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TORONTO, GLIL YAM, Israel and KELOWNA, BC – IM Cannabis Corp. (CSE: NASDAQ:) (NASDAQ: IMCC), a medical cannabis company with operations in Israel and Germany, has entered into a trademark licensing agreement with Avant Brands Inc. (TSX: AVNT) (OTCQX: AVTBF) (FRA: 1BU0), a producer of cannabis products. The agreement grants IMC’s German subsidiary, Adjupharm GmbH, exclusive rights to launch Avant’s BLK MKT™ brand in Germany’s medical cannabis market.
The Licensing Agreement, which was signed on April 4, 2024, will allow Adjupharm to use the BLK MKT™ brand on medical cannabis products cultivated by Avant and exported to Germany. This collaboration aims to strengthen the companies’ presence in Germany following the recent legalization of medical cannabis by the government on April 1st.
IMC and Avant have a history of partnership, with Avant’s premium products being marketed and distributed by IMC’s established sales and distribution network in Israel. The companies anticipate that this new agreement will bolster their ability to meet the German market’s demand for high-quality medical cannabis.
Oren Shuster, CEO of IMC, stated their partnership with Avant aims to improve their supply chain and provide ultra-premium products to the German market. Richard Balla, CEO of IMC Germany, expressed confidence in the partnership’s ability to build on their momentum in the German market.
Norton Singhavon, CEO of Avant Brands, and David Lynn, COO of Avant Brands, both conveyed their enthusiasm for the partnership and the launch of the BLK MKT brand in Germany.
Avant’s cultivation facilities are certified with ICANN-GAP and GACP, positioning them to distribute premium cannabis internationally. IMC Germany is currently the 6th largest distributor of medical cannabis flowers in Germany and leads in sales per SKU, having seen a growth of over 180% in 2023, according to Insight Health data from December 2023.
IM Cannabis Corp. focuses on providing premium cannabis to medical patients in Israel and Germany and has recently exited its operations in Canada to concentrate on these markets. The company operates an ecosystem that includes retail pharmacies, online platforms, distribution centers, and logistical hubs to ensure quality control and safe delivery of its products.
This article is based on a press release statement.
InvestingPro Insights
In light of IM Cannabis Corp’s recent trademark licensing agreement with Avant Brands Inc., which is set to enhance their presence in the German medical cannabis market, an analysis of the company’s financial health and stock performance is crucial for investors. According to InvestingPro insights, IMC operates with a significant debt burden and is quickly burning through cash, which are important factors to consider when evaluating the company’s long-term sustainability.
The real-time data from InvestingPro shows that IMC’s market capitalization stands at a modest 12.88M USD, reflective of its status as a smaller player in the industry. The company’s Price/Earnings (P/E) ratio is currently negative at -1.93 for the last twelve months as of Q4 2023, indicating that the company is not profitable at this time. Additionally, the revenue for the same period was 36.83M USD, with a gross profit margin of 20.17%.
Despite these challenges, IMC has experienced a significant return over the last week, with a 1 Week Price Total Return of 83.81%. This surge is part of a broader trend, as the company has also seen a strong return over the last month and three months, with figures of 210.25% and 175.51%, respectively. These metrics suggest that while the company faces financial headwinds, its stock performance has been robust in the short term, potentially offering opportunities for traders who can navigate high price volatility.
For investors seeking a deeper dive into IMC’s financials and stock performance, InvestingPro offers additional detailed InvestingPro Tips, with 12 more tips available to help make informed decisions. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore the full spectrum of insights at: https://www.investing.com/pro/IMCC
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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