IM Cannabis (IMCC, Financial) has initiated steps to voluntarily remove its common shares from the Canadian Securities Exchange (CSE). This move, however, will not impact its presence on Nasdaq, where trading will continue under the symbol "IMCC". The decision stems from the desire to avoid unnecessary expenditures and approvals linked to potential transactions, which could become cumbersome if the company remains dual-listed.
IM Cannabis considers the trading activity on the CSE insufficient to justify the associated costs and administrative tasks. By focusing solely on Nasdaq, the company aims to establish a centralized marketplace that could enhance the liquidity and overall shareholder value in the long term. Shareholders will maintain the ability to trade IMCC shares on Nasdaq without interruption.
The company appreciates the opportunities provided by the CSE for its initial public access. The delisting is anticipated to take effect following approval, with the last trading day on the CSE expected to be June 2, 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for IM Cannabis Corp (IMCC, Financial) is $6.00 with a high estimate of $6.00 and a low estimate of $6.00. The average target implies an upside of 220.81% from the current price of $1.87. More detailed estimate data can be found on the IM Cannabis Corp (IMCC) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, IM Cannabis Corp's (IMCC, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for IM Cannabis Corp (IMCC, Financial) in one year is $2.65, suggesting a upside of 41.71% from the current price of $1.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the IM Cannabis Corp (IMCC) Summary page.
IMCC Key Business Developments
Release Date: May 15, 2025
- Revenue: Q1 2025 revenue was 12.5 million CAD, up 4% from 12.1 million CAD in Q1 2024.
- Gross Margin: Improved by 87% compared to Q1 2024.
- Net Profit: Achieved a net profit of 0.2 million CAD in Q1 2025, compared to a loss of 6 million CAD in Q1 2024.
- Adjusted EBITDA: Profit of 0.6 million CAD in Q1 2025, compared to a loss of 2.2 million CAD in Q1 2024.
- German Revenue Growth: Increased by 569% versus Q1 2024.
- Israeli Revenue Decline: Decreased by 56% versus Q1 2024.
- Operating Expenses: Decreased by 56% to 3.3 million CAD in Q1 2025 from 7.4 million CAD in Q1 2024.
- Gross Profit: Increased by 94% to 3.4 million CAD in Q1 2025 from 1.8 million CAD in Q1 2024.
- Cash Balance: 1.4 million CAD as of March 31, 2025, up from 0.9 million CAD on December 31, 2024.
- Total Assets: 44,934 CAD as of March 31, 2025, an increase of 15% from December 31, 2024.
- Total Liabilities: 41,761 CAD as of March 31, 2025, an increase of 16% from December 31, 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- IM Cannabis Corp (IMCC, Financial) achieved a net profit in Q1 2025, marking a significant turnaround from previous losses.
- The company reported an 87% improvement in gross margin compared to Q1 2024.
- Revenue from the German market increased by 569% versus Q1 2024, highlighting successful market expansion.
- Operating expenses decreased by approximately 56% compared to Q1 2024, indicating improved cost management.
- Adjusted EBITDA turned positive, with a profit of 0.6 million CAD compared to a loss of 2.2 million CAD in Q1 2024.
Negative Points
- Revenue from the Israeli market declined by 56% compared to Q1 2024, impacting overall revenue distribution.
- The decrease in Israeli revenue was partly due to the cancellation of the organin bill, resulting in a revenue drop of approximately 3.5 million CAD.
- Total liabilities increased by 16% as of March 31, 2025, compared to December 31, 2024.
- The company faces ongoing challenges in balancing its operations between different markets, as seen in the shifting focus from Israel to Germany.
- Despite profitability, the company still needs to secure additional sources of capital and financing to support future operations.
