• Implemented streamlining and restructuring plan in Canada, with expected cash cost savings of approximately CA$4 million per year, including the sale of SublimeCulture Inc.

• Completed the closure of the Sde Avraham cultivation farm that Focus Medical Herbs Ltd. owned and operated in Israel, with expected cash cost savings of CA$2.5 million per year, and further centralized operations of recently acquired assets in the country.

Oren Shuster, CEO of IMC, stated, "Our long-term strategy relies on geographic diversification and preparation to target, upon legalization, new adult-use recreational cannabis markets in Germany followed by the rest of Europe. We are preparing to leverage our global cultivation, brand, and commercial expertise to profitably capture substantial market share across Europe. Our strength is in properly positioning our brands in different markets and the introduction of new SKUs to consistently exceed consumer and patient expectations."

"Like in Israel, we have embarked on a thorough restructuring of our operations in Canada as part of our global integration efforts and to reduce costs. To that end, we have finalized the sale of Sublime, which together with our streamlining initiatives in Israel, is expected to yield CA$6.5 million in annual cash savings. We expect the majority of savings to begin to materialize in the third quarter, with full realization in the fourth quarter of this year," concluded Shuster.