IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) released financial results for its second quarter ended June 30, 2022, revealing revenues increased 114% year-over-year to CA$23.8 million ($18.43 million).
Q2 2022 Financial Results
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Gross profit was CA$4 million compared to a loss of CA$568,000 in Q2 2021.
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Adjusted EBITDA loss was CA$4.6 million in Q2 2022 compared to a loss of CA$5.7 million in Q2 2021.
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Net loss was CA$18.98 million, compared to net loss of CA$5.01 million in Q2 2021.
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Cash and cash equivalents totaled CA$5.86 million as at June 30, 2022, compared to CA$34.05 million as at December 31, 2021.
Q2 2022 Other Highlights
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Implemented streamlining and restructuring plan in Canada, with expected cash cost savings of approximately CA$4 million per year, including the sale of SublimeCulture Inc.
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Completed the closure of the Sde Avraham cultivation farm that Focus Medical Herbs Ltd. owned and operated in Israel, with expected cash cost savings of CA$2.5 million per year, and further centralized operations of recently acquired assets in the country.
Oren Shuster, CEO of IMC, stated, "Our long-term strategy relies on geographic diversification and preparation to target, upon legalization, new adult-use recreational cannabis markets in Germany followed by the rest of Europe. We are preparing to leverage our global cultivation, brand, and commercial expertise to profitably capture substantial market share across Europe. Our strength is in properly positioning our brands in different markets and the introduction of new SKUs to consistently exceed consumer and patient expectations."
"Like in Israel, we have embarked on a thorough restructuring of our operations in Canada as part of our global integration efforts and to reduce costs. To that end, we have finalized the sale of Sublime, which together with our streamlining initiatives in Israel, is expected to yield CA$6.5 million in annual cash savings. We expect the majority of savings to begin to materialize in the third quarter, with full realization in the fourth quarter of this year," concluded Shuster.
Photo: Benzinga; Sources: courtesy of Kindel Media via Pexels
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