TORONTO and GLIL YAM, Israel - IM Cannabis Corp. (NASDAQ: NASDAQ:IMCC) (CSE: IMCC), a medical cannabis provider in Israel and Germany, announced Monday the appointment of Shmulik Arbel to its board of directors, effective September 9, 2024. Arbel, who recently retired as Deputy CEO of Leumi, Israel's largest bank, is expected to contribute his extensive experience in strategic planning, finance, and corporate governance to the company.
Oren Shuster, CEO of IM Cannabis, expressed confidence in Arbel's capabilities, highlighting his international background and significant track record in the banking and finance sector as assets that will support the company's strategic initiatives. Arbel's career at Leumi spanned over 25 years, with key positions including head of retail banking, head of the corporate division, and chairman of Leumi UK.
Arbel himself is honored to join the board, looking forward to applying his expertise to aid IM Cannabis's growth and establishment as a leading brand in the cannabis market. He holds both a BA and MBA from Tel Aviv University.
IM Cannabis operates in Israel through Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, and runs medical cannabis retail pharmacies, online platforms, and distribution centers. In Germany, the company works through Adjupharm GmbH, distributing cannabis to medical patients via pharmacies.
The press release also contains forward-looking statements regarding the anticipated benefits of Arbel's appointment, including his potential impact on the company's growth and profitability, particularly in the German market. These statements are based on management's estimates and opinions as of the date of the press release and are subject to various risks and uncertainties that could cause actual results to differ materially.
Investors are cautioned not to place undue reliance on these forward-looking statements, which are qualified by the risks and uncertainties outlined in the company's annual report and other disclosures available on SEDAR+ and Edgar. This news article is based on a press release statement from IM Cannabis Corp.
In other recent news, IM Cannabis Corp. has maintained a Buy rating, following its second-quarter 2024 revenue report. The company witnessed a 12% year-over-year increase in revenue, reaching C$14.8 million, significantly bolstered by a 129% surge in sales in Germany. However, the company's overall margins were affected by the need to offload inventory in Israel, resulting in lower profitability. The analyst from Roth/MKM reaffirmed the Buy rating and the $6.00 price target, despite acknowledging that IM Cannabis's potential is somewhat constrained by limited access to supply in the near term.
In the wake of cannabis legalization in Germany, IM Cannabis reported a 200% increase in sales in Q2 compared to Q1 2024. Despite an 11.7% increase in revenue compared to the same quarter in the previous year, the company reported a decrease in gross profit due to inventory clearance and slow-moving stock. Furthermore, the company noted a reduction in adjusted EBITDA loss, net loss, and diluted loss per share compared to Q2 2023. These are recent developments that have shaped the company's current standing in the market.
InvestingPro Insights
As IM Cannabis Corp. (NASDAQ: IMCC) welcomes Shmulik Arbel to its board of directors, investors may be interested in the latest financial metrics and market analysis provided by InvestingPro. The company's market capitalization stands at a modest 5.01 million USD, which could indicate a low revenue valuation multiple according to one of the InvestingPro Tips. This could be relevant for investors looking for entry points in companies that may be undervalued relative to their sales figures.
InvestingPro Data shows that IM Cannabis has experienced a quarterly revenue growth of 11.68% in Q2 2024, signaling a positive short-term trend in sales. However, the company's revenue declined by 8.25% over the last twelve months as of Q2 2024, which suggests challenges in sustaining longer-term growth. Additionally, the company's gross profit margin stands at 12.25%, which may be of interest to investors focusing on profitability indicators.
One of the InvestingPro Tips indicates that the stock price movements of IM Cannabis are quite volatile. This is reflected in the price total returns, with a significant 25.08% drop over the last month. Investors might find this volatility an important factor to consider when evaluating the timing and risk of their investments.
For those seeking more in-depth analysis, there are additional InvestingPro Tips available, providing valuable insights into IM Cannabis's financial health and market performance. These tips can be accessed through the InvestingPro platform, offering a comprehensive resource for investors looking to make informed decisions.
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