IMC Partners with Leading US Brand to Launch cbdMD Products in Israel and Provides Further Details on Panaxia Transaction
TORONTO, ON and GLIL YAM, ISRAEL / ACCESSWIRE / August 9, 2021 / IM Cannabis Corp. (“IMC” or the “Company”) (CSE:IMCC, NASDAQ:IMCC), a multi-country operator (“MCO”) in the medical and adult-use recreational cannabis sector with operations in Israel, Germany and Canada, is pleased to announce the signing of a binding letter of intent (the “Binding LOI”) with cbdMD, Inc. (YCBD, YCBDpA), one of the leading and most highly trusted and recognized CBD health & wellness companies. Pursuant to the Binding LOI, the Company will be the exclusive importer of cbdMD, Inc.’s products to Israel. The Company is also providing details of the shares issued as part of the consideration paid in connection with the previously announced acquisition of Panaxia-to-the-Home online pharmacy from Panaxia Pharmaceutical Industries Israel Ltd. and Panaxia Logistics Ltd., part of the Panaxia Labs Israel, Ltd. group of companies (“Panaxia”) (PNAX).
Signing of Binding LOI with cbdMD
On August 3, 2021, IMC and cbdMD, Inc. executed the Binding LOI that will grant IMC an exclusive right to import, sell, distribute and market cbdMD products in Israel using the cbdMD brand name and trademark, subject to the legalization of CBD for non-medical purposes in Israel meeting all regulatory requirements for the import, sale, distribution and marketing of CBD products in Israel and meeting the minimum quantity targets as set out in the Binding LOI.
cbdMD is an industry leader in the United States, offering a full range of CBD products and is recognized for its strategic partnerships in sports and fitness. It was the first US based CBD company to be listed on the NYSE:American Stock Exchange.
We are excited to enter this partnership with a leading company such as cbdMD, and to extend this leadership into the Israeli market. The Israeli CBD market is expected to reach up to US$475 million by 20251.
Oren Shuster, IMC’s CEO
With this agreement with cbdMD, we have the opportunity to shape the Israeli CBD market upon legalization and plan to leverage IMC’s new and expanding retail presence, distribution capabilities and data-driven insights to reach our patients and delight our future consumers with a leading CBD brand such as cbdMD.
“We are excited to partner with IM Cannabis Corp and to enter the Israeli market. The cbdMD brand continues to grow internationally as we are now represented in over 30 countries,” said Martin Sumichrast, Chairman & co-CEO of cbdMD, Inc.
Panaxia Transaction Issuance of Shares
As previously announced in press releases dated April 30 and June 1, 2021, the Company’s wholly-owned Israeli subsidiary, IMC Holdings Ltd., signed a definitive agreement with Panaxia, pursuant to which IMC will acquire Panaxia’s trading house and in-house pharmacy activities, for an aggregate purchase price of $7.2 million (the “Transaction”).
The Transaction purchase price was to be satisfied by a combination of $2.9 million in cash (the “Cash Consideration”) and $4.3 million in common shares of the Company (“Consideration Shares”). The Cash Consideration was paid in two installments according to the terms of the Transaction.
1Based on Company management assessment, and Manufacturers’ Association of Israel Study, conducted by Deloitte, September: Findings of Market Research Regarding Incorporation of CBD Into Consumer Goods, September 2020
To satisfy the share consideration component of the Transaction, the Company will issue up to five instalments of Consideration Shares. The deemed price of each Consideration Share is calculated based on the average closing price of the Company’s common shares on the Nasdaq Capital Market over the 10 trading day period immediately preceding the date of issuance.
On July 30, 2021, the Company issued the first instalment of 142,007 Consideration Shares at a price of US$5.009 per Consideration Share, representing an aggregate value equal to approximately US$ 711,313 with up to four additional instalments (each, an “Additional Instalment”) expected. The next three Additional Instalments will be issued on the last trading day of each of the next three months. The fourth Additional Instalment will be issued upon the later of (i) four months from the issuance of the first instalment of Consideration Shares; or (ii) the second closing of the Transaction, which is subject to the approval of the Israeli Ministry of Health.
About cbdMD, Inc.
cbdMD, Inc. is one of the leading and most highly trusted and most recognized cannabidiol (CBD) brands with a comprehensive line of U.S. produced, THC-free1 CBD products. The cbdMD brand currently includes over 130 SKU’s of high-grade, premium CBD products including CBD tinctures, CBD gummies, CBD topicals, CBD capsules, CBD bath bombs, CBD bath salts, CBD sleep aids and CBD drink mixes. The Paw CBD brand of pet products includes over 45 SKUs of veterinarian-formulated products including tinctures, chews, topicals products in varying strengths, and the CBD Botanicals brand of beauty and skincare products features 15 SKUs, including facial oil and serum, toners, moisturizers, clear skin, facial masks, exfoliants and body care. Please visit www.cbdMD.com, follow cbdMD on Instagram and Facebook, or visit one of the 6,000 retail outlets that carry cbdMD products.
1THC-free is defined as below the level of detection using validated scientific analytical methods.
About IM Cannabis Corp.
IMC is an MCO in the medical and adult-use recreational cannabis sector, headquartered in Israel and with operations In Israel, Germany, and Canada. Over the past decade, the Company believes that the IMC brand has become synonymous with quality and consistency in the Israeli medical cannabis market. The Company has also expanded its business to the retail sector with acquisitions of medical cannabis retail pharmacies and online platforms, distribution centers and logistics hubs enabling safe delivery of medical cannabis and control over the entire value chain, from seed to patients.
In Europe, IMC operates through Adjupharm GmbH, a German-based subsidiary and EU-GMP-certified medical cannabis distributor. IMC’s European presence is augmented by strategic alliances with European and Canadian EU-GMP cultivators and distributors to capitalize on the increased demand for medical cannabis products in Europe and bring the IMC brand and its product portfolio to European patients.
In Canada, IMC operates through Trichome JWC Acquisition Corp. d/b/a JWC. JWC is a licensed producer located in Kitchener, Ontario, selling cannabis flower, pre-rolls, hash and kief in the Canadian recreational cannabis market under the JWC and WAGNERS brands. JWC operates with high standards for providing clean, consistent, aeroponically-grown premium cannabis products to medical patients and the adult-use market throughout Canada and the world. IMC also operates MYM Nutraceuticals Inc. and its licensed producer subsidiary, Highland Grow Inc.
Original Press Release
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