TORONTO - IM Cannabis Corp. (CSE: NASDAQ:IMCC) (NASDAQ: IMCC), a medical cannabis company with operations in Israel and Germany, has announced significant growth in its German subsidiary, Adjupharm GmbH, following the partial legalization of cannabis in Germany on April 1st. This growth is supported by a new supply agreement with GlassHouse Botanics Inc., which has recently achieved EU-Good Manufacturing Practice (EU-GMP) certification.
Germany's recent legislative change has opened the door for a potential increase in the medical cannabis market. With a population over 83 million, the market could see substantial growth compared to established markets like California. IMC's CEO, Oren Shuster, suggests that even with a conservative estimate of 1% market penetration and an average spend of $200 per month, the German market could reach a run rate of around $2 billion by the end of 2025.
In preparation for this opportunity, IMC Germany has focused on cost management and growth, reporting a 182% increase in 2023, significantly outperforming the market. The company attributes this success to its strategic supply chain enhancements, including partnerships like the one with GlassHouse Botanics, which will support the demand in the evolving German medical cannabis market.
All cannabis flowers sold through pharmacies in Germany must originate from an EU-GMP certified facility. With fewer than 20 Canadian cannabis producers holding this certification, partnerships like the one with GlassHouse Botanics are crucial for IMC Germany to maintain a robust and exclusive supply chain. IMC Germany's capability to conduct EU-GMP 3rd country inspections has been instrumental in this process.
Jeff Black, CEO and Founder of GlassHouse Botanics, expressed confidence that their state-of-the-art facility would help meet the growing demand in Germany, thanks to their partnership with IMC Germany and the EU-GMP certification.
In addition to its supply strategy, IMC announced a change to its Board of Directors. Marc Lustig has stepped down as director and Chairman of the Board, with Oren Shuster taking over the position. Shuster expressed gratitude to Lustig for his contributions and dedication to the company.
IMC continues to focus on providing premium cannabis products to the medical markets in Israel and Germany, aiming for sustainable and profitable growth within the strict regulatory environments.
This information is based on a press release statement from IM Cannabis Corp. and is intended to provide insights into the company's growth and strategic partnerships in the German market.
In other recent news, IM Cannabis Corp. reported a decline in financial performance in the first quarter of 2024, with a decrease in revenue to $12.1 million and a drop in gross profit to $1.8 million. Despite these financial setbacks, the company is shifting its focus to the German market, following recent regulatory changes that have legalized cannabis. The company's CEO, Oren Shuster, expressed optimism about the potential for growth in this market. IM Cannabis is making efforts to optimize its supply chain in Germany and promote its brand through online clinics and physician education. In other company developments, IM Cannabis decided not to proceed with the acquisition of Oranim Pharmacy in Israel. These are the recent developments in the company's operations and strategies.
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