Cantourage Group
Cantourage has continued its run of positive financial results, reporting record profits for the third quarter and nearly doubling revenues year-on-year.
In preliminary results from October, Cantourage said that it was on track to surpass revenues of €40m in 2024, having generated revenues of €13.2m between July 01 and September 30.
It also suggested that it had already surpassed 2023’s total revenues of €24.9m and was looking at a positive EBITDA of around €1m for the third quarter.
An update this week has confirmed these preliminary projections, reporting €30.2m in revenues between January 01 and September 30, up from €17m in the same period a year earlier.
Furthermore, the company exceeded its projection for profitability, reporting an EBITDA of €1.4m for the quarter, up significantly from a loss of €700k a year earlier.
As such, financial analysts at NuWays and Montega have confirmed a buy recommendation for Cantourage stock, setting price targets at €10.00 and €11.00, respectively.
This performance builds on Cantourage’s steady growth trajectory in 2024. Quarterly sales increased from €6.1m in Q1 to €13.2m by Q3.
The company’s recent gains are driven by increased processing capacity in Germany and Portugal, alongside the launch of 16 new cannabis flower strains over the period.
To further strengthen its market position, Cantourage has entered new partnerships with six cultivation partners across four continents.
Later this month, the company plans to launch another line called ‘Medicus’, which will include five competitively priced cannabis flower products targeted to the growing segment of patients seeking value-oriented options.
CEO Philip Schetter said: “One thing is certain for us: no matter how legalization develops for the recreational market: Medical cannabis is here to stay – not only in Germany, but also in more and more European countries that are currently opening up to the topic.
“Thanks to our position as market leader in Germany and our flexible business model, we will continue to record strong, profitable growth in the years ahead.”
Akanda Corp
Akanda Corp has announced plans to push through another reverse stock split, its second this year and third overall.
At the end of October, Business of Cannabis reported that despite reporting a rise in sales through its now sole revenue generator, UK medical cannabis business Canmart, its stock price had continued to decline.
The NASDAQ-listed company’s share price at the time of writing is just under $0.7, below the minimum threshold required by the stock exchange.
In its latest effort to mitigate a potential delisting from NASDAQ, this week Akanda announced plans to execute a 1-for-2 reverse stock split of its common shares, effective at market open on November 14, 2024.
As a result, every two common shares will be combined into one, reducing Akanda’s outstanding common shares from approximately 4.1 million to 2.0 million.
IM Cannabis
IM Cannabis Corp. this week announced the completion of a private placement offering and a debt settlement with the company’s CEO, Oren Shuster.
It came just weeks after the Israeli company was targeted by Iranian hackers, who claim to have gained access to 64 gigabytes of IMC’s sensitive business information, including sales data, procurement, HR, customer info, bills of lading, and contracts.
In the offering, the company issued 436,547 units at a price of C$2.88 per unit, with each unit consisting of one common share and one warrant. The warrants are exercisable at C$4.32 per share for 24 months. The proceeds will be used to repay a loan to a subsidiary company.
In the debt settlement, the company issued 110,576 common shares and 152,701 pre-funded warrants to Mr Shuster to settle US$560,000 (C$758,240) in debt.
The participation of Mr Shuster, as well as directors Shmulik Arbel and Rafael Gabay, in the offering constitutes a related party transaction. However, the company relied on exemptions from the formal valuation and minority shareholder approval requirements due to its serious financial difficulty.
The transactions resulted in Mr. Shuster and Mr. Gabay increasing their ownership stakes in the company to 19.99% and 12.63%, respectively.
Earlier this month, the company saw its stock price tank following news of the hack, but this has now recovered to well above previous levels.
The hackers claim that IM Cannabis is involved in the ‘distribution of obscene and dangerous drugs in Europe and America’ using fake shipping documents. However, IM Cannabis denies these allegations, stating that only limited business data and employee information was accessed, with no patient data compromised.
The attack also allegedly impacted other cannabis companies that had business relationships with IM Cannabis, including Pharmazone. Websites for Harmoni and Kanashore were also taken down in the attack.
IM Cannabis says it immediately launched a comprehensive investigation with cybersecurity experts to analyse the scope of the attack. The company claims its network, systems, and patient data were not damaged or leaked and that this was not a material incident.
The Iranian hacking group Handala claims to have maintained backdoor access to the systems of over 23 large Israeli companies through the initial breach of cloud service provider Pear. However, Pear and IM Cannabis dispute the extent of the damage caused by the attack.
