International operator IM Cannabis Corp. (CSE: IMCC) (Nasdaq: IMCC) has closed three acquisitions in Israel.
On Tuesday, the company said that after receiving approvals from regulators including the Israeli Medical Cannabis Unit, it completed the acquisitions via its subsidiaries IMC Holdings Ltd., I.M.C. Pharma Ltd. and IMC Holdings.
IM bought Revoly Trading and Marketing Ltd., or Vironna, one of the largest pharmacy firms in Israel. Vironna was acquired via IMC Holdings for $3.33 million — $1.96 million in cash and $1.37 million in IM common shares. For the deal, IM issued 485,000 common shares at approximately $2.80 per share.
The company also bought Pharm Yarok for $4.6 million, which includes R.A. Yarok Pharm Ltd., a cannabis pharmacy located in central Israel, as well as Rosen High Way Ltd. a distribution centre with licensing that provides storage, distribution services and logistics solutions for Israeli cannabis businesses.
Relatedly, around 524,000 common shares were issued at $2.16 per share.
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Lastly, IMC Holdings received approval to buy an IMC-GDP licence for cannabis distribution from Panaxia Pharmaceutical Industries Israel Ltd. and Panaxia Logistics Ltd., part of the Panaxia Labs Israel, Ltd. group of companies.
The licence was assigned to IMC Pharma under $7.2-million agreement — $2.9 million in two cash instalments, and $4.3 million in IM common shares.
That transaction includes the option to by a Panaxia pharmacy along with the licences, which is expected to happen in the third quarter this year.
CEO Oren Shuster says the acquisitions are a key to his firm’s expansion in Israel.
“Our business model enables IM Cannabis to oversee the entire supply chain and ensure that the procurement and movement of quality supplies across our Israeli, German and Canadian operations are done efficiently while providing our customers with premium quality cannabis,” he said in a statement.
“The positive reputation we have built in the industry is reflected in our increasing customer satisfaction and consumption levels.”
IM operates in Israel through its commercial relationship with Focus Medical Herbs Ltd., which cultivates, imports and distributes cannabis to patients.
It also operates pharmacies, online platforms, distribution centres and logistical hubs through IMC Holdings. In Germany, IM Cannabis operates through Adjupharm GmbH, where it distributes to pharmacies.
In Canada, IM operates through Trichome Financial Corp. and its subsidiaries TJAC and MYM, where it grows and processes cannabis for the adult-use market at its Ontario, Nova Scotia and Quebec facilities under the Wagners and Highland Grow brands.
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