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TORONTO and GLIL YAM, Israel - IM Cannabis Corp. (NASDAQ: IMCC) (CSE: IMCC), an international medical cannabis company with a market capitalization of $5.8 million and annual revenue of $37.85 million, announced its intention to voluntarily delist its common shares from the Canadian Securities Exchange (CSE). The company’s shares will remain listed on the NASDAQ under the ticker "IMCC." According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.
The decision to delist from the CSE is motivated by the company’s evaluation of potential transactions that could be hindered by the dual listing. IM Cannabis cites the costs, approvals, and delays associated with maintaining listings on both exchanges as reasons for the change. The company believes that a single listing on NASDAQ will centralize its market presence, potentially benefiting long-term liquidity and shareholder value. While the stock has seen a notable 6.25% gain over the past week, InvestingPro data reveals a challenging six-month period with a 49.32% decline. For deeper insights into IMCC’s valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The company has expressed appreciation for the CSE’s role in its initial public offering and access to capital markets. The expected final day of trading on the CSE, pending exchange approval, is set for the close of business on June 2, 2025. InvestingPro analysis indicates some financial challenges, with a current ratio of 0.72 suggesting short-term liquidity concerns.
IM Cannabis operates in Israel and Germany, two of the largest medical cannabis markets, and emphasizes its commitment to responsible growth within strict regulatory frameworks. In Israel, its operations include the import and distribution of cannabis through Focus Medical Herbs Ltd., while in Germany, it operates through Adjupharm GmbH, distributing cannabis to pharmacies for medical patients. InvestingPro subscribers can access additional insights, including 6 more ProTips and detailed financial metrics that provide a comprehensive view of the company’s operational performance and market position.
The press release includes forward-looking statements regarding the anticipated delisting from the CSE and continued trading on NASDAQ. However, these statements are based on current management beliefs and are subject to risks and uncertainties that could cause actual results to differ materially.
This news is based on a press release statement from IM Cannabis Corp. and contains no endorsement of the company’s claims. The information presented is intended to provide a factual report on the company’s announcement.
In other recent news, IM Cannabis Corp reported a 25% increase in Q4 2024 revenue compared to the previous year, reaching €13.3 million. The company also achieved a positive adjusted EBITDA of €500,000 for the quarter, marking a significant improvement from a loss in the same period last year. Despite a net loss of €11.8 million for 2024, the company saw an 11% increase in annual revenue, driven by a strong market presence in Germany. Concurrently, IM Cannabis faced a Nasdaq non-compliance issue due to stockholders’ equity falling below the required minimum, with a plan for compliance due by May 26, 2025. Shareholders recently approved key proposals at the company’s annual meeting, including the election of directors and the completion of the Focus Transaction. The company completed a secured debenture offering, raising C$2,301,174.70, which insiders Oren Shuster and Rafael Gabay participated in. Additionally, IM Cannabis is planning to acquire the remaining 26% interest in Focus Medical Herbs Ltd. from Ewave Group Ltd., subject to shareholder approval. The company is actively exploring options to regain compliance with Nasdaq requirements while focusing on growth in the German market.
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