IMC strengthens its Israeli retail position with the acquisition of leading retailer and distributor Pharm Yarok and Rosen High Way
  • Strategically located, industry leading retailer with annual sales of approximately $ 8 million
  • Purchase price of CAD 4.6 million

TORONTO, ON, GLIL YAM and NATANYA, ISRAEL / ACCESSWIRE / July 28, 2021 / IM Cannabis Corp. (“IMC” or the “Company”) (CSE: IMCC, NASDAQ: IMCC), a multi-country operator (“MCO”) in the medical and recreational adult cannabis sectors with offices in Israel, Germany and Canada , is pleased to announce the acquisition of the outstanding common stock of RA Yarok Pharm Ltd. (“Pharm Yarok”), Rosen High Way Ltd. (“Rosen High Way”) and High Way Shinua.Ltd. (“HW Shinua”) from IMC Holdings Ltd. (“IMC Holdings”), a wholly-owned Israeli subsidiary of the Company, and is accelerating the implementation of IMC’s vertical integration strategy in the Israeli retail market.

On July 28, 2021, IMC Holdings concurrently entered into definitive share purchase agreements to acquire all of the outstanding common shares of (1) Pharm Yarok, a leading medical cannabis pharmacy in central Israel; (2) Rosen High Way, a trading and distribution center providing medical cannabis storage, distribution services and logistics solutions for Cannabis companies and pharmacies in Israel; and (3) HW Shinua, an applicant for a medical cannabis transportation license (the “Transportation License”) from the Israel Medical Cannabis Department (“IMCU”), the receipt of which will allow HW Shinua to ship large quantities of medicinal cannabis to and from the pharmacy of Pharm Yarok and the Rosen High Way distribution center and to and from third parties in the medical cannabis sector including medical cannabis grow facilities, pharmacies, manufacturers and distribution centers across Israel (the acquisitions of Pharm Yarok, Rosen High Way and HW Shinua are collectively known as The total consideration for the acquisition is approximately $ 4.6 million1 in cash, of which $ 1.3 million in consideration for the equity of IMC from the shareholders of Pharm Yarok, Rosen High Way and HW. will be invested in IMC Shinua. Completion of the acquisition (“Closing”) is subject to receipt of all necessary approvals, including de r IMCU, dependent. The combined current annual sales rate2 of Pharm Yarok, Rosen High Way and HW Shinua is approximately USD 8 million with an expected positive EBITDA of approximately USD 1 million.

“The Israeli medical cannabis market is growing and developing very quickly. Pharm Yarok is one of the leading medical cannabis retailers in Israel, selling approximately 1,000 kg of medical cannabis annually and serving over 2,000 patients monthly. The acquisition significantly advances our retail expansion strategy initiated earlier this year with the acquisition of Panaxia-to-the-Home’s distribution and in-house pharmacy activities, ”said Oren Shuster, CEO of IMC.

We expect that the continuation of our vertical integration strategy will increase our purchasing power with suppliers, create potential synergies with our established call center and online activities and offer additional margins in direct sales and up-selling with a growing product range.

Oren Shuster, CEO of IMC

We welcome the management teams and employees at Pharm Yarok and Rosen High Way with their retail and branding expertise.

Upon completion of the acquisition, it is expected that assets will be integrated that include: a license to sell medical cannabis to patients (including the option to sell it online), a large customer service center, a virtual shop and online properties, intellectual property, a logistics and storage center with specialized storage space for over 350 kg of medical cannabis as well as a big Customer base. IMC expects to consolidate the financial results of Pharm Yarok, Rosen High Way and HW Shinua (“Company”) at the time the definitive share purchase agreements are executed and before they are entered into.

1 All numbers are in Canadian dollars.
2 The annual turnover term is calculated based on the annualization of the available results for the previous period in 2021

About IM Cannabis Corp.

IMC is an MCO in the field of medicinal and recreational cannabis for adults with headquarters in Israel and offices in Israel, Germany and Canada. Over the past decade, the company believes that the IMC brand has become synonymous with quality and durability in the Israeli medical cannabis market. The company has also expanded its business to provide intellectual property-related services to the medical cannabis industry.

In Europe, IMC operates through Adjupharm GmbH, a Germany-based subsidiary and an EU-GMP-certified distributor of medical cannabis. IMC’s European presence is complemented by strategic alliances with various pan-European EU GMP breeders and traders in order to benefit from the increased demand for medical cannabis products in Europe and to make the IMC brand and its product portfolio accessible to European patients.

In Canada, IMC operates through Trichome d / b / a JWC. JWC is a licensed producer based in Kitchener, Ontario, selling cannabis flower, pre-rolls, hashish and kief to the Canadian recreational cannabis market under the JWC and WAGNERS brands. JWC works to high standards in providing clean, consistent, premium aeroponically grown cannabis products to medical patients and the adult market across Canada and the world. IMC also operates MYM Nutraceuticals Inc. and its licensed manufacturing subsidiary Highland Grow Inc.

About Focus Medical Herbs Ltd.

Focus Medical Herbs Ltd. (“Focus Medical”) is one of eight originally licensed medical cannabis manufacturers in Israel and has more than 10 years of experience growing high quality medical cannabis in the Israeli market. Focus Medical is an “Affiliate” of the Company under IFRS (as defined below) due to the Company’s “de facto control” over Focus Medical, although it has no direct or indirect ownership in it. Focus Medical has an exclusive commercial agreement with IMC to distribute its manufacturing under the IMC brand. In addition to its own capabilities, Focus Medical has supply agreements with six other breeders for additional care using its proprietary genetics and for sale under the IMC brand.

About RA Yarok Pharm Ltd. and Rosen High Way Ltd.

RA Yarok Pharm Ltd. (“Pharm Yarok”) is one of the leading pharmacies in Israel specializing in medical cannabis patients. Pharm Yarok supplies more than 2,000 medical cannabis patients every month. Pharm Yarok is based in Netanya, a city in central Israel, and has been serving patients since June 2020. Pharm Yarok has a professional team of pharmacists, an extensive service center, national sales activities and an in-house courier service that delivers medical cannabis to patients across the country.

Rosen High Way Ltd. is involved in the logistics, storage, collection and distribution of medical cannabis products and solutions for Cannabis companies and pharmacies. Rosen High Way is based in Netanya and holds licenses that conform to Israel’s good sales and safety practices.

Original press release

Published by NCV Newswire

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