TORONTO and GLIL YAM, Israel - IM Cannabis Corp. (CSE: NASDAQ:IMCC) (NASDAQ: IMCC), a medical cannabis provider in Israel and Germany, announced a share consolidation plan that will combine six current shares into one new share. The consolidation is set for July 12, 2024, pending final approvals from the Canadian Securities Exchange (CSE) and Nasdaq Stock Market LLC (NASDAQ).
Following the consolidation, the total number of common shares will decrease from approximately 13.4 million to 2.2 million. The company's CUSIP and ISIN numbers will also change to 44969Q406 and CA44969Q4060, respectively, although its name and stock symbols will remain the same.
Shareholders will not receive fractional shares in the consolidation; fractions equal to or greater than one-half will be rounded up to the nearest whole number, while smaller fractions will be canceled. The terms of the company's convertible securities will be adjusted accordingly.
Registered shareholders will be provided with a letter of transmittal by Computershare Investor Services Inc., detailing the exchange process for their shares. Beneficial shareholders, those holding shares through a financial intermediary, will have their holdings automatically adjusted.
IM Cannabis operates within the medical cannabis markets of Israel and Germany through its commercial relationships and subsidiaries, focusing on sustainable and profitable growth. The company emphasizes compliance with stringent regulatory standards and aims to expand its commercial and brand influence globally.
The information for this article is based on a press release statement from IM Cannabis Corp.
In other recent news, IM Cannabis Corp. has announced significant growth in its German subsidiary, Adjupharm GmbH, supported by a new supply agreement with GlassHouse Botanics Inc., a company recently certified with EU-Good Manufacturing Practice (EU-GMP). This development follows the partial legalization of cannabis in Germany.
The company is also adjusting its Board of Directors, with Oren Shuster replacing Marc Lustig as director and Chairman of the Board.
Despite a decline in financial performance in the first quarter of 2024, with revenue decreasing to $12.1 million and gross profit dropping to $1.8 million, IM Cannabis Corp. remains optimistic about potential growth in the German market. In preparation for this, the company is optimizing its supply chain in Germany and promoting its brand through online clinics and physician education.
Additionally, IM Cannabis Corp. has decided not to proceed with the acquisition of Oranim Pharmacy in Israel. These recent developments reflect the company's strategic focus on the German market and its efforts to adapt to changing regulatory environments.
InvestingPro Insights
As IM Cannabis Corp. (IMCC) moves forward with its share consolidation plan, it's important for investors to consider the company's current financial health and market performance. According to real-time data from InvestingPro, IMCC has a market capitalization of 6 million USD, highlighting its relatively small size within the industry. The company's Price to Book ratio, as of the last twelve months ending Q1 2024, stands at 0.86, which may indicate that the stock is potentially undervalued relative to its assets.
In terms of performance metrics, IMCC's revenue for the last twelve months as of Q1 2024 is reported at 35.69 million USD. However, investors should note the company's revenue growth has declined by 10.26% during the same period, which may raise concerns about its near-term revenue trajectory. Furthermore, the company's operating income margin was -24.24%, reflecting challenges in achieving profitability.
InvestingPro Tips for IMCC suggest that the stock is currently in oversold territory, as indicated by the Relative Strength Index (RSI), and that it is trading at a low revenue valuation multiple. These factors could attract value-oriented investors looking for potential rebound opportunities. Additionally, with the stock experiencing significant volatility, it may appeal to traders who capitalize on price fluctuations.
For those considering a deeper dive into IMCC's financials and future prospects, there are additional InvestingPro Tips available that could provide further insights. Interested investors can access these tips and more detailed analysis at https://www.investing.com/pro/IMCC. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of investment information and analysis that could be pivotal in making informed decisions. There are 9 additional InvestingPro Tips listed for IMCC, which could help investors gauge the company's financial health and market position more accurately.
The upcoming share consolidation of IMCC is a strategic move that may affect investor perception and the stock's liquidity. With the provided InvestingPro Insights and additional tips, shareholders and potential investors can better navigate the changes and assess the implications for their investment strategies.
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