Multinational cannabis company IM Cannabis Corp. (NASDAQ: IMCC) (CSE: IMCC) is laying off around 20-25 per cent of its workforce to focus on core activities and drive a sustainable profit.
The company announced the reorganization of management and workforce reduction on Wednesday and said all actions are expected to be complete by mid-2023. Mugglehead has reached out to the company for further information.
IM Cannabis also announced updates to its global leadership team will undergo restructuring, with key positions being filled by skilled internal successors who will receive support during a three-month transition period. This will ensure continuity through a closely monitored handover process.
The current CFO Shai Shemesh, will step down and be replaced by Itay Vago, who has over 15 years of experience in executive finance management in multinational, publicly traded companies in high-tech and pharmaceutical industries. Vago previously served as the finance director of IMC. He will undergo a structured transition period to ensure a smooth handover of responsibilities.
Similarly, current CEO Rinat Efrima will be replaced by Eyal Fisher, an experienced senior manager in retail and medical cannabis industries with expertise in sales, operations, and regulation. Fisher will also undergo a structured transition period to ensure continuity.
Yael Harrosh, currently serving as the Chief Legal and Operations Officer, will lead the company’s restructuring plan. She will step down from her current responsibilities only after the appointment of a new General Counsel who will undergo a structured transition period.
“The restructuring initiatives announced today to follow our departure from the Canadian cannabis market to focus our resources on growth opportunities in Israel, Germany and Europe,” IM Cannabis CEO Oren Shuster said in a statement.
“It further reflects our determination to continue with our strategic plan by maximizing efficiencies to create a leaner and more flexible organization to better suit the current market environment and our short- to mid-term objectives.”
Shuster added the company expects approximately $3.5 million of annualized cost savings from mid-2023 while maintaining its current revenue.
IMC is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany. It recently exited operations in Canada to focus on achieving sustainable and profitable growth in Israel and Germany, which are two of the largest medical cannabis markets.
The company leverages a data-driven approach and a globally sourced product supply chain to ensure compliance with the strictest regulatory environments. In Israel, IMC operates through its commercial relationship with Focus Medical and operates medical cannabis retail pharmacies, online platforms, distribution centers, and logistical hubs. In Germany, IMC operates through Adjupharm GmbH, distributing cannabis to pharmacies for medical cannabis patients.
IM Cannabis stock went up by 11 per cent on Wednesday to $1.11 on the Canadian Securities Exchange.