IM Cannabis Corp.

Good morning and welcome to I Am Cannabis' first quarter 2025 earnings conference call. Today's conference call is being recorded. At this time, I would like to turn the conference over to Anna Taranko, Director of Investor and Public Relations. Anna?

Good morning and thank you, operator. Joining me for today's call are IAM Cannabis Chief Executive Officer Oren Schuster and Chief Financial Officer Uri Bornberg. The earnings and press release that accompanies this call is available on the investor relations section of our website at investors.iamcannabis.com. Today's call will include estimates and other forward-looking information and statements, including statements concerning future results of operations, economic conditions, and anticipated courses of action, and are based on assumptions, expectations, estimates, and projections as the date hereof. This information may involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such statements. Factors that could cause or contribute to such differences are described in detail in the company's most recent filings available on cedarplus at www.cedarplus.ca and edgar at www.sec.gov. Furthermore, certain non-IFRS measures will be referred to during this call. The term non-IFRS adjusted EBITDA loss or non-IFRS adjusted EBITDA will hereafter be referred to as adjusted EBITDA loss or adjusted EBITDA as applicable. Any estimates or forward-looking information or statements provided are accurate only as of the date of this call, and the company undertakes no obligation to publicly update any forward-looking information or statements or supply new information regarding the circumstances after the date of this call. Please also note that all references on this call reflect currency and Canadian dollars unless otherwise stated. With that, it's my pleasure to turn the call over to Oren Schuster, CEO of IAM Cannabis. Oren, please go ahead.

Thank you, Amon. Good morning, everyone, and thank you for joining us today. While presenting the 2024 full year results in March, I focused on the progress we made internally, both strategically and operationally, the efficiencies and integration to build a solid RightSouth foundation to deliver on in 2025. In Q1 2025, we can see in the group's financial results that we have hit our target. In Q1, IMC reached net profit with an 87% improvement in our gross margin versus Q1 2024. Our focus continues to be on execution, shifting our resources to where we see the biggest ROI and leaning into our integrated structure. In Q1, with our integrated supply chain, we launched a total of 12 new strains in Germany, driving about 3 million euro, or 39% of our cannabis flower sales in Germany. To put this into perspective, in the second half of 2024, we imported a total of 11 new strains to Germany, for an upside in sales of about 14% in Germany. In Q1 of 2025 alone, we have already exceeded the last six months of 2024. Needless to say, I'm very proud of the work the entire team, both in Israel and in Germany, put in to deliver these results. Moving on to Israel, we see that the shifting focus and resources towards the German market and supply delays impacted our Israeli business. While the Israeli revenue declined by 66% versus Q1 2024, our German business grew 569% versus Q1 2024, offsetting the revenue decline in Israel. In addition, we are seeing that the cost-cutting measures produced by shifting our production facility in Israel in 2024 are flowing through to the financial results, leading to the increase in gross margin of 87% and an increase in gross profit of 94%. To sum up the first quarter of 2025, I'm delighted to see how the efficiencies and integration of the past two years is starting to be visible in our financial results. Our goal was for the group to be positive, which we achieved this quarter. Our target now is to continue to execute our strategy. I will now hand the call over to Uri, who will review our first quarter 2025 financial results. Uri?