IM Cannabis Corp. (the “Company” or “IM Cannabis“) (CSE: IMCC) (NASDAQ: IMCC), a leading medical and adult-use recreational cannabis company with operations in Israel, Canada, and Germany, today announced new strategic imperatives designed to enhance organizational efficiency and reduce operating costs while further responding to the increased demand for premium, indoor-grown Canadian cannabis from Israeli consumers. As part of these changes, Focus Medical Herbs Ltd. (“Focus Medical”) has decided to close the Sde Avraham cultivation farm in Israel that it owns and operates. Focus Medical has an exclusive commercial agreement with IM Cannabis to distribute its production under the IMC brand. Focus Medical will complete the closure of the Sde Avraham cultivation farm during the second quarter of 2022. (Technical 420)

The closure of Sde Avraham farm will allow the Company to better leverage its fully licensed import-export supply chain and focus on importing premium and ultra-premium products from its subsidiaries in Canada and other leading Canadian suppliers. IM Cannabis will continue to support the cultivation sector in Israel by concentrating on purchasing from third-party cultivation facilities in Israel that have advanced technological greenhouses and will rely on existing inventory of proprietary genetics.

The Company also completed an amendment to increase the availability under the existing revolving credit facility with a private Canadian creditor that is maintained by Trichome JWC Acquisition Corp. (“TJAC”) to $15 million (the “Revolving Credit Facility”) to better support the working capital needs associated with its global supply chain and the growing demand for its premium Canadian-grown cannabis. Amounts drawn under the Revolving Credit Facility are margined against eligible accounts receivable and inventory and are secured against the assets of the Company’s Canadian subsidiaries. The term of the Revolving Credit Facility was extended to May 2023. For more information on the Revolving Credit Facility, please see the Company’s annual information form dated March 31, 2022, available on the Company’s SEDAR profile.

“IM Cannabis is well positioned to meet the elevated demand for premium cannabis through our global supply chain and cultivation facilities in Canada,” said Oren Shuster, Chief Executive Officer of IM Cannabis.

“Over the last decade, Focus Medical has been the main cultivator of our products sold in the Israeli market and we are grateful for the team’s hard work and dedication. Our ability to import from our Canadian facilities provides us with a high-quality and reliable source of supply for the Israeli and German medical markets as they continue to evolve. We believe this strategic transition will strengthen our operating model and ultimately support sustainable, long-term growth for our stakeholders.”

In 2021, the Company established a strong presence in Canada through acquiring two indoor cultivation facilities of TJAC and MYM Nutraceuticals Inc. (“MYM”), which grow premium and ultra-premium products and have leading brands in the adult-use recreational Canadian market, WAGNERS and Highland Grow. The TJAC and MYM acquisitions enable the Company to seamlessly import these products into Israel and provide Israeli patients with premium products, some of which are already sold in pharmacies in Israel. In the first quarter of 2022, the Company launched its WAGNERS brand in Israel. (Click here to view entire article)