TORONTO and GLIL YAM, Israel - IM Cannabis Corp. (CSE: NASDAQ:IMCC) (NASDAQ: IMCC), a medical cannabis company with operations in Israel and Germany, announced today that its common shares are now trading on a 6:1 post-consolidated basis on both the Canadian Securities Exchange (CSE) and the Nasdaq Stock Market LLC (NASDAQ). This stock consolidation was effective as of today, following the initial announcement on July 5, 2024.
The company’s trading symbol remains unchanged as "IMCC" on both the CSE and NASDAQ. The new CUSIP and ISIN numbers post-consolidation are 44969Q406 and CA44969Q4060, respectively. As a result of the consolidation, the total number of common shares has been reduced from 13,394,136 to 2,232,357. Fractional shares resulting from the consolidation were rounded to the nearest whole number or canceled if less than one-half.
Registered shareholders have been provided with letters of transmittal by Computershare Investor Services Inc., the company’s registrar and transfer agent, with instructions for exchanging their shares.
These letters were mailed to shareholders of record as of today. Shareholders holding shares through intermediaries should contact their respective institutions for details on the consolidation process.
IM Cannabis operates in the medical cannabis sector, primarily in Israel and Germany, which are among the largest markets for medical cannabis. The company has focused on sustainable and profitable growth in these regions and leverages a data-driven approach and a globally sourced product supply chain.
In Israel, IM Cannabis works through Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients. The company also manages retail pharmacies, online platforms, and distribution centers in Israel. In Germany, its operations are conducted through Adjupharm GmbH, distributing cannabis to pharmacies for medical patients.
This news is based on a press release statement from IM Cannabis Corp.
In other recent news, the company's Board of Directors has also seen changes, with Oren Shuster replacing Marc Lustig as director and Chairman of the Board.
Despite a decrease in financial performance in Q1 2024, with revenue falling to $12.1 million and gross profit to $1.8 million, IM Cannabis Corp. remains hopeful about potential growth in the German market. It is optimizing its supply chain in Germany and promoting its brand through online clinics and physician education.
In a surprising move, IM Cannabis Corp. decided not to proceed with the acquisition of Oranim Pharmacy in Israel. These recent developments reflect the company's strategic focus on the German market and its efforts to adapt to changing regulatory environments. The company expects to leverage its infrastructure and supply agreements for growth in the German market while continuing to work with online clinics, physicians, and patient groups to drive demand.
InvestingPro Insights
In light of IM Cannabis Corp.'s recent stock consolidation announcement, investors are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, IM Cannabis Corp. has a market capitalization of USD 4.97 million. The company's revenue for the last twelve months as of Q1 2024 stands at USD 35.69 million, reflecting a decrease of 10.26% from the previous period. Additionally, the gross profit margin during the same timeframe was 18.04%, with an operating income margin of -24.24%.
An InvestingPro Tip highlights that IMCC is trading at a low revenue valuation multiple, which could be of interest to value investors seeking potential opportunities. Another notable InvestingPro Tip for IMCC is that the stock has experienced significant volatility, with the price having fallen 41.34% over the last three months. This could indicate a higher risk profile for the stock, which may be a consideration for more conservative investors.
For those seeking more in-depth analysis, there are 11 additional InvestingPro Tips available at https://www.investing.com/pro/IMCC, which can provide further guidance on the company's financial situation and stock performance. Investors can also take advantage of the exclusive offer to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription by using the coupon code PRONEWS24.
It's important for shareholders and potential investors to keep these metrics in mind, especially considering the company's forward-looking statements about amplifying its commercial and brand power. With the recent stock consolidation, the market's response and the company's ability to navigate through its significant debt burden and cash burn will be crucial in determining its future success in the competitive medical cannabis industry.
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