International medical cannabis company IM Cannabis Corp. is reorganizing its management and operations, including cutting up to 25% of its workforce.
The move comes months after the Glil Yam, Israel-based business exited the hyper-competitive Canadian cannabis market in order to focus on opportunities in Israel and Europe – in particular, Germany.
IM Cannabis said it expects to realize approximately 3.5 million Canadian dollars ($2 million) in cost savings annually after the workforce reduction is completed by the middle of this year.
“The restructuring initiatives … (reflect) 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,” CEO Oren Shuster said in a statement.
IM Cannabis is among a number of cannabis companies announcing major reorganizations in recent months.
Canopy Growth Corp., based in Ontario, began a “transformation” that involved 800 job cuts and the planned closure of its flagship Canadian cultivation facility.
As part of IM’s restructuring plan, Chief Financial Officer Shai Shemesh will step aside for Itay Vago, who previously served as finance director of IMC Holdings.
Rinat Efrima, CEO of IMC Holdings, will also be stepping down and handing over her responsibilities to Eyal Fisher.
Late last year, IMC’s wholly owned Canadian subsidiary, Trichome Financial Corp. (including subsidiaries Trichome JWC Acquisition Corp. and MYM Nutraceuticals), obtained creditor protection.
This week, IM said the sale and investment solicitation process approved by the Ontario Superior Court of Justice did not result in any bids for the going-concern business of Trichome Financial Corp. and its subsidiaries.
IM also said L5 Capital will not complete the proposed transaction contemplated by the stalking-horse share-purchase agreement between Trichome and L5.
“As such, Trichome and the monitor appointed under the Companies’ Creditors Arrangement Act will proceed with the wind-down of the operations of Trichome and the liquidation of its remaining assets,” according to IM’s news release.