Investor Ideas #Potcasts 634, #Cannabis News and #Stocks on the Move- Interview with CEO of IM Cannabis Corp. (NASDAQ: $IMCC)
Delta, Kelowna, BC, June 8, 2022 (Investorideas.com Newswire), investorideas.com, a global news source covering leading sectors including marijuana and hemp stocks and its potcast site release today’s podcast edition of cannabis news and stocks to watch plus insight from thought leaders and experts.
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https://www.investorideas.com/Audio/Podcasts/2022/060822-StocksToWatch.mp3
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Today’s podcast overview/transcript:
In today’s podcast, Investorideas interviews Oren Shuster, CEO of IM Cannabis Corp. (NASDAQ: IMCC), where we discussed the company’s position as a multi-country operator in Germany, Canada and Israel, how each of these markets differs and synergizes as well as how IM Cannabis hopes to differentiate itself from competitors moving forward.
When asked what separates IM Cannabis Corp. from others in the cannabis space, Shuster commented, “IM Cannabis Corp is one of the first companies to produce medical cannabis, we started in 2010 in Israel, and for many years we supplied directly to patients and today we are an international company and we work in 3 of the largest legal federal markets, Canada, Germany and Israel.”
Shuster continued, “In 2010, when we started there wasn’t a market actually. In the beginning I was a bit naive and thought that it was going to cure the world and I saw the impact on patients and it was amazing and I thought it would spread and everyone would use cannabis. I was a bit naive and it took much much longer and still medical cannabis is not spread all over the world.”
When asked about some of the regulatory differences and hurdles to each of these separate markets, Shuster went on, “The Israeli market was highly regulated so from the beginning we understood that we had an advantage regarding regulations because we were coming from such a highly regulated market. So the first market we looked at entering was the E.U. market because the regulations were very similar and more than that it was the same time zone and Europe is the biggest trade partner of Israel. We had many advantages especially because for many years we supplied directly to patients and we collected a lot of data which is super important in the medical markets. We decided to go to Germany because it’s very rigid and it’s very difficult to meet the German standards, so if you can meet these standards you can work in the rest of the E.U. easily. It’s not necessarily the other way around. It’s like the gold standard I would say. We knew it would take us longer, but it’s a long term industry so if you are going to do something, do it right.”
Shuster continued, “The reason we acquired operations in Canada is because Germany is an import market. We needed high quality products for the German market but also for the Israeli market. So that’s the reason why we acquired indoor facilities of premium and ultra premium products. Now we have a complete supply chain; starting in Canada, products go to Germany and Israel, from Germany we have the hub where we can send products to Germany or the rest of the E.U. market. So now we have made a complete supply chain.”
When asked about some of the unique differences and challenges that each of these markets creates, Shuster elaborated, “The Israeli market is a very unique market because in Israel the black market is more expensive than the medical market. I’m not familiar with any other market in the world that behaves like that. The reason for this is because Israel is a small country surrounded by enemies so we have real borders with almost no smuggling of cannabis across the borders. The army is gaurding the border against terrorists so to take the risk on smuggling cannabis is not the smartest thing to do in high volume. So the supply is grown locally. Israel is a very small country and we have mostly dessert so it’s very easy to track down and monitor illegal grows. So there is high demand and not a huge supply so the prices are very high. There is also a third market which is where people buy medical cannabis and sell it back to the black market at a premium. So any cannabis user has a huge incentive to get a prescription and buy in a pharmacy. So the only reason the market isn’t exploding with users is because there aren’t enough Doctors to prescribe cannabis. I believe that the market will grow significantly once there are more openings of physicians that prescribe medical cannabis. You can think of Israel like the Michigan market. There are many similarities and I believe it will be roughly the same size as it has roughly the same population.”
Shuster continued, “Germany is a very different market. In Germany medical cannabis was very expensive but now you are starting to see prices go down. It was more than 20 EUROS per Gram and the average price on the black market was closer to 10 EUROS per gram and now you are starting to see prices go down closer to the black market. This is still very high when you do the dollar conversion. In Germany any Doctor can prescribe cannabis. You can go to the pharmacy and pay out of pocket and buy cannabis prescriptions in Germany that are being reimbursed by the insurance companies. There was a change in the market because now any pain physician that prescribes cannabis gets immediately reimbursed. So all the cannabis being prescribed by pain clinics or physicians is being reimbursed. So we are seeing this change in the market. We are waiting to see this summer what the Ministry of Health will publish. They want to do it next year but there is a strong economic pressure in Germany right now because of their energy dependence on Russia, so they think that cannabis is an excellent way to make more money with taxation.”
Last month IM Cannabs Corp. provided financial results for the three months ended March 31, 2022 with highlights such as: increased revenues of 169% year-over-year to $23.6 million, gross profit, before fair value adjustments, was $6.4 million, representing an increase of 37% from Q1 2021 and 67% sequentially as well as completing four(1) strategic acquisitions in Israel, including the country's largest retail and online pharmacy business and a trade and distribution center with an IMC-GDP license.
"We continue to progress well on our path to profitability and achieved another quarter of record revenues, which grew 169% year-over-year in the first quarter," said Oren Shuster, Chief Executive Officer of IMC. "We execute key initiatives that drive margin expansion within each of our market segments and across our operating footprint, which reflect the benefits of integrating our global model. In Israel, we work to consolidate four of the country's leading pharmacies and centralize our distribution and customer support to potentially create significant cost savings while strengthening our brand presence. We also increasingly leverage yield from our Canadian cultivation facilities for our products imported to and sold in Israel, which exhibit a gross margin profile that is nearly double that of products sourced from suppliers."
Shuster went on to discuss how IM Cannabis Corp. assesses prospective product partners and the quality of their products, how he expects each of these markets to develop and expand in the coming years as well as general trends in the International cannabis industry when it comes to the import/export market and how he expects this to expand and develop.
To find out more information about IM Cannabis Corp. visit their website here.
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