IM Cannabis Sees Prelim. Q4 Revenue At Least $20M, Up 37% From Q3

Preliminary Q4 and Full Year 2021 Financial & Operational Highlights:

• Preliminary revenues for Q4 2021 were at least $20 million, representing an approximate increase of at least 37% from Q3 2021 and at least 308% compared to the same prior-year period.
• Preliminary gross margin before fair value adjustment was at least 18% in Q4 2021, temporarily impacted by modest investments in the German market and impact of COVID-19 restrictions in Canada that disrupted labour and supply chains.
• Preliminary revenues for fiscal year 2021 were at least $54 million, representing an approximate increase of at least 240% from fiscal year 2020. Preliminary gross margin before fair value adjustment was at least 22% in fiscal year 2021.
• Focus Medical Herbs Ltd. ("Focus Medical") successfully imported approximately 399 kilograms of premium, indoor-grown, Canadian dried cannabis following approval from the Ministry of Agriculture to import to the Israeli market in Q4 2021. Subsequent to Q4 2021, the WAGNERS brand was launched in Israel.
• In Q4 2021, the Company announced the anticipated 2022 launch of WAGNERS brand in the rapidly evolving German medical cannabis market.
• Signed a definitive agreement in Q4 2021 to acquire Oranim, Jerusalem's leading medical cannabis pharmacy, positioning IMC as one of the largest retailers of medical cannabis in Israel. The acquisition of Oranim is conditional upon receipt of all requisite approvals, including regulatory approval from the Israeli Medical Cannabis Agency. The closing of the Oranim acquisition is expected by the end of Q2 2022.