
|
)
|
$
|
(3.81
|
)
|
$
|
(3.62
|
)
|
|||
|
Total assets
|
$
|
48,813
|
$
|
60,676
|
$
|
129,066
|
||||||
|
Total non-crurent liabilities
|
$
|
2,305
|
$
|
3,060
|
$
|
21,354
|
||||||
|
For the three months ended
|
June 30,
2024
|
March 31,
2024
|
December 31,
2023
|
September 30,
2023
|
||||||||||||
|
Revenues
|
$
|
14,750
|
$
|
12,063
|
$
|
10,698
|
$
|
12,370
|
||||||||
|
Net Loss
|
$
|
(3,456
|
)
|
$
|
(6,020
|
)
|
$
|
(3,520
|
)
|
$
|
(2,136
|
)
|
||||
|
Basic net income (Loss) per share:
|
$
|
(0.23
|
)
|
$
|
(0.42
|
)
|
$
|
(0.25
|
)
|
$
|
(0.16
|
)
|
||||
|
Diluted net loss per share:
|
$
|
(0.23
|
)
|
$
|
(0.42
|
)
|
$
|
(0.25
|
)
|
$
|
(0.16
|
)
|
||||
|
For the three months ended
|
June 30,
2023 |
March 31,
2023(1)
|
December 31,
2022
|
September 30,
2022
|
||||||||||||
|
Revenues
|
$
|
13,207
|
$
|
12,529
|
$
|
14,461
|
$
|
14,170
|
||||||||
|
Net income (Loss)
|
$
|
(3,706
|
)
|
$
|
(866
|
)
|
$
|
(9,650
|
)
|
$
|
(4,532
|
)
|
||||
|
Basic net income (Loss) per share:
|
$
|
(0.26
|
)
|
$
|
(0.05
|
)
|
$
|
(1.32
|
)
|
$
|
(0.06
|
)
|
||||
|
Diluted net income (Loss) per share:
|
$
|
(0.26
|
)
|
$
|
(0.05
|
)
|
$
|
(1.28
|
)
|
$
|
(0.06
|
)
|
||||
|
For the Six Months
Ended June 30,
|
For the three months
ended June 30,
|
For the Year ended December 31,
|
||||||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
2023
|
||||||||||||||||
|
Net Revenue
|
$
|
26,813
|
$
|
25,736
|
$
|
14,750
|
$
|
13,207
|
$
|
48,404
|
||||||||||
|
Cost of sales
|
$
|
(24,165
|
)
|
$
|
(18,759
|
)
|
$
|
(13,891
|
)
|
$
|
(9,473
|
)
|
$
|
(37,974
|
)
|
|||||
|
Gross profit before FV adjustments
|
$
|
2,648
|
$
|
6,977
|
$
|
859
|
$
|
3,734
|
$
|
10,830
|
||||||||||
|
Gross margin before FV adjustments (non-IFRS)
|
10
|
%
|
27
|
%
|
6
|
%
|
26
|
%
|
22
|
%
|
||||||||||
|
For the Six Months
ended June 30,
|
For the Three Months
ended June 30,
|
For the Year ended December 31,
|
||||||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
2023
|
||||||||||||||||
|
Operating Loss
|
$
|
(8,499
|
)
|
$
|
(5,368
|
)
|
$
|
(2,869
|
)
|
$
|
(1,752
|
)
|
$
|
(12,792
|
)
|
|||||
|
Depreciation & Amortization
|
$
|
1,191
|
$
|
1,587
|
$
|
511
|
$
|
778
|
$
|
2,996
|
||||||||||
|
EBITDA
|
$
|
(7,308
|
)
|
$
|
(3,781
|
)
|
$
|
(2,358
|
)
|
$
|
(974
|
)
|
$
|
(9,796
|
)
|
|||||
|
IFRS Biological assets fair value adjustments, net1
|
$
|
25
|
$
|
617
|
$
|
15
|
$
|
278
|
$
|
984
|
||||||||||
|
Share-based payments
|
$
|
120
|
$
|
121
|
$
|
88
|
$
|
(137
|
)
|
$
|
225
|
|||||||||
|
Restructuring cost 2
|
$
|
-
|
$
|
617
|
$
|
-
|
$
|
334
|
$
|
617
|
||||||||||
|
Other non-recurring costs 3
|
$
|
2,734
|
$
|
-
|
$
|
(19
|
)
|
$
|
-
|
$
|
-
|
|||||||||
|
Adjusted EBITDA (Non-IFRS)
|
$
|
(4,429
|
)
|
$
|
(2,426
|
)
|
$
|
(2,274
|
)
|
$
|
(499
|
)
|
$
|
(7,970
|
)
|
|||||
| 1. |
Losses from unrealized change in fair value of biological assets and realized fair value adjustments on inventory. See “Cost of Revenues” section of the MD&A.
|
| 2. |
Costs attributable to the Israel Restructuring and closure of Sde Avraham Farm in 2022, and to Israel reorganization plan of the company’s management and operations in 2023.
|
| 3. |
Due to revocation of the Oranim transaction dated April 16, 2024.
|
|
Less than one year
|
1 to 5 years
|
6 to 10 years
|
>10 years
|
|||||||||||||
|
Lease liabilities
|
$
|
486
|
$
|
694
|
-
|
-
|
||||||||||
|
Less than one year
|
1 to 5 years
|
6 to 10 years
|
>10 years
|
|||||||||||||
|
Lease liabilities
|
$
|
619
|
$
|
939
|
-
|
-
|
||||||||||
| 1. |
The contractual party of the Company was not the Stroakmont & Atton. The contract with Stroakmont & Atton was only concluded as a sham transaction in order to cover up a contract with a company named Uniclaro GmbH.
Therefore, Stroakmont & Atton is not the real purchaser rather than Uniclaro GmbH.
|
| 2. |
The Company allegedly placed an order with Uniclaro GmbH for a total of 4.3 million Clongene COVID-19 tests, of which Uniclaro GmbH claims to have a payment claim against the Company for a partial delivery of 380,400 Clongene
COVID-19 tests in the total amount of EUR 941,897.20. Uniclaro GmbH has assigned this alleged claim against the Company to Stroakmont & Atton Trading GmbH, and Stroakmont & Atton Trading GmbH has precautionary declared a
set-off against the Company’s claim.
|
| 1. |
Adjupharm was not sentenced. Uniclaro's lawsuit for payment of EUR 1,046,010.00 in exchange for delivery of 300,000 Clungene tests was dismissed.
|
| 2. |
Uniclaro is sentenced to pay Adjupharm EUR 53,990.00 plus interest at 5 percentage points above the German basis rate since 17.01.2023.
|
| 3. |
Uniclaro shall bear the procedural costs.
|
| • |
On April 2, 2019, IMC Holdings and Focus entered into an option agreement (the “Focus Agreement”) pursuant to which IMC Holdings acquired an option to purchase, at its sole discretion and in
compliance with Israeli cannabis regulation, all the ordinary shares held by Messrs. Shuster and Gabay held in Focus at a price equal to NIS 765.67 per ordinary share until April 2029. On November 30, 2023, IMC Holdings sent a request
letter to approve IMC Holding’s exercise of the option and on February 25, 2024, IMCA's approval was obtained. Effective February 27, 2024, IMC Holdings acquired 74% of the ordinary shares of Focus.
|
| • |
The Company is a party to Indemnification Agreement with certain directors and officers of the Company and Trichome to cover certain tax liabilities, interest and penalties arising from the Trichome Transaction. See “Risk Factors - Tax Remittance” section of the MD&A.
|
| • |
On April 17, 2024, R.A. Yarok Pharm entered into a loan agreement with a non-financial institute in the amount of NIS 3,000,000 (approximately $1,082,000). Such a loan bears interest at an annual rate of 15% and mature 12 months
from the date of issuance (the "Loan"). The Loan is secured by the following collaterals and guarantees: (a) a first-ranking floating charge over the assets of A.R. Yarok Pharm, (b) a
first-ranking fixed charge over the holdings (23.3%) of its subsidiary, IMC Holdings, of Xinteza, (c) a personal guarantee by Mr. Oren Shuster, the Company’s Chief Executive Officer and (D) a guarantee by the Company.
|
| • |
On October 12, 2023, Oren Shuster, the CEO (the "Insider") loaned an amount of NIS 500 thousand (approximately $170) to IMC Holdings. The participation of the CEO constituted a “related party
transaction”, as such term is defined in MI 61-101 and would require the Company to receive minority shareholder approval for and obtain a formal valuation for the subject matter of, the transaction in accordance with MI 61-101, prior
to the completion of such transaction. However, in completing the loan, the Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101, in each case on the basis that the
fair market value of the CEO’s loan did not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. On May 29, 2024, the Company closed a non-brokered private placement (the “Offering”) of secured convertible debentures of the Company (each, a “Debenture”) for aggregate proceeds of $2,091,977. The Insider has subscribed for an
aggregate of $237,214 of Debentures in the Offering. The Insider’s participation in the Offering (the “Insider Transaction”) is a “related party transaction” as described above.
|
| a. |
The reason for the bill-and-hold arrangement is substantive (for example, the customer has requested the arrangement);
|
| b. |
The product is identified separately as belonging to the customer;
|
| c. |
The product currently is ready for physical delivery to the customer;
|
| d. |
The Group does not have the ability to use the product by selling it or delivering it to another customer.
|
| a. |
Amendments to IAS 1,"Non-Current liabilities with Covenants and Classification of Liabilities as current or non-current":
|
| b. |
Amendment to IFRS 16, "LEASES ":
|
| c. |
Amendments to IAS 7 and IFRS 7, "Statement of Cash Flows", and IFRS 7, "Financial Instruments: Disclosures ":
|
| d. |
IFRS 18, "Presentation and Disclosure in Financial Statements":
|
| A. |
Financial instruments are measured either at fair value or at amortized cost. The table below lists the valuation methods used to determine fair value of each financial instrument.
|
|
Financial Instruments Measured at Fair Value
|
Fair Value Method
|
|
|
Warrants liability1
|
Black & Scholes model (Level 3 category)
|
|
|
Investment in affiliates
|
Market comparable (Level 3 category)
|
|
Financial Instruments Measured at
Amortized Cost |
||
|
Cash and cash equivalents, trade receivables and other account receivables
|
Carrying amount (approximates fair value due to short-term nature)
|
|
|
Loans receivable
|
Amortized cost (effective interest method)
|
|
|
Trade payables, other accounts payable and accrued expenses
|
Carrying amount (approximates fair value due to short-term nature)
|
| 1. |
Finance expense (income) include fair value adjustment of warrants, investments, and derivative assets measured at fair value, for the six months ended June 30, 2024, and 2023, amounted to $(20) and $(3,304), respectively.
|
|
Issue date
|
||||||||||||
|
May 2023
|
February 2023
|
May 2021
|
||||||||||
|
Expected volatility
|
48.43
|
%
|
48.43
|
%
|
48.43
|
%
|
||||||
|
Share price (Canadian Dollar)
|
0.63
|
0.63
|
0.63
|
|||||||||
|
Expected life (in years)
|
1.849
|
1.603
|
1.849
|
|||||||||
|
Risk-free interest rate
|
4.9
|
%
|
4.9
|
%
|
4.9
|
%
|
||||||
|
Expected dividend yield
|
0
|
%
|
0
|
%
|
0
|
%
|
||||||
|
Fair value:
|
||||||||||||
|
Per Warrant (Canadian Dollar)
|
$
|
0.014
|
$
|
0.010
|
$
|
0
|
||||||
|
Total Warrants (Canadian Dollar in thousands)
|
$
|
7
|
$
|
50
|
$
|
0
|
||||||
| B. |
Debentures are measured in fair value for the issuance date. The Debentures fair value for the issuance date was measured using 16.55% IRR and was
summarized to $1,975 of Convertible Debt and $327 of conversion option for Convertible Debt.
Finance (income) expense in respect of the Convertible Debt for the six months ended June 30, 2024, and 2023, amounted to $442 and $nil, respectively.
|
| ● |
maintenance of records in reasonable detail, that accurately and fairly reflect the transactions and dispositions of assets.
|
| ● |
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with applicable IFRS.
|
| ● |
receipts and expenditures are only being made in accordance with authorizations of management or the Board; and
|
| ● |
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial instruments.
|
| (a) |
the Company receiving economic benefits from Focus (and the terms of the contractual agreements between the Company and Focus cannot be changed without the approval of IMC Holdings);
|
| (b) |
IMC Holdings having the option to purchase the divested 74% interest in Focus held by Oren Shuster, the CEO, director and a promoter of the Company, and Rafael Gabay, a former director and a promoter of the Company.
|
| (c) |
Messrs. Shuster and Gabay each being a director of Focus (while Mr. Shuster concurrently being a CEO, director and substantial shareholder of the Company and Mr. Gabay concurrently being a substantial shareholder of the Company);
and
|
| (d) |
the Company providing management and support activities to Focus through a services agreement.
|
| ● |
the Company’s business objectives and milestones and the anticipated timing of execution.
|
| ● |
the performance of the Company’s business, strategies and operations.
|
| ● |
the Company’s intentions to expand the business, operations and potential activities of the Company.
|
| ● |
the Company’s plans to expand its sales channels, distribution, delivery and storage capacity, and reach to medical cannabis patients.
|
| ● |
the competitive conditions of the cannabis industry and the growth of medical or adult-use recreational cannabis markets in the jurisdictions in which the Company operates.
|
| ● |
the competitive conditions of the industry, including the Company’s ability to maintain or grow its market share and maintain its competitive advantages.
|
| ● |
statements relating to the Company’s commitment to responsible growth and compliance with the strictest regulatory environments.
|
| ● |
the Company’s focus on providing premium cannabis products to medical patients in the jurisdictions in which the Company conducts business and any other jurisdiction in which the Company may conduct business in the future.
|
| ● |
the Company’s plans to amplify its commercial and brand power to become a global high-quality cannabis player.
|
| ● |
the Company’s primary goal of sustainably increasing revenue in its core markets.
|
| ● |
the demand and momentum in the Company’s Israeli and Germany operations.
|
| ● |
how the Company intends to position its brands.
|
| ● |
the efficiencies and synergies of the Company as a global organization with domestic expertise in Israel and Germany.
|
| ● |
expectations that providing high-quality, reliable supply to the Company’s customers and patients will lead to recurring sales.
|
| ● |
expectations related to the Company’s introduction of new Stock Keeping Unit (“SKUs”)
|
| ● |
anticipated cost savings from the reorganization of the Company's and the completion thereof upon the timelines disclosed herein.
|
| ● |
geographic diversification and brand recognition and the growth of the Company’s brands in the jurisdictions that the Company operates in or may expand to.
|
| ● |
expectations related to the Company’s ability to address the ongoing needs and preferences of medical cannabis patients.
|
| ● |
the Company’s retail presence, distribution capabilities and data-driven insights.
|
| ● |
the future impact of the Regulations Amendment regarding the transition reform from licenses to prescriptions for medical treatment of cannabis.
|
| ● |
the Company’s continued partnerships with third party suppliers and partners and the benefits thereof.
|
| ● |
the Company’s ability to achieve profitability in 2024.
|
| ● |
the number of patients in Israel licensed by the Israeli Ministry of Health (“MOH”) to consume medical cannabis.
|
| ● |
expectations relating to the number of patients paying out-of-pocket for medical cannabis products in Germany.
|
| ● |
the anticipated decriminalization or legalization of adult-use recreational cannabis in Israel and Germany.
|
| ● |
expectations related to the demand and the ability of the Company to source premium and ultra-premium cannabis products exclusively and competition in this product segment.
|
| ● |
the anticipated impact of inflation and liquidity on the Company’s performance.
|
| ● |
expectations with respect to the Company’s operating budget and the assumptions related thereto.
|
| ● |
expectations relating to the Company as a going concern and its ability to conduct business under the ordinary course of operations.
|
| ● |
expectations related to the collection the payment awarded in the Judgment and the chances of the claim advancing or the potential outcome of the Test Kits Appeal (as defined herein);
|
| ● |
the continued listing of the Company’s Common Shares in the capital of the Company (“Common Shares”) on the Nasdaq Stock Market (“Nasdaq”) and
Canadian Securities Exchange (“CSE”);
|
| ● |
cannabis licensing in the jurisdictions in which the Company operates.
|
| ● |
the renewal and/or extension of the Company’s licenses.
|
| ● |
the Company’s anticipated operating cash requirements and future financing needs.
|
| ● |
the Company’s expectations regarding its revenue, expenses, profit margins and operations.
|
| ● |
the anticipated Gross Margins, EBITDA and Adjusted EBITDA from the Company’s operations.
|
| ● |
the expected increase in revenue and margins in its Israeli medical cannabis market activities arising from its acquisitions.
|
| ● |
future opportunities for the Company in Israel, particularly in the retail and distribution segments of the cannabis market.
|
| ● |
future expansion and growth opportunities for the Company in Germany and Europe and the timing of such.
|
| ● |
contractual obligations and commitments; and
|
| ● |
the Company completing the Potential Transaction with Kadimastem (each as defined herein).
|
| ● |
the Company has the ability to achieve its business objectives and milestones under the stated timelines.
|
| ● |
the Company will succeed in carrying out its business, strategies and operations.
|
| ● |
the Company will realize upon its intentions to expand the business, operations and potential activities of the Company.
|
| ● |
the Company will expand its sales channels, distribution, delivery and storage capacity, and reach to medical cannabis patients.
|
| ● |
the competitive conditions of the cannabis industry and the growth of medical or adult-use recreational cannabis in the jurisdictions in which the Company operates.
|
| ● |
the competitive conditions of the industry will be favourable to the Company, and the Company has the ability to maintain or grow its market share and maintain its competitive advantages.
|
| ● |
the Company will commit to responsible growth and compliance with the strictest regulatory environments.
|
| ● |
the Company will remain focused on providing premium cannabis products to medical patients in the jurisdictions in which the Company conducts business and any other jurisdiction in which the Company may conduct business in the
future.
|
| ● |
the Company has the ability to amplify its commercial and brand power to become a global high-quality cannabis player.
|
| ● |
the Company will maintain its primary goal of sustainably increasing revenue in its core markets.
|
| ● |
the demand and momentum in the Company’s Israeli and Germany operations will be favourable to the Company.
|
| ● |
the Company will carry out its plans to position its brands as stated.
|
| ● |
the Company’s Company has the ability to realize upon the stated efficiencies and synergies the Company as a global organization with domestic expertise in Israel and Germany.
|
| ● |
providing a high-quality, reliable supply to the Company’s customers and patients will lead to recurring sales.
|
| ● |
the Company will introduce of new SKUs.
|
| ● |
the Company will realize the anticipated cost savings from the reorganization.
|
| ● |
the Company has the ability to achieve geographic diversification and brand recognition and the growth of the Company’s brands in the jurisdictions that the Company operates in or may expand to.
|
| ● |
the Company’s has the ability to address the ongoing needs and preferences of medical cannabis patients;
|
| ● |
the Company has the ability to realize upon its retail presence, distribution capabilities and data-driven insights.
|
| ● |
the future impact of the Regulations Amendment will be favourable to the Company.
|
| ● |
the Company will maintain its partnerships with third parties, suppliers and partners.
|
| ● |
the Company has the ability to achieve profitability in 2024;
|
| ● |
the accuracy of number of patients in Israel licensed by the MOH to consume medical cannabis.
|
| ● |
the accuracy of the number of patients paying out-of-pocket medical cannabis products in Germany.
|
| ● |
the anticipated decriminalization or legalization of adult-use recreational cannabis in Israel and Germany will occur.
|
| ● |
the Company has the ability to source premium and ultra-premium cannabis products exclusively and competition in this product segment.
|
| ● |
the anticipated impact of inflation and liquidity on the Company’s performance will be as forecasted.
|
| ● |
the accuracy with respect to the Company’s operating budget and the assumptions related thereto.
|
| ● |
the Company will remain as going concern.
|
| ● |
a favourable outcome with respect to the collection the payment awarded in the Judgment and the chances of the claim advancing or the potential outcome of the Test Kits Appeal.
|
| ● |
the Company’s Common Shares will remain listed on the Nasdaq and the CSE.
|
| ● |
the Company’s ability to maintain cannabis licensing in the jurisdictions in which the Company operates.
|
| ● |
the Company has the ability to obtain the renewal and/or extension of the Company’s licenses.
|
| ● |
the Company has the ability to meet operating cash requirements and future financing needs.
|
| ● |
the Company will meet or surpass its expectations regarding its revenue, expenses, profit margins and operations.
|
| ● |
the Company will meet or surpass its expectations regarding Gross Margins, EBITDA and Adjusted EBITDA from the Company’s operations.
|
| ● |
the Company will increase its revenue and margins in its Israeli medical cannabis market activities arising from its acquisitions.
|
| ● |
the Company has the ability to capitalize on future opportunities for the Company in Israel, particularly in the retail and distribution segments of the cannabis market.
|
| ● |
the Company will carry out its future expansion and growth opportunities for the Company in Germany and Europe and the timing of such.
|
| ● |
the Company will fulfill its contractual obligations and commitments; and
|
| ● |
the Company will complete the Proposed Transaction with Kadimastem.
|
| ● |
the Company’s inability to achieve its business objectives and milestones under the stated timelines.
|
| ● |
the Company inability to carry out its business, strategies and operations.
|
| ● |
the Company’s inability to realize upon its intentions to expand the business, operations and potential activities of the Company.
|
| ● |
the Company will not expand its sales channels, distribution, delivery and storage capacity, and reach to medical cannabis patients.
|
| ● |
the competitive conditions of the cannabis industry and the growth of medical or adult-use recreational cannabis markets will be unfavourable to the Company in the jurisdictions in which the Company operates.
|
| ● |
the competitive conditions of the industry will be unfavourable to the Company, and the Company’s inability to maintain or grow its market share and maintain its competitive advantages.
|
| ● |
the Company will not commit to responsible growth and compliance with the strictest regulatory environments.
|
| ● |
the Company’s inability to remain focused on providing premium cannabis products to medical patients in the jurisdictions in which the Company conducts business and any other jurisdiction in which the Company may conduct business
in the future.
|
| ● |
the Company inability to amplify its commercial and brand power to become a global high-quality cannabis player.
|
| ● |
the Company will not maintain its primary goal of sustainably increasing revenue in its core markets.
|
| ● |
the demand and momentum in the Company’s Israeli and Germany operations will be unfavourable to the Company.
|
| ● |
the Company will not carry out its plans to position its brands as stated.
|
| ● |
the Company’s inability to realize upon the stated efficiencies and synergies of the Company as a global organization with domestic expertise in Israel and Germany.
|
| ● |
providing a high-quality, reliable supply to the Company’s customers and patients will not lead to recurring sales.
|
| ● |
the Company will not introduce of new SKUs.
|
| ● |
the Company’s inability to realize upon the anticipated cost savings from the reorganization.
|
| ● |
the Company’s inability to achieve geographic diversification and brand recognition and the growth of the Company’s brands in the jurisdictions that the Company operates in or may expand to.
|
| ● |
the Company’s inability to address the ongoing needs and preferences of medical cannabis patients.
|
| ● |
the Company’s inability to realize upon its retail presence, distribution capabilities and data-driven insights.
|
| ● |
the future impact of the Regulations Amendment will be unfavourable to the Company.
|
| ● |
the Company will not maintain its partnerships with third party suppliers and partners.
|
| ● |
the inaccuracy of number of patients in Israel licensed by the MOH to consume medical cannabis.
|
| ● |
the inaccuracy of the number of patients paying out-of-pocket for medical cannabis products in Germany.
|
| ● |
the anticipated decriminalization or legalization of adult-use recreational cannabis in Israel and Germany will not occur.
|
| ● |
the Company’s ability to source premium and ultra-premium cannabis products exclusively and competition in this product segment.
|
| ● |
the anticipated impact of inflation and liquidity on the Company’s performance will not be as forecasted.
|
| ● |
the inaccuracy with respect to the Company’s operating budget and the assumptions related thereto.
|
| ● |
the Company will not remain as going concern.
|
| ● |
an unfavourable outcome of the negotiations or the Construction Proceedings.
|
| ● |
an unfavourable outcome with respect to the collection the payment awarded in the Judgment and the chances of the claim advancing or the potential outcome of the Appeal.
|
| ● |
the Company’s Common Shares will not remain listed on the Nasdaq and the CSE.
|
| ● |
the Company’s inability to maintain cannabis licensing in the jurisdictions in which the Company operates.
|
| ● |
the Company’s inability to obtain the renewal and/or extension of the Company’s licenses.
|
| ● |
the Company’s inability to meet operating cash requirements and future financing needs.
|
| ● |
the Company will not meet or surpass its expectations regarding its revenue, expenses, profit margins and operations.
|
| ● |
the Company will not meet or surpass its expectations regarding Gross Margins, EBITDA and Adjusted EBITDA from the Company’s operations.
|
| ● |
the Company will not increase its revenue and margins in its Israeli medical cannabis market activities arising from its acquisitions.
|
| ● |
the Company’s ability to capitalize on future opportunities for the Company in Israel, particularly in the retail and distribution segments of the cannabis market.
|
| ● |
the Company will not carry out its future expansion and growth opportunities for the Company in Germany and Europe and the timing of such; and
|
| ● |
the Company will not fulfill its contractual obligations and commitments; and
|
| ● |
the Company will not complete the Proposed Transaction with Kadimastem.
|
| 1. |
Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of IM Cannabis Corp. (the
“issuer”) for the interim period ended June 30, 2024.
|
| 2. |
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue
statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the
interim filings.
|
| 3. |
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other
financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim
filings.
|
| 4. |
Responsibility: The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal
control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
|
| 5. |
Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer and I have, as at the end of the period covered by the
interim filings:
|
| (a) |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
| (i) |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
| (ii) |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods
specified in securities legislation; and
|
| (b) |
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the
issuer’s GAAP.
|
| 5.1 |
Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Internal Control – Integrated Framework (COSO
Framework 2013) published by The Committee of Sponsoring Organization of the Treadway Commission (COSO).
|
| 5.2 |
N/A
|
| (a) |
he fact that the issuer’s other certifying officer(s) and I have limited the scope of our design of DC&P and ICFR to exclude controls, policies and procedures of
|
| (i) |
N/A
|
| (ii) |
N/A
|
| (iii) |
a business that the issuer acquired not more than 365 days before the last day of the period covered by the interim filings; and
|
| (b) |
summary financial information about the proportionately consolidated entity, special purpose entity or business that the issuer acquired that has been proportionately consolidated or consolidated in the issuer’s financial statements.
|
| 6. |
Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2024 and ended on June 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
|
”Uri Birenberg”
|
|
| Uri Birenberg |
|
| Chief Financial Officer |
|
| 1. |
Review: : I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of IM Cannabis Corp. (the
“issuer”) for the interim period ended June 30, 2024.
|
| 2. |
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to
state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
| 3. |
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other
financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim
filings.
|
| 4. |
Responsibility: The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal
control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
|
| 5. |
Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer and I have, as at the end of the period covered by the
interim filings
|
| (a) |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
| (i) |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
| (ii) |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods
specified in securities legislation; and
|
| (b) |
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the
issuer’s GAAPP.
|
| 5.1 |
Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Internal Control – Integrated Framework (COSO
Framework 2013) published by The Committee of Sponsoring Organization of the Treadway Commission (COSO).
|
| 5.2 |
N/A
|
| (a) |
the fact that the issuer’s other certifying officer(s) and I have limited the scope of our design of DC&P and ICFR to exclude controls, policies and procedures of
|
| (i) |
N/A
|
| (ii) |
N/A
|
| (b) |
summary financial information about the proportionately consolidated entity, special purpose entity or business that the issuer acquired that has been proportionately consolidated or consolidated in the issuer’s financial statements
|
| 7. |
Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2024 and ended on June 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
|
”Oren Shuster”
|
|
| Oren Shuster | |
| Chief Executive Officer |
Document and Entity Information |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Document Information [Line Items] | |
| Entity Registrant Name | IM Cannabis Corp. |
| Entity Central Index Key | 0001792030 |
| Document Type | 6-K |
| Amendment Flag | false |
| Document Period End Date | Jun. 30, 2024 |
| Current Fiscal Year End Date | --12-31 |
| Document Fiscal Year Focus | 2024 |
| Document Fiscal Period Focus | Q2 |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - CAD ($) $ in Thousands |
Share Capital and premium [Member] |
Reserve from share-based payment transactions [Member] |
Conversion option for convertible debt [Member] |
Translation reserve [Member] |
Accumulated deficit [Member] |
Equity attributable to owners of parent [Member] |
Non-controlling interests [Member] |
Total |
|---|---|---|---|---|---|---|---|---|
| Balance at Dec. 31, 2022 | $ 245,776 | $ 15,167 | $ 1,283 | $ (239,574) | $ 22,652 | $ 1,145 | $ 23,797 | |
| Net Loss | 0 | 0 | 0 | (4,059) | (4,059) | (513) | (4,572) | |
| Total other comprehensive loss | 0 | 0 | (186) | 36 | (150) | (9) | (159) | |
| Total comprehensive loss | 0 | 0 | (186) | (4,023) | (4,209) | (522) | (4,731) | |
| Issuance of common shares | 2,351 | 0 | 0 | 0 | 2,351 | 0 | 2,351 | |
| Share-based compensation | 0 | 121 | 0 | 0 | 121 | 0 | 121 | |
| Forfeited Options | 671 | (671) | 0 | 0 | 0 | 0 | 0 | |
| Balance at Jun. 30, 2023 | 248,798 | 14,617 | 1,097 | (243,597) | 20,915 | 623 | 21,538 | |
| Balance at Dec. 31, 2023 | 253,882 | 9,637 | $ 0 | 95 | (249,145) | 14,469 | 769 | 13,700 |
| Net Loss | 0 | 0 | 0 | 0 | (8,652) | (8,652) | (824) | (9,476) |
| Total other comprehensive loss | 0 | 0 | 0 | 1,484 | 67 | 1,551 | 7 | 1,558 |
| Total comprehensive loss | 0 | 0 | 0 | 1,484 | (8,585) | (7,101) | (817) | (7,918) |
| Net proceeds of convertible debt allocated to conversion option | 0 | 0 | 327 | 0 | 0 | 327 | 0 | 327 |
| Other comprehensive income Classification | 0 | 0 | 0 | 0 | (748) | (748) | 0 | (748) |
| Share-based compensation | 0 | 120 | 0 | 0 | 0 | 120 | 0 | 120 |
| Forfeited Options | 84 | (84) | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance at Jun. 30, 2024 | $ 253,966 | $ 9,673 | $ 327 | $ 1,579 | $ (258,478) | $ 7,067 | $ (1,586) | $ 5,481 |
GENERAL |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||
| Disclosure Of General Information About Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
| GENERAL [Text Block] |
IM Cannabis Corp. (the "Company" or "IMCC") is listed for trading on the Canadian Securities Exchange (“CSE”) and, commencing from March 1, 2021, on NASDAQ under the ticker symbol “IMCC”. IMCC’s main office is located in Kibbutz Glil-Yam, Israel.
The Company and its subsidiaries (collectively: the "Group"), operate in geographical reporting segments (Note 8). Most of the Group’s revenues are generated from sales of medical cannabis products to customers in Israel. The remaining revenues are generated from sales of medical cannabis, as well as other products, to customers in Germany.
In Israel, IMCC operates in the field of medical cannabis, through Focus Medical Herbs Ltd. ("Focus"), which held a cultivation license to breed, grow and supply medical cannabis products in Israel under the regulations of medical cannabis by the Israeli Ministry of Health through its Israel Medical Cannabis Agency ("IMCA") until July 2022. In July 2022 Focus closed its cultivation facility and received an IMCA license which allows it to import cannabis products and proceed with its supply activity. All of its operations are performed pursuant to the Israeli Dangerous Drugs Ordinance (New Version), 1973 (the "Dangerous Drugs Ordinance"), and the related regulations issued by IMCA.
During 2021, IMCC also entered into the field of retail medical cannabis and other pharma products in Israel through the acquisition of several pharmacies and trade houses specializes in medical cannabis, including the pharmacies of Revoly Trading and Marketing Ltd. ("Vironna"), R.A. Yarok Pharm Ltd. and Oranim Plus Pharm Ltd. ("Oranim"), and the trade houses of Panaxia and Rosen High Way Ltd.
In Europe, IMCC operates through Adjupharm GmbH ("Adjupharm"), a German-based subsidiary acquired by IMC Holdings Ltd. ("IMC Holdings") on March 15, 2019. Adjupharm is an EU-GMP certified medical cannabis producer and distributor with wholesale, narcotics handling, manufacturing, procurement, storage and distribution licenses granted by German regulatory authorities that allow for import/export capability with requisite permits.
In Canada, IMCC actively operated until recently through Trichome Financial Corp. and its wholly-owned subsidiaries Trichome JWC Acquisition Corp. (“TJAC”) and MYM Nutraceuticals Inc. (“MYM“) (collectively: "Trichome" or the "Canadian entities"). The Canadian entities are federally licensed producers of cannabis products in the adult-use recreational cannabis market in Canada. IMCC has exited its operations in Canada, and deconsolidated Trichome on November 7, 2022, pursuant to IFRS.
The Company and its subsidiaries do not engage in any U.S. cannabis-related activities as defined in Canadian Securities Administrators Staff Notice 51-352.
Panaxia Transaction Update:
On February 13, 2023, the Company announced that it reached an agreement, together with Panaxia, to terminate the option that the Company had, under the Panaxia Transaction, to acquire a pharmacy licensed to dispense and sell medical cannabis to patients, for no additional consideration. Under the agreement, the Company will not be required to make the fifth installment of approximately $262 of Common Shares owed by the Company to Panaxia under the Panaxia Transaction and will receive an agreed compensation amount of approximately $95 from Panaxia to be paid by Panaxia in services and cannabis inflorescence in accordance with the terms as agreed by the parties.
As of June 30, 2024, the amount was not received and accrued for bad debt. Liquidity and capital resources - going concern:
As of June 30, 2024, the Group's cash and cash equivalents totaled $700, the Group's working capital (current assets less current liabilities) amounted to $(10,461) and the Group’s accumulated loss deficit amounted to $258,478. In the six months ended June 30, 2024, the Group had an operating loss of ($8,499) and cash flows from operating activities of $368.
The Group’s current operating budget includes various assumptions concerning the level and timing of cash receipts from sales and cash outlays for operating expenses and capital expenditures, including cost saving plans. In 2023 The Company’s board of directors approved a cost saving plan, to allow the Company to continue its operations and meet its cash obligations. The cost saving plan consisted cost reduction due to efficiencies and synergies, included mainly the following steps: discontinued operations of loss-making activities, reduction in payroll and headcount, reduction in compensation paid to key management personnel (including layoffs of key executives), operational efficiencies and reduced capital expenditures. Those actions saves costs in 2024 and the company will continue its efforts for efficiency operations.
Despite the cost savings plan and restructuring as described above, the projected cash flows for 2024 indicate that it is uncertain that the Group will generate sufficient funds to continue its operations and meet its obligations as they become due. The Group continues to evaluate additional sources of capital and financing. However, there is no assurance that additional capital and or financing will be available to the Group, and even if available, whether it will be on terms acceptable to the Group or in amounts required.
These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets or liabilities that might be necessary should the Company be unable to continue as a going concern.
Financial Statement Condensed format and Figure disclosure
These financial statements have been prepared in a condensed format as of June 30, 2024, and for the six months then ended (the "interim condensed consolidated financial statements"). These financial statements should be read in conjunction with the Company's annual financial statements as of December 31, 2023, and for the year then ended and accompanying notes (the "annual consolidated financial statements").
The figures disclosed here for the three months ended June 30, 2023, encompass updates and adjustments made during Q2 2023 to the Company’s previously filed unaudited interim financial statements. The adjustments and updates were immaterial.
Debt Settlement with L5 Capital
On May 8th, 2023, the Company announced that on May 5th, 2023, it has closed the securities for debt settlement transaction with L5 Capital (the “Debt Settlement”). Pursuant to the Debt Settlement, the Company settled outstanding indebtedness of $838,776 (approximately US$615,615) through issuing 492,492 Units at a price of US$1.25 per Unit. Each Unit consists of one Common Share of the Company and one Common Share purchase Warrant. Each Warrant entitles L5 Capital to purchase one additional Common Share at an exercise price of US$1.50 per Common Share for a period of 36 months from the date of issuance. All securities issued are subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable Canadian securities legislation.
Discontinue operations and Canadian entities CCAA:
On November 7, 2022, in connection with the Company’s efforts to achieve operational efficiencies, the Company announced that it is pivoting its focus and resources on growth in its highest value markets in Israel and Germany while also commencing its exit from the Canadian cannabis market as part of the Canadian Restructuring.
The Canadian operations are held through the Canadian entities and being orderly wound-down under CCAA pursuant to an initial order of the Court issued on November 7, 2022 (as amended and restated by an order made by the Court on November 17, 2022, the “Initial Order”). The Initial Order includes a broad stay (as extended from time to time, the “Stay”) of all proceedings against the Canadian entities and its assets. Pursuant to the Initial Order, KSV Restructuring Inc. was appointed as monitor (the “Monitor”) in the CCAA Proceedings.
On January 9, 2023, the Court issued an order in the CCAA Proceedings in respect of a motion brought by the Canadian entities to approve, among other things: a sale and investment solicitation process (the “SISP”) in respect of the business and assets of the Canadian entities; and a stalking horse share purchase agreement (the “Stalking Horse Purchase Agreement”) between the Canadian entities and L5 Capital Inc. (“L5”), a company wholly-owned and controlled by the executive chairman and a director of the Company, dated December 12, 2022. The SISP established a process to solicit interest for investments in, or the sale of any or all of the Canadian entities' business and assets.
On February 22, 2023, the Monitor issued a report (the “Monitor’s Third Report”) in the CCAA Proceedings advising, among other things, that (i) no qualified bids were received pursuant to the SISP, (ii) L5 informed the Canadian entities that it would not be completing the transaction contemplated by the Stalking Horse Purchase Agreement and, as a result, the Canadian entities terminated the Stalking Horse Purchase Agreement, and (iii) the Monitor continues to market for sale the Canadian entities’ business and assets, including the brands and other intellectual property owned by the Canadian entities.
Pursuant to an order of the Court made on April 6 ,2023 in the CCAA Proceedings (the “Reverse Vesting Order”), the Court approved a share purchase agreement (the “Share Purchase Agreement”) dated March 28, 2023 among Trichome Financial Corp. (“Trichome” or the “Vendor”), 1000370759 Ontario Inc. (the “Purchaser”), Trichome JWC Acquisition Corp. (“TJAC”), Trichome Retail Corp. (“TRC”), MYM Nutraceuticals Inc. (“MYM”), MYM International Brands Inc. (“MYMB”) and Highland Grow Inc. (“Highland”, and collectively with TJAC, TRC, MYM and MYMB, the “Purchased Entities”). The Purchased Entities and its business and operations were sold to a party that is not related to the Company, for a purchase price of $3,375 along with certain deferred consideration. Thus, the Company has exited operations in Canada. The Company has neither received nor is entitled to any portion of the proceeds from the Share Purchase Agreement.
On September 14, 2023, a CCAA Termination Order was granted by the Honorable Justice Osborne (upon service on the Service List of an executed certificate and the above CCAA Proceedings under the Companies Creditors’ Arrangement Act and the Stay Period were terminated without any further act or formality. On September 29th, 2023, Trichome Financial Corp. filed (or was deemed to have filed) an assignment (or a bankruptcy order was made against Trichome Financial Corp.), and Goldhar & Associates Ltd., was appointed as trustee of the estate of the bankrupt by the official receiver (or the Court). The first meeting of creditors of the bankrupt was held on October 17th, 2023.
As a direct or indirect shareholder of the entities that make up the Trichome Group, the Company is subject to the priorities of other stakeholders in the CCAA proceedings and will likely realize no return in the restructure of the Trichome Group business.
Telekana Agreement
On November 29, 2022, IMC signed on a convertible loan agreement with Telekana Ltd. (“Telekana”), a Pharmacy for sell of medical Cannabis accordingly IMC will loan a total of $611. The loan will be converted to 1,040 shares representing 51% of the total common share of Telekana, at the earlier of the following events; (i) Telekana will receive the permit for sell of medical Cannabis from the Israeli Ministry of Health, (ii) IMC sole decision to convert. The permit was received on November 13, 2023.
For the years ended December 31, 2023, 2022, IMC recognized a revaluation gain (loss) from remeasurement of the loan.
As of June 30, 2024, IMC did not receive the Israeli Ministry of Health approval for the conversion yet.
Restructuring:
On April 6, 2022, Focus closed the "Sde Avraham", cultivation facility in Israel, resulting restructuring expenses related to impairment of property, plant and equipment, biological assets and right of use asset and liabilities, in the total amount of $4,383.
On March 8, 2023, the Company announced its strategy plan in Israel in order to strengthen its focus on core activities and drive efficiencies to realize sustainable profitability. The Company reduced its workforce in Israel across all functions (including executives). All actions associated with the workforce reduction were completed by mid-2023, subject to applicable Israeli law. Therefore, the Company recorded restructuring expenses for the twelve months ended December 31, 2023 related mainly to salaries to employees in the amount of $617
On June 30, 2023, the entity responsible for operating the Israeli medical cannabis distribution licensed center that was acquired within the Panaxia Transaction, ceased its operations at the licensed trading house located in Lod, Israel. Consequently, the Company transitioned the operation that was conducted through IMC Pharma to third-party entities and to its own trading house currently being operated by Rosen High Way.
Kadimastem Ltd. Preliminary Term Sheet Termination:
On February 13, 2024 the Company entered into a non-binding term sheet and a Loan Agreement, with Israel-based Kadimastem Ltd, a clinical cell therapy public company traded on the Tel Aviv Stock Exchange under the symbol (TASE:KDST) (“Kadimastem”), whereby the parties will work to complete a business combination that will constitute a reverse merger into the Company by Kadimastem.
The resulting issuer that will exist upon completion of the Proposed Transaction will change its business from medical cannabis to biotechnology and, at the closing of the Proposed Transactions (the "Closing").
Kadimastem shareholders will hold 88% of the common shares of the Company (the “Resulting Issuer Shares”) and the shareholders of the Company will hold 12% of the Resulting Issuer Share. Parties may agree, in the Definitive Agreement, on a different structure of equity in lieu of the warrants with a similar result. The Proposed Transaction is an arm’s length transaction Prior to Closing, IMC's existing medical cannabis operation and other current activities in Israel and Germany (the "Legacy Business") will be restructured (the “Spin-Out”) as a contingent value right (the "CVR"). The CVR will entitle the holders thereof to receive net cash, equity, or other net value upon the sale of the Legacy Business.
The Legacy Business will be made available for potential sale to a third party for a period of up to 12 months from Closing (the "Record Date"). After the Record Date, any remaining Legacy Business in the CVR will be offered for sale through a tender process, subject to the terms of the best offer. The proceeds from the sale of the Legacy Business will be utilized to settle debts and distribute the remaining balance, if any, to CVR holders.
On February 28, 2024, Pursuant to the terms of the Term Sheet, a loan agreement was signed between IMC, a wholly owned subsidiary of the Company and Kadimastem. Accordingly, Kadimastem will provide a loan of up to US$650,000 to IMC, funded in two installments: US$300,000 upon signing the Loan Agreement and US$350,000 upon the execution of the definitive agreement regarding the Proposed Transaction (the "Loan").
The Loan accrues 9.00% interest per annum, for 12 months and is secured by the following collaterals and guarantees: (a) 10% of the proceeds derived from any operation sale under the CVR (“Charged Rights”), limited to the outstanding Loan Amount and expenses according to the Loan Agreement, accordingly IMC may, at its sole discretion, to record a second-ranked fixed charge over the Charged Rights or, alternatively, in case the existing pledges over the Charged Rights at the date of signing this Loan Agreement are subsequently discharged or removed, then the Borrower shall promptly record a first-ranking fixed charge over the Charged Assets with all applicable public records; provided that IMC shall not impose any new lien, mortgage, charge or pledge over the Charged Rights that did not exist on the date hereof, or any other liens, subject to customary exclusions; (b) IMC shall use its best efforts to record a first-ranking fixed charge over the assets of its subsidiary, R.A Yarok Pharm Ltd, in due course when applicable and as deemed appropriate; and (c) a personal guarantee by Mr. Oren Shuster, IMC’s CEO.
On May 28, 2024, the Company announced the termination of the preliminary term sheet signed on February 13, 2024 with Kadimastem Ltd. According to the separation agreement signed with Kadimastem, as a result of this termination, the loan provided to IMC by Kadimastem in a total amount of US$300,000 will be repaid together with 9% annual interest accrued thereon, in three installments by July 31st, 2024.
NASDAQ Compliance Notice
On August 1, 2023, the Company received written notification from Nasdaq (the “Notification Letter”) provided that the closing bid price of the Common Shares had fallen below US$1.00 per share over a period of 30 consecutive business days, with the result that the Company was not in compliance with the Minimum Share Price Listing Requirement. The Notification Letter provided that the Company has until January 16, 2024, being 180 calendar days following receipt of such notice to regain compliance with the Minimum Share Price Listing Requirement for a minimum of 10 consecutive business days.
On January 31, 2024, the Company announced that it has received a 180-calendar day extension, until July 29, 2024, from the Nasdaq Stock Market ("Nasdaq"), to regain compliance with Nasdaq Marketplace Rule 5550(a)(2) (the "Bid Price Rule").
Tax on Premiums in Respect of Insurance Effected Outside Canada
By Notice of Assessment for Excise Tax dated October 23, 2023 and covering the period January 1, 2020 to December 31, 2020, IM Cannabis Corp. was assessed tax on insurance of $199, arrears interest of $36 and a failure to file penalty of $8 (collectively, the “2020 Assessment”).
By Notice of Assessment for Excise Tax dated October 23, 2023 and covering the period January 1, 2021 to December 31, 2021, IM Cannabis Corp. was assessed excise tax on insurance of $73, arrears interest of $2 and a failure to file penalty of $0.5 (collectively, the “2021 Assessment”).
On November 29, 2023, the Company filed Notices of Objection (Excise Tax Act) to the 2020 Assessment and the 2021 Assessment. The Company assess the filed Notices of Objection (Excise Tax Act) to be low to medium complexity.
On April 26, 2024, the Company received a letter from the CRA that the Notice of Assessment for Excise Tax that the Company objected to will be voided and no outstanding balance will be owed with respect to such assessments. Based on the forgoing, this matter has been resolved to the Company's satisfaction and the objections were finalized.
35 Oak Holdings Ltd – Statement of Complaint
On November 17, 2023, the Company received a copy of a Statement of Claim that was filed in the Ontario Superior Court of Justice in Canada by 35 Oak Holdings Ltd., MW Investments Ltd., 35 Oak Street Developments Ltd., Michael Wiener, Kevin Weiner, William Weiner, Lily Ann Goldstein-Weiner, in their capacity as trustees of the Weiner Family Foundation against the Company and its board of directors, Board and officers.
MYM Shareholder Plaintiffs claims that the MYM Defendants made misrepresentations in its disclosures prior to the Company's transaction with MYM in 2021. The MYM Shareholder Plaintiffs are claiming damages that amount to approximately $15,000 and aggravated, exemplary and punitive damages in the amount of $1,000.
The Company, together with some of the Defendants brought, on February 22, 2024, a preliminary motion to strike out several significant parts of the claim (the "Motion"). The Motion has not been scheduled by the court.
At this time, the Company's management is of the view that the Motion has merit and is likely to succeed in at least narrowing the scope of the claim against the Company, and that it may also result in certain of the claims against individuals being dismissed altogether, and if not dismissed narrowed in scope and complexity.
On June 17, 2024, an Amended Statement of Claim was filed in the Ontario Superior Court of Justice in Canada by the MYM Shareholder Plaintiffs.
The Company plans to vigorously defend itself against the allegations. At this stage, the Company management cannot assess the chances of the claim advancing or the potential outcome of these proceedings.
Oranim pharmacy
On December 1, 2021, IMC Holdings signed a definitive agreement to acquire 51% of the rights in Oranim for an aggregate consideration of approximately NIS 11,900 thousand (approximately $4,900), comprised of NIS 5,200 thousand (approximately $2,100) paid in cash upon signing, NIS 5,200 thousand (approximately $2,100) which agreed to be paid in cash on the first quarter of 2023 and NIS 1,500 thousand (approximately $700) in Common Shares.
As of April 2023, amendment was signed accordingly the remaining amount will be paid in six equal installments until February 2024.
As of December 31, 2023, the agreed amount to be paid was not exercised.
Through a new amendment signed January 10, 2024, all remaining unpaid installments has been postponed to April 15, 2024. All six installments (that remain unpaid) will incur a 15% interest charge. Failure to meet the remaining payments will result in the transfer of IMC Holdings Ltd. shares (51%) back to the seller, along with the revocation of the transaction.
On April 16, 2024, the Company announced that following a reconciliation between the parties regarding all remaining unpaid installments ($1,930) by the company, relating to the Oranim Pharmacy Acquisition completed on March 28, 2022, the parties have mutually agreed to deconsolidate the transaction. As a result, the Company shares (51%) were transferred back to the seller (see also note 9).
Exercise of Focus Option
On November 30, 2023, IMC Holdings acted to exercise its option to purchase the 74% interest in Focus held by Oren Shuster and Rafael Gabay by submitting a request to the IMCA which approved the transaction on February 25, 2024.
As of June 30, 2024, IMC Holdings holds 74% of Focus shares.
Legalization of Cannabis in Germany
Germany legalized cannabis on April 1, 2024, facilitating the access to medical cannabis prescriptions for patients and legalizing non-profit social clubs starting July 1, 2024
Credit facilities
Convertible Debenture Offering
In May 26, 2024, the Company has closed a non-brokered private placement of secured convertible debentures ("Debentures") of the Company for aggregate proceeds of $2,092. The Debentures were issued to holders of short-term loans and obligations owed by the Company or its wholly owned subsidiaries and were inclusive of a 10% extension fee in full settlement of such debt to the holders. The Debentures may be converted into common shares in the Company at a conversion price of $0.85 per Share. The Debentures will mature on May 26, 2025, and will not incur interest except in the event of default.
Israel Hamas war
On October 7, 2023, a war between the terror organization Hamas and Israel began. This war has an impact on the company's business operations. The company has suffered a negative impact since and there will be a potential positive effect in the medium to long term.
Change to Board of Directors
On June 5, 2024, Mr. Marc Lustig, a director of the Company and a Chairman of the Board of Directors, stepped down from his positions. The Board of Directors has appointed Oren Shuster, currently a director and CEO of IMC, as the new Chairman of the Board of Directors of IMC.
These consolidated financial statements of the Company were authorized for issue by the board of directors on August 13, 2024.
In these financial statements:
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| SIGNIFICANT ACCOUNTING POLICIES [Text Block] |
The interim condensed consolidated financial statements of the Company have been prepared in accordance with International Accounting Standards 34, "Interim Financial Reporting" ("IAS 34").
The interim condensed consolidated financial statements are presented in Canadian dollars and are prepared in accordance with the same accounting policies, described in the Company's annual consolidated financial statements. The following new accounting standards applied or adopted during the six months ended June 30, 2024, and had no impact on the Interim Financial Statements:
In January 2020, the IASB issued amendments to IAS 1, regarding the criteria for classifying liabilities with covenants as current or non-current.
In October 2022 the IASB issued an additional amendment accordingly a Company has to disclose of the book value of the liability and information on the financial benchmarks as well as facts and circumstances at the end of the reporting period that may lead to the conclusion that the entity will have difficulty in complying with the financial covenants. The Amendment is applicable for annual periods beginning on or after January 1, 2024.
The Company has a loan that is presently convertible into Ordinary shares of the Company. The conversion component is classified in the financial statements as a financial liability.
In September 2022, the IASB issued an amendment to IFRS 16, " Lease Liability in a Sale and Leaseback" ("IFRS 16"), which provides accounting treatment in the financial statements of the seller-lessee in sale and leaseback transactions when the lease payments are variable lease payments that do not depend on the index or the exchange rate. As part of the amendment, the seller-lessee is required to adopt one of two approaches to measuring the liability for the lease at the time of first recognition of such transactions. The chosen approach constitutes an accounting policy that must be applied consistently.
The Amendment is applicable for annual periods beginning on or after January 1, 2024.
The Amendment did not have a material impact on the Company interim consolidated financial statements.
In May 2023, the IASB published amendments to International Accounting Standard 7, Statement of Cash Flows, and IFRS 7, Financial Instruments: Disclosures (hereinafter: "the amendments"), to clarify the characteristics of to address the presentation of liabilities and the associated cash flows arising out of supplier finance arrangements, as well as disclosures required for such arrangements.
The disclosure requirements in the amendments are intended to assist and enable users of the financial statements to assess the effects of supplier financing arrangements on the entity's obligations as well as on the entity's cash flows and exposure to liquidity risk. The Amendment is applicable for annual periods beginning on or after January 1, 2024.
According to the transition provisions of the Amendments, the Company is not required to provide disclosures in interim periods during the first year of adoption, and therefore the above Amendments did not have a material impact on the Company's condensed interim consolidated financial statements. However, the Amendments are expected to affect the disclosures of supplier finance arrangements in the Company's annual consolidated financial statements.
In April 2024, the International Accounting Standards Board ("the IASB") issued IFRS 18, "Presentation and Disclosure in Financial Statements" ("IFRS 18") which replaces IAS 1, "Presentation of Financial Statements".
IFRS 18 is aimed at improving comparability and transparency of communication in financial statements.
IFRS 18 retains certain existing requirements of IAS 1 and introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information.
IFRS 18 does not modify the recognition and measurement provisions of items in the financial statements. However, since items within the statement of profit or loss must be classified into one of five categories (operating, investing, financing, taxes on income and discontinued operations), it may change the entity's operating profit. Moreover, the publication of IFRS 18 resulted in consequential narrow scope amendments to other accounting standards, including IAS 7, "Statement of Cash Flows", and IAS 34, "Interim Financial Reporting".
IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and is to be applied retrospectively. Early adoption is permitted but will need to be disclosed.
The Company is evaluating the effects of IFRS 18, including the effects of the consequential amendments to other accounting standards, on its consolidated financial statements.
The preparation of the Company's interim condensed consolidated financial statements under IFRS requires management to make judgements, estimates, and assumptions about the carrying amounts of certain assets and liabilities. Estimates and related assumptions are based on historical experience and other relevant factors. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis for reasonableness and relevancy. Where revisions are required, they are recognized in the period in which the estimate is revised as well as future periods that are affected.
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The following is a breakdown of inventory as of June 30, 2024:
The following is a breakdown of inventory as of December 31, 2023:
During the six months ended June 30, 2024, and 2023, inventory expensed to cost of goods sold of cannabis products was $22,586 and $17,716, respectively, which included $25 and $617 of non-cash expense, respectively, related to the changes in fair value of inventory sold.
Cost of revenues in six months period ended June 30, 2024 and 2023, also include production overhead not allocated to costs of inventories produced and recognized as an expense as incurred.
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| FINANCIAL INSTRUMENTS [Text Block] |
Management believes that the carrying amount of cash and cash equivalents, trade receivables, other accounts receivable, trade payables, bank loans and credit facility, other account payables and accrued expenses and accrued purchase consideration payable, approximate their fair value due to the short-term maturities of these instruments.
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EQUITY |
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Common Shares confer upon their holders the right to participate in the general meeting where each Common Share has one voting right in all matters, receive dividends if declared and to participate in the distribution of surplus assets in case of liquidation of the Company.
On November 14, 2022, the Company’s shareholders general meeting resolved to consolidate all its issued and outstanding Ordinary shares on a ten (10) to one (1) basis (the “Share Consolidation”). All share and per share amounts in these consolidated financial statements, give effect to the Share Consolidation for all periods presented (see also note 10).
LIFE Offering
In January and February of 2023, the Company issued an aggregate of 2,828,248 units of the Company (each a “Unit”) at a price of US$1.25 ($1.66) per Unit for aggregate gross proceeds of US$3,535 ($4,702) thousand in a series of closings pursuant to a non-brokered private placement offering to purchasers resident in Canada (except the Province of Quebec) and/or other qualifying jurisdictions relying on the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions (the “LIFE Offering”). Each Unit consisted of one Common Share and one Common Share purchase warrant (each, a “Warrant”), with each Warrant entitling the holder thereof to purchase one additional Common Share at an exercise price of US$1.50 ($1.99) for a period of 36 months from the date of issue.
In addition, a non-independent director of the Company subscribed for an aggregate of 131,700 Units under the LIFE Offering at an aggregate subscription price of US$165 ($219). The director's subscription price was satisfied by the settlement of US$165 in debt owed by the Company to the director for certain consulting services previously rendered by the director to the Company.
Concurrent Offering
Concurrent with the LIFE Offering, the Company issued an aggregate of 2,317,171 Units on a non-brokered private placement basis at a price of US$1.25 ($1.66) per Unit for aggregate gross proceeds of US$2,896 ($3,852) (the “Concurrent Offering”). The Concurrent Offering was led and participated by insiders of the Company of 1,159,999 Units out of the total Concurrent offering Units. The Units offered under the Concurrent Offering were offered for sale to purchasers in all provinces and territories of Canada and jurisdictions outside Canada.
Pursuant to available prospectus exemptions other than for the LIFE Offering exemption.
All Units issued under the Concurrent Offering were subject to a statutory hold period of four months and one day in accordance with applicable Canadian securities laws.
The following table lists the movement in the number of share options and the weighted average exercise prices of share options in the 2018 Plan:
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SELECTED STATEMENTS OF PROFIT OR LOSS DATA |
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NET EARNINGS (LOSS) PER SHARE |
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| Earnings per share [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET EARNINGS (LOSS) PER SHARE [Text Block] |
Details of the number of shares and income (loss) used in the computation of earnings per share:
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OPERATING SEGMENTS |
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of operating segments [abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPERATING SEGMENTS [Text Block] |
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker ("CODM"), who is responsible for allocating resources and assessing performance of the operating segments. The Company's Chief Executive Officer is the CODM. The Company has determined that it operates in two operating segments (after the reclassification of the operating activities of the Trichome Group in Canada as discontinued operations).
Six months ended June 30, 2024:
Six months ended June 30, 2023:
Three months ended June 30, 2024:
Three months ended June 30, 2023:
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DECONSOLIDATION OF ORANIM PHARMACY |
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| Discontinued Operations And Deconsolidation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DISCONTINUED OPERATIONS AND DECONSOLIDATION OF TRICHOME [Text Block] |
On April 16, 2024, the Company announced that following a reconciliation between the parties regarding all remaining unpaid installments ($1,930) by the company, relating to the Oranim Pharmacy Acquisition completed on March 28, 2022, the parties have mutually agreed to deconsolidate the transaction. As a result, the Company shares (51%) were transferred back to the seller.
The assets and liabilities of Oranim included in the consolidated statement of financial position as of December 31, 2023, and immediately prior to the deconsolidation on April 15, 2024, are as follows:
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SUBSEQUENT EVENTS |
6 Months Ended | |||||||||||
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Jun. 30, 2024 | ||||||||||||
| Disclosure of non-adjusting events after reporting period [abstract] | ||||||||||||
| SUBSEQUENT EVENTS [Text Block] |
On July 1st, 2024, IMC Holdings entered into a short-term loan agreement with a non-financial institute in the amount of $1,113. Such loan bear interest at an annual rate of 12% and mature 62 days from the date of signing the loan agreement.
On July 12, 2024, the Company consolidated its issued and outstanding common shares based on one post-consolidated Common Share for every six pre-consolidated Common Shares.
Post Consolidation, total Common Shares were reduced from 13,394,136 to 2,232,357 Common Shares.
On July 26, 2024, the Company received a formal notice from The Nasdaq Stock Market, LLC ("Nasdaq") stating that the Company has regained compliance with the minimum bid price requirement set forth in Rule 5550(a)(2) of the Nasdaq Listing.
The Company is now in compliance with all applicable listing standards and will continue to be listed and traded on the NASDAQ Stock Market.
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SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Jun. 30, 2024 | ||||||||||||||||
| Disclosure For Significant Accounting Policies [Abstract] | ||||||||||||||||
| Basis of presentation and measurement [Policy Text Block] |
The interim condensed consolidated financial statements of the Company have been prepared in accordance with International Accounting Standards 34, "Interim Financial Reporting" ("IAS 34").
The interim condensed consolidated financial statements are presented in Canadian dollars and are prepared in accordance with the same accounting policies, described in the Company's annual consolidated financial statements. The following new accounting standards applied or adopted during the six months ended June 30, 2024, and had no impact on the Interim Financial Statements:
In January 2020, the IASB issued amendments to IAS 1, regarding the criteria for classifying liabilities with covenants as current or non-current.
In October 2022 the IASB issued an additional amendment accordingly a Company has to disclose of the book value of the liability and information on the financial benchmarks as well as facts and circumstances at the end of the reporting period that may lead to the conclusion that the entity will have difficulty in complying with the financial covenants. The Amendment is applicable for annual periods beginning on or after January 1, 2024.
The Company has a loan that is presently convertible into Ordinary shares of the Company. The conversion component is classified in the financial statements as a financial liability.
In September 2022, the IASB issued an amendment to IFRS 16, " Lease Liability in a Sale and Leaseback" ("IFRS 16"), which provides accounting treatment in the financial statements of the seller-lessee in sale and leaseback transactions when the lease payments are variable lease payments that do not depend on the index or the exchange rate. As part of the amendment, the seller-lessee is required to adopt one of two approaches to measuring the liability for the lease at the time of first recognition of such transactions. The chosen approach constitutes an accounting policy that must be applied consistently.
The Amendment is applicable for annual periods beginning on or after January 1, 2024.
The Amendment did not have a material impact on the Company interim consolidated financial statements.
In May 2023, the IASB published amendments to International Accounting Standard 7, Statement of Cash Flows, and IFRS 7, Financial Instruments: Disclosures (hereinafter: "the amendments"), to clarify the characteristics of to address the presentation of liabilities and the associated cash flows arising out of supplier finance arrangements, as well as disclosures required for such arrangements.
The disclosure requirements in the amendments are intended to assist and enable users of the financial statements to assess the effects of supplier financing arrangements on the entity's obligations as well as on the entity's cash flows and exposure to liquidity risk. The Amendment is applicable for annual periods beginning on or after January 1, 2024.
According to the transition provisions of the Amendments, the Company is not required to provide disclosures in interim periods during the first year of adoption, and therefore the above Amendments did not have a material impact on the Company's condensed interim consolidated financial statements. However, the Amendments are expected to affect the disclosures of supplier finance arrangements in the Company's annual consolidated financial statements.
In April 2024, the International Accounting Standards Board ("the IASB") issued IFRS 18, "Presentation and Disclosure in Financial Statements" ("IFRS 18") which replaces IAS 1, "Presentation of Financial Statements".
IFRS 18 is aimed at improving comparability and transparency of communication in financial statements.
IFRS 18 retains certain existing requirements of IAS 1 and introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information.
IFRS 18 does not modify the recognition and measurement provisions of items in the financial statements. However, since items within the statement of profit or loss must be classified into one of five categories (operating, investing, financing, taxes on income and discontinued operations), it may change the entity's operating profit. Moreover, the publication of IFRS 18 resulted in consequential narrow scope amendments to other accounting standards, including IAS 7, "Statement of Cash Flows", and IAS 34, "Interim Financial Reporting".
IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and is to be applied retrospectively. Early adoption is permitted but will need to be disclosed.
The Company is evaluating the effects of IFRS 18, including the effects of the consequential amendments to other accounting standards, on its consolidated financial statements.
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| Significant accounting judgements and estimates [Policy Text Block] |
The preparation of the Company's interim condensed consolidated financial statements under IFRS requires management to make judgements, estimates, and assumptions about the carrying amounts of certain assets and liabilities. Estimates and related assumptions are based on historical experience and other relevant factors. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis for reasonableness and relevancy. Where revisions are required, they are recognized in the period in which the estimate is revised as well as future periods that are affected.
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INVENTORIES (Tables) |
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| Classes of current inventories [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of detailed information about inventories [Table Text Block] |
The following is a breakdown of inventory as of December 31, 2023:
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FINANCIAL INSTRUMENTS (Tables) |
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| Disclosure of detailed information about financial instruments [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of information about key assumptions to measure fair value of warrants [Table Text Block] |
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EQUITY (Tables) |
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| Disclosure of classes of share capital [abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of composition of share capital [Table Text Block] |
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| Disclosure of changes in issued and outstanding share capital [Table Text Block] |
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| Disclosure of detailed information about options, valuation assumptions [Table Text Block] |
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SELECTED STATEMENTS OF PROFIT OR LOSS DATA (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of operating segments [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of statement of profit and loss [Table Text Block] |
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NET EARNINGS (LOSS) PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per share [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of earnings per share [Table Text Block] |
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OPERATING SEGMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of operating segments [abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of operating segments [Table Text Block] |
Six months ended June 30, 2024:
Six months ended June 30, 2023:
Three months ended June 30, 2024:
Three months ended June 30, 2023:
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DECONSOLIDATION OF ORANIM PHARMACY (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations And Deconsolidation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of consolidated statement of financial position of discontinued operations [Table Text Block] |
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GENERAL (Narrative) (Details) $ / shares in Units, $ / shares in Units, ₪ in Thousands, $ in Thousands |
1 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 13, 2024 |
May 08, 2023
CAD ($)
|
May 08, 2023
USD ($)
$ / shares
shares
|
Mar. 28, 2023
CAD ($)
|
Mar. 08, 2023 |
Feb. 13, 2023
CAD ($)
|
Apr. 06, 2022
CAD ($)
|
Dec. 01, 2021
CAD ($)
|
Dec. 01, 2021
ILS (₪)
|
May 28, 2024
CAD ($)
|
May 26, 2024
CAD ($)
$ / shares
|
Feb. 28, 2024
USD ($)
|
Nov. 30, 2023 |
Nov. 17, 2023
CAD ($)
|
Nov. 29, 2022
CAD ($)
shares
|
Jun. 30, 2024
CAD ($)
shares
|
Jun. 30, 2023
CAD ($)
|
Mar. 31, 2023
CAD ($)
|
Mar. 31, 2023
ILS (₪)
|
Apr. 17, 2024
CAD ($)
|
Jun. 30, 2024
CAD ($)
shares
|
Jun. 30, 2023
CAD ($)
|
Dec. 31, 2023
CAD ($)
shares
|
Dec. 31, 2021
CAD ($)
|
Dec. 31, 2020
CAD ($)
|
Jul. 12, 2024
shares
|
Apr. 16, 2024
CAD ($)
|
Dec. 31, 2022
CAD ($)
|
Dec. 01, 2021
ILS (₪)
|
|
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Number of shares issued | shares | 13,394,136 | 13,394,136 | 13,394,136 | 2,232,357 | |||||||||||||||||||||||||
| Borrowings | $ 611,000 | ||||||||||||||||||||||||||||
| Proceeds from issuing shares | $ 0 | $ 1,688,000 | |||||||||||||||||||||||||||
| Cash and cash equivalents | $ 700,000 | $ 1,321,000 | 700,000 | 1,321,000 | $ 1,813,000 | $ 2,449,000 | |||||||||||||||||||||||
| Operating loss | 2,869,000 | $ 1,752,000 | 8,499,000 | $ 5,368,000 | |||||||||||||||||||||||||
| Tax on premiums, tax on insurance | $ 73,000 | $ 199,000 | |||||||||||||||||||||||||||
| Tax on premiums, arrears of interest | 2,000 | 36,000 | |||||||||||||||||||||||||||
| Tax on premiums, penalty on failure | $ 500 | $ 8,000 | |||||||||||||||||||||||||||
| Retained earnings | (258,478,000) | $ (258,478,000) | (249,145,000) | ||||||||||||||||||||||||||
| Shareholders Percentage Held | 12.00% | ||||||||||||||||||||||||||||
| Percentage of common shares | 51.00% | ||||||||||||||||||||||||||||
| Number of loans to convertible shares | shares | 1,040 | ||||||||||||||||||||||||||||
| Plaintiffs Claiming Damages Amount | $ 15,000,000 | ||||||||||||||||||||||||||||
| Amount of aggravated exemplary and punitive damages | $ 1,000,000 | ||||||||||||||||||||||||||||
| Kadimastem Ltd [Member] | |||||||||||||||||||||||||||||
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Borrowings, interest rate | 9.00% | ||||||||||||||||||||||||||||
| Borrowings, interest rate basis | 9 | ||||||||||||||||||||||||||||
| Borrowings | $ 650,000 | ||||||||||||||||||||||||||||
| Shareholders Percentage Held | 88.00% | ||||||||||||||||||||||||||||
| Amount of signing of loan agreement | 300,000 | ||||||||||||||||||||||||||||
| Amount of execution of definitive agreement | $ 350,000 | ||||||||||||||||||||||||||||
| termination loan | $ 300,000,000 | ||||||||||||||||||||||||||||
| Imc Holdings Ltd [Member] | |||||||||||||||||||||||||||||
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Percentage Of Exercise Option Purchase | 74.00% | 74.00% | |||||||||||||||||||||||||||
| Non Brokered Private Placement [Member] | |||||||||||||||||||||||||||||
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Proceeds from issue of bonds, notes and debentures | $ 2,092,000 | ||||||||||||||||||||||||||||
| Debenture Conversion Price Per Share | $ / shares | $ 0.85 | ||||||||||||||||||||||||||||
| L5 Capital [Member] | |||||||||||||||||||||||||||||
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Outstanding indebtedness settled | $ 838,776,000 | $ 615,615 | |||||||||||||||||||||||||||
| Number of shares issued | shares | 492,492 | ||||||||||||||||||||||||||||
| Par value per share | $ / shares | $ 1.25 | ||||||||||||||||||||||||||||
| Description of unit | Each Unit consists of one Common Share of the Company and one Common Share purchase Warrant. Each Warrant entitles L5 Capital to purchase one additional Common Share at an exercise price of US$1.50 per Common Share for a period of 36 months from the date of issuance. | Each Unit consists of one Common Share of the Company and one Common Share purchase Warrant. Each Warrant entitles L5 Capital to purchase one additional Common Share at an exercise price of US$1.50 per Common Share for a period of 36 months from the date of issuance. | |||||||||||||||||||||||||||
| Revolving Credit Facility [Member] | |||||||||||||||||||||||||||||
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Aggregate consideration | $ 1,095,000 | ||||||||||||||||||||||||||||
| Borrowings, interest rate basis | 15 | ||||||||||||||||||||||||||||
| Revolving Credit Facility [Member] | Imc Holdings Ltd [Member] | |||||||||||||||||||||||||||||
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Aggregate consideration | $ 660,000 | ||||||||||||||||||||||||||||
| Borrowings, interest rate basis | 17 | ||||||||||||||||||||||||||||
| Sde Avraham Cultivation Facility [Member] | |||||||||||||||||||||||||||||
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Loss from disposal of investments | $ 4,383,000 | $ 617,000 | |||||||||||||||||||||||||||
| Workforce reduction description | The Company reduced its workforce in Israel across all functions (including executives). | ||||||||||||||||||||||||||||
| Panaxia Transaction [Member] | |||||||||||||||||||||||||||||
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Fifth installment value | $ 262,000 | ||||||||||||||||||||||||||||
| Compensation amount | $ 95,000 | ||||||||||||||||||||||||||||
| Trichome Financial Corp. (“Trichome”) [Member] | |||||||||||||||||||||||||||||
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Aggregate consideration | $ 3,375,000 | ||||||||||||||||||||||||||||
| Tjac And Certain Mym Subsidiaries [Member] | |||||||||||||||||||||||||||||
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 700,000 | $ 700,000 | |||||||||||||||||||||||||||
| Working capital of business acquisition | (10,461,000) | ||||||||||||||||||||||||||||
| Operating loss | 8,499,000 | ||||||||||||||||||||||||||||
| Net cash used in operating activities | 368,000 | ||||||||||||||||||||||||||||
| Retained earnings | $ (258,478,000) | $ (258,478,000) | |||||||||||||||||||||||||||
| Oranim Pharmacy [Member] | |||||||||||||||||||||||||||||
| Disclosure of subsidiaries [line items] | |||||||||||||||||||||||||||||
| Proceeds from issuing shares | $ 700,000 | ₪ 1,500 | |||||||||||||||||||||||||||
| Contingent consideration recognised as of acquisition date | $ 4,900,000 | ₪ 11,900 | |||||||||||||||||||||||||||
| Portion of consideration paid (received) consisting of cash and cash equivalents | $ 2,100,000 | ₪ 5,200 | $ 2,100,000 | ₪ 5,200 | |||||||||||||||||||||||||
| New Amendment Description | Through a new amendment signed January 10, 2024, all remaining unpaid installments has been postponed to April 15, 2024. All six installments (that remain unpaid) will incur a 15% interest charge. Failure to meet the remaining payments will result in the transfer of IMC Holdings Ltd. shares (51%) back to the seller, along with the revocation of the transaction. | ||||||||||||||||||||||||||||
| Remaining Unpaid Installments Business Combinations | $ 1,930,000 | ||||||||||||||||||||||||||||
| Percentage of voting equity interests acquired | 51.00% | ||||||||||||||||||||||||||||
INVENTORIES (Narrative) (Details) - CAD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Classes Of Inventories [Line Items] | ||||
| Inventory expensed to cost of goods sold | $ 22,586 | $ 17,716 | ||
| Non-cash expense related to the changes in fair value of inventory sold | 25 | 617 | ||
| Realized fair value adjustments on inventory sold in the period | $ 15 | $ 278 | $ 25 | $ 617 |
INVENTORIES - Disclosure of detailed information about inventories (Details) - CAD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Inventories [Line Items] | ||
| Capitalized costs | $ 5,694 | $ 8,992 |
| Fair valuation adjustment, net | 25 | 984 |
| Carrying value | 5,719 | 9,976 |
| Work in progress [Member] | Bulk cannabis [Member] | ||
| Inventories [Line Items] | ||
| Capitalized costs | 2,224 | 3,735 |
| Fair valuation adjustment, net | 0 | 0 |
| Carrying value | 2,224 | 3,735 |
| Finished goods [Member] | Packaged dried cannabis [Member] | ||
| Inventories [Line Items] | ||
| Capitalized costs | 2,964 | 4,667 |
| Fair valuation adjustment, net | 25 | 984 |
| Carrying value | 2,989 | 5,651 |
| Finished goods [Member] | Other products [Member] | ||
| Inventories [Line Items] | ||
| Capitalized costs | 506 | 590 |
| Fair valuation adjustment, net | 0 | 0 |
| Carrying value | $ 506 | $ 590 |
FINANCIAL INSTRUMENTS (Narrative) (Details) - CAD ($) $ in Thousands |
1 Months Ended | 6 Months Ended | |
|---|---|---|---|
May 26, 2024 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Disclosure of detailed information about financial instruments [line items] | |||
| Finance (income) expense in respect of the Convertible Debt | $ 442 | $ 0 | |
| Net proceeds of convertible debt allocated to conversion option | 327 | 0 | |
| Fair value adjustment of Warrants | $ 20 | $ (3,304) | |
| Private Placement [Member] | |||
| Disclosure of detailed information about financial instruments [line items] | |||
| Net proceeds of convertible debt allocated to conversion option | $ 327 | ||
| Percentage contribution for fair value of debenture | 16.55% | ||
| Fair value of debenture | $ 1,975 | ||
FINANCIAL INSTRUMENTS - Disclosure of information about key assumptions to measure fair value of warrants (Details) - 2023 Warrant [Member] $ / shares in Units, $ in Thousands |
May 31, 2023
CAD ($)
Year
$ / shares
|
Feb. 28, 2023
CAD ($)
Year
$ / shares
|
May 31, 2021
CAD ($)
Year
$ / shares
|
|---|---|---|---|
| Disclosure of detailed information about financial instruments [line items] | |||
| Expected volatility | 48.43% | 48.43% | 48.43% |
| Share price (Canadian Dollar) | $ 0.63 | $ 0.63 | $ 0.63 |
| Expected life (in years) | Year | 1.849 | 1.603 | 1.849 |
| Risk-free interest rate | 4.90% | 4.90% | 4.90% |
| Expected dividend yield | 0.00% | 0.00% | 0.00% |
| Fair value: Per Warrant (Canadian Dollar) | $ 0.014 | $ 0.01 | $ 0 |
| Total Warrants (Canadian Dollar in thousands) | $ | $ 7 | $ 50 | $ 0 |
EQUITY - Disclosure of composition of share capital (Details) - shares |
Jul. 12, 2024 |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|---|
| Disclosure of classes of share capital [abstract] | |||
| Number of shares issued | 2,232,357 | 13,394,136 | 13,394,136 |
| Number of shares outstanding | 2,232,357 | 13,394,136 | 13,394,136 |
EQUITY - Disclosure of changes in issued and outstanding share capital (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2024
shares
| |
| Disclosure of classes of share capital [abstract] | |
| Beginning Balance | 13,394,136 |
| Issuance of Common Shares | 0 |
| Ending Balance | 13,394,136 |
EQUITY - Disclosure of number and weighted average exercise prices of share options (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2024
Shares
$ / shares
| |
| Disclosure of classes of share capital [abstract] | |
| Options outstanding at the beginning of the period- Number of options | Shares | 325,452 |
| Options forfeited during the period- Number of options | Shares | 0 |
| Options outstanding at the end of period- Number of options | Shares | 325,452 |
| Options exercisable at the end of period - Number of options | Shares | 315,757 |
| Options outstanding at the beginning of the period- Weighted average exercise price | $ / shares | $ 28.72 |
| Options forfeited during the period- Weighted average exercise price | $ / shares | 0 |
| Options outstanding at the end of period - Weighted average exercise price | $ / shares | 28.72 |
| Options exercisable at the end of period- Weighted average exercise price | $ / shares | $ 29.53 |
SELECTED STATEMENTS OF PROFIT OR LOSS DATA - Disclosure of statement of profit and loss (Details) - CAD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Disclosure of operating segments [abstract] | ||||
| Salaries and related expenses | $ 1,372 | $ 1,802 | $ 3,250 | $ 4,260 |
| Depreciation and amortization | $ 511 | $ 778 | $ 1,191 | $ 1,587 |
DECONSOLIDATION OF ORANIM PHARMACY (Narrative) (Details) - Oranim Pharmacy [Member] $ in Thousands |
Apr. 16, 2024
CAD ($)
|
|---|---|
| Disclosure of analysis of single amount of discontinued operations [line items] | |
| Remaining unpaid installments | $ 1,930 |
| Percentage of voting equity interests transferred back to the seller | 51.00% |
SUBSEQUENT EVENTS (Narrative) (Details) ₪ in Thousands, $ in Thousands |
1 Months Ended | ||||
|---|---|---|---|---|---|
|
Jul. 01, 2024
ILS (₪)
|
Jul. 26, 2024 |
Jul. 12, 2024
shares
|
Jun. 30, 2024
CAD ($)
shares
|
Dec. 31, 2023
CAD ($)
shares
|
|
| Disclosure of non-adjusting events after reporting period [line items] | |||||
| Current borrowings | $ | $ 12,746 | $ 12,119 | |||
| Number of shares issued | 2,232,357 | 13,394,136 | 13,394,136 | ||
| Number of shares outstanding | 2,232,357 | 13,394,136 | 13,394,136 | ||
| Subsequent Event [Member] | |||||
| Disclosure of non-adjusting events after reporting period [line items] | |||||
| Minimum share price listing requirement for and compliance notice description | a formal notice from The Nasdaq Stock Market, LLC ("Nasdaq") stating that the Company has regained compliance with the minimum bid price requirement set forth in Rule 5550(a)(2) of the Nasdaq Listing. | ||||
| Subsequent Event [Member] | Non Financial Institution [Member] | |||||
| Disclosure of non-adjusting events after reporting period [line items] | |||||
| Current borrowings | ₪ | ₪ 1,113 | ||||
| Loan bearing interest rate | 12.00% | ||||
| Loan maturity date | mature 62 days from the date of signing the loan agreement. |
1 Year IM Cannabis Chart |
1 Month IM Cannabis Chart |
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