Cannabis Stock News: MYM (CSE: MYM) Releases Q3 2021 Financial Results
Vancouver, British Columbia - April 30, 2021 (Newsfile Corp.) (Investorideas.com Newswire) MYM Nutraceuticals Inc., (CSE: MYM) (OTCQB: MYMMF) ("MYM" or the "Company") today announced its financial results for the three-month period ending February 28, 2021 ("Q3 2021"). The Company's Financial Statements and Management Discussion & Analysis ("MD&A") are available on sedar.com.
Key Highlights for Q3 2021
- Gross revenue of $4.4 million, an increase of 8% from the prior quarter
- Positive EBITDA of $212,628
- Expanded distribution to three new markets: Yukon, Nunavut, and Ontario
- Subsequent to Q3 2021, announced a definitive agreement to merge with IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) ("IMCC") (the "Transaction") with over 44% voting support for the Transaction, representing over 163 million shares
(1) In this press release, reference is made to EBITDA and working capital. These metrics and measures are not recognized measures under IFRS, do not have meanings prescribed under IFRS and as a result are unlikely to be comparable to similar measures presented by other companies. These measures are provided as information complementary to those IFRS measures by providing a further understanding of our operating results from the perspective of management. As such, these measures should not be considered in isolation or in lieu of review of our financial information reported under IFRS. Definitions and reconciliations for all terms above can be found in the Company's MD&A for the three months ended February 28, 2021, filed on SEDAR. The key financial highlights are not in accordance to IFRS, but are provided for the purpose of calculating EBITDA.
"Overall, despite tough market conditions attributable to COVID-19 and SKU rationalization across various provinces, MYM continued to grow its revenue and generate positive EBITDA in the quarter," said Michael Wiener, CEO of MYM. "Most importantly, on April 1, 2021, we announced a definitive agreement to merge with IMCC, a multi-country operator established in Israel, the EU and Canada. IMCC is a perfect complement to MYM, and as a stronger combined company we believe we are set to embark on the next chapter of growth and realization of value for our shareholders."
Michael Wiener continues, "We maintain our conviction that a merger with IMCC is an excellent outcome for all MYM shareholders after a successful turnaround of the Company in the last year. The Transaction provides MYM with a platform for international distribution into Israel (currently the largest importer of cannabis globally) and the EU (expected to become the largest cannabis market globally), an expanded premium product portfolio, a diversified cultivation footprint, and strengthened management team. The IMCC team has done a tremendous job of building the needed infrastructure to distribute cannabis products globally, and we feel MYM is the perfect fit to fill the void that exists when it comes to ultra-premium, craft cultivated cannabis flower. As part of a larger company with greater access to capital, including IMCC's NASDAQ listing, we believe the combined business will offer our shareholders the opportunity to participate in a world-class platform, enhance liquidity, and also position the combined business to be an acquirer in what we anticipate will be a consolidation phase for the cannabis industry. We are confident in the team we have at MYM, and we are excited to join what we feel is one of the strongest teams in the industry at IMCC. To date, we have received tremendous shareholder support for this Transaction."
- On March 31st, 2021, the Company entered into a definitive agreement to be acquired by IM Cannabis Corp. ("IMCC") (NASDAQ: IMCC) (CSE:IMCC) pursuant to a plan of arrangement to be completed under the Business Corporations Act (British Columbia);
- Under the terms of the Transaction, the shareholders of MYM will receive 0.022 common shares of IMCC for each common share of MYM;
- MYM's directors and officers, certain shareholders of MYM as well as Biome Grow Inc., which together currently hold approximately 44.4% of the shares entitled to vote at the shareholders' meeting being held to approve the Transaction, have entered into voting support agreements to vote their shares in favour of the Transaction;
- An information circular with additional details with respect to the Transaction is expected to be mailed to shareholders in mid-May 2021; and
- Subject to court, regulatory and shareholder approval, the Transaction is expected to close in the second half of 2021.
The most recent corporate presentation on the Transaction can be found here.
A copy of the Arrangement Agreement has been filed on IMCC and MYM's SEDAR profiles and is available for viewing at www.sedar.com.
About MYM Nutraceuticals Inc.
MYM is a Canadian cultivator, processor, and distributor of premium cannabis via its two wholly owned subsidiaries - SublimeCulture Inc., in Laval, QC and Highland Grow Inc., in Antigonish, NS. MYM shares trade in Canada, Germany and the United States under the following symbols: (CSE: MYM) (OTCQB: MYMMF) (FSE:0MY) (DEU:0MY) (MUN:0MY) (STU:0MY).
ON BEHALF OF THE MYM BOARD
Michael Wiener, CEO
MYM Nutraceuticals Inc.
Toll-free: (800) 232-0316
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Disclaimer for Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable securities laws about MYM's current expectations, estimates and projections about the future, based on certain assumptions made in light of experiences and perceptions of historical trends. Although MYM believes that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Investors should not place undue reliance on forward-looking information, which is inherently uncertain. Actual results may materially differ from the expectations represented in the forward-looking information in this press release.
Forward-looking information is sometimes, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking information in this press release includes statements about the timing of the meeting to approve the Transaction and the mailing of materials related to the Transaction, the benefits of the Transaction, including statements about the growth of the cannabis market in Israel, the EU and globally, anticipated international market access and distribution in Israel, the EU and globally, synergies, economies of scale and increased profit margins following the Transaction, future market share gains, future production capacity, increases in genetic offerings, supply chain improvements and operation risk reductions, the management team and management performance at the combined company, cost of and access to capital and liquidity for shareholders, balance sheet improvements, the future cannabis product portfolio, the future of the cannabis industry, the ability of the combined company to acquire other companies, the liquidity of the combined company and growth of the combined company.
Developing forward-looking information involves reliance on many assumptions and considerations of certain risks and uncertainties, some of which are specific to MYM, and others that apply to the industry generally. Those assumptions include, but are not limited to the ability to satisfy the requirements for issuance of all required permits, licenses and other approvals, the ability to manage growth and development effectively, the absence of material adverse changes in the Canadian and international cannabis industry or the global economy, trends in the Canadian and international cannabis industry and markets, the ability to establish, distribute and market the brands of MYM in the target markets, the ability to expand MYM cannabis product portfolio, the ability to maintain good business relationships with suppliers, contract manufacturers and other third parties on whom MYM does or will depend, the ability to comply with current and future regulatory standards, the ability to protect intellectual property rights, continued compliance with third-party license terms and the non-infringement of third-party intellectual property, the ability to manage and integrate acquisitions, including completing the Transaction, the ability to successfully integrate IMCC and MYM, the ability to retain and integrate key personnel of IMCC and MYM, and the combined company's financing requirements to support its continued operations.
Some of the risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements contained in this press release, include, but are not limited to, the risk factors included under the heading "Risk Factors" in the annual information form of MYM dated September 26, 2020 and under the heading "Risk Factors" in the MD&A for the three months ended February 28, 2021, both of which are available on sedar.com.
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