Mr. Oren Shuster reports
IMC CONTINUES GERMAN MARKET EXPANSION WITH PURCHASE COMMITMENTS FROM THREE ADDITIONAL DISTRIBUTION PARTNERS
IM Cannabis Corp.'s German subsidiary, Adjupharm GmbH, has received three definitive purchase commitments of medical cannabis over the next 12 months from the axicorp Group, canymed GmbH and Materia Deutschland GmbH. The company has now secured seven definitive purchase commitments with distributors in Germany for a total of 1,525 kilograms to be delivered in the next 12 months.
Oren Shuster, chief executive officer of IM Cannabis, commented: "The team at IMC continues to deliver exceptional execution in our core markets in 2020, first in Israel and now in Germany. We are planning for rapid growth in the German medical cannabis market and to be a consistent supplier to patients and physicians. We recognized early on that penetration across Germany would require a network of strong distribution partners complementing our direct sales efforts and we are very pleased with how quickly we have been able to secure these quality partnerships. Similar to our structure in Israel, we will continue to build our supply and distribution infrastructure as we seek to make IMC a leading brand in global medical cannabis."
Details of the sales agreements
Through its EU-GMP (European Union good manufacturing practices) certified subsidiary, Adjupharm, the company has entered into three sales agreements. The sales agreements entered into with axicorp and canymed are both for three-year terms and the sales agreement entered into with Materia is for a one-year term. All three sales agreements include binding purchase commitments.
Through Adjupharm, IMC now has a total of 1,525 kilograms of binding purchase commitments for the sale of medical cannabis in Germany under the IMC brand, 823 kilograms of which will be delivered in 2020. Medical cannabis sold under the sales agreements will be fulfilled primarily from the company's EU-GMP certified supply partner in Europe.
IM Cannabis has also previously announced that Focus Medical Herbs Ltd. has signed six binding sales agreements for the distribution of IMC-branded medical cannabis products in Israel. Total consolidated revenue from all binding sales agreements in Israel is expected to be $193.5-million with an expected gross margin of 50 per cent. A total of 33,075 kilograms of medical cannabis will be delivered under the sales agreements through to the end of 2023, of which 3,000 kilograms are expected to reach pharmacies in 2020.
About IM Cannabis Corp.
IM Cannabis is a multicountry operator in the medical cannabis sector, and a well-known Israeli brand of medical cannabis products. In Europe, IM Cannabis has established a medical cannabis operation first with its distribution subsidiary in Germany and augmented by strategic agreements with certified EU-GMP standard suppliers, making it one of the only medical cannabis companies with fully integrated operations in Europe.
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