Page
|
|
F-4 - F-5
|
|
F-6 - F-7
|
|
F-8
|
|
F-9 - F-10
|
|
F-11 - F-28
|
June 30,
2023
|
December 31,
2022
|
||||||||||
Note
|
(Unaudited)
|
||||||||||
ASSETS
|
|||||||||||
CURRENT ASSETS:
|
|||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
|||||||
Trade receivables
|
|
|
|||||||||
Advances to suppliers
|
|
|
|||||||||
Other accounts receivable
|
|
|
|||||||||
Inventories
|
|
|
|||||||||
|
|
||||||||||
NON-CURRENT ASSETS:
|
|||||||||||
Property, plant and equipment, net
|
|
|
|||||||||
Investments in affiliates
|
|
|
|||||||||
Right-of-use assets, net
|
|
|
|||||||||
Deferred tax assets, net
|
|
|
|||||||||
Intangible assets, net
|
|
|
|||||||||
Goodwill
|
|
|
|||||||||
|
|
||||||||||
Total assets
|
$
|
|
$
|
|
June 30,
2023
|
December 31,
2022
|
||||||||||
Note
|
(Unaudited)
|
||||||||||
LIABILITIES AND EQUITY
|
|||||||||||
CURRENT LIABILITIES:
|
|||||||||||
Trade payables
|
$
|
|
$
|
|
|||||||
Bank loans and credit facilities
|
|
|
|||||||||
Other accounts payable and accrued expenses
|
|
|
|||||||||
Accrued purchase consideration liabilities
|
|
|
|||||||||
Current maturities of operating lease liabilities
|
|
|
|||||||||
|
|
||||||||||
NON-CURRENT LIABILITIES:
|
|||||||||||
Warrants measured at fair value
|
3
|
|
|
||||||||
Operating lease liabilities
|
|
|
|||||||||
Long-term loans
|
|
|
|||||||||
Employee benefit liabilities, net
|
|
|
|||||||||
Deferred tax liability, net
|
|
|
|||||||||
|
|
||||||||||
Total liabilities
|
|
|
|||||||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
|
4
|
||||||||||
Share capital and premium
|
|
|
|||||||||
Translation reserve
|
|
|
|||||||||
Reserve from share-based payment transactions
|
|
|
|||||||||
Accumulated deficit
|
(
|
)
|
(
|
)
|
|||||||
Total equity attributable to equity holders of the Company
|
|
|
|||||||||
Non-controlling interests
|
|
|
|||||||||
Total equity
|
|
|
|||||||||
Total liabilities and equity
|
$
|
|
$
|
|
Six months ended
June 30,
|
Three months ended
June 30,
|
|||||||||||||||
2023
|
2022(*)
|
2023
|
2022(*)
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cost of revenues
|
|
|
|
|
||||||||||||
Gross profit before fair value adjustments
|
|
|
|
|
||||||||||||
Fair value adjustments:
|
||||||||||||||||
Unrealized change in fair value of biological assets
|
|
(
|
)
|
|
|
|||||||||||
Realized fair value adjustments on inventory sold in the period
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total fair value adjustments
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Gross profit
|
|
|
|
|
||||||||||||
General and administrative expenses
|
|
|
|
|
||||||||||||
Selling and marketing expenses
|
|
|
|
|
||||||||||||
Restructuring expenses
|
|
|
|
|
||||||||||||
Share-based compensation
|
|
|
(
|
)
|
|
|||||||||||
Total operating expenses
|
|
|
|
|
||||||||||||
Operating loss
|
|
|
|
|
||||||||||||
Finance income
|
|
|
|
|
||||||||||||
Finance expense
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Finance income (expenses), net
|
|
|
(
|
)
|
|
|||||||||||
Loss from disposal of investment
|
|
|
|
|
||||||||||||
Loss before income taxes
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Income tax benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net loss from continuing operations
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net loss from discontinued operations
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Net loss
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Other comprehensive income (loss) that will not be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||
Remeasurement gain on defined benefit plan
|
|
|
|
|
||||||||||||
Exchange differences on translation to presentation currency
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total other comprehensive income that will not be reclassified to profit or loss in subsequent periods
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Other comprehensive income that will be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||
Adjustments arising from translating financial statements of foreign operation
|
|
|
|
|
||||||||||||
Total other comprehensive income that will be reclassified to profit or loss in subsequent periods:
|
|
|
|
|
||||||||||||
Total other comprehensive income (loss)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Total comprehensive loss
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Six months ended
June 30,
|
Three months ended
June 30,
|
||||||||||||||||||
2023
|
2022(*)
|
2023
|
2022(*)
|
||||||||||||||||
Note
|
Unaudited
|
||||||||||||||||||
Net loss attributable to:
|
|||||||||||||||||||
Equity holders of the Company
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
Non-controlling interests
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||
Total comprehensive loss attributable to:
|
|||||||||||||||||||
Equity holders of the Company
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
Non-controlling interests
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||
Net income (loss) per share attributable to equity holders of the Company:
|
6
|
||||||||||||||||||
Basic loss per share (in CAD)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
Diluted loss per share (in CAD)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
Earnings (loss) per share attributable to equity holders of the Company from continuing operations:
|
|||||||||||||||||||
Basic loss per share (in CAD)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
Diluted loss per share (in CAD)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||
Loss per share attributable to equity holders of the Company from discontinued operations:
|
|||||||||||||||||||
Basic and diluted loss per share (in CAD)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
Canadian Dollars in thousands
Share
Capital and premium
|
Reserve from share-based payment transactions
|
Translation reserve
|
Accumulated deficit
|
Total
|
Non-controlling interests
|
Total
equity
|
||||||||||||||||||||||
Balance as of January 1, 2023
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net loss
|
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||||||||
Total other comprehensive loss
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||||||||
Total comprehensive loss
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||
Issuance of common shares
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Share-based compensation
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Expired options
|
|
(
|
)
|
|
|
|
|
|
||||||||||||||||||||
Balance as of June 30, 2023
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
Share capital and premium
|
Treasury stock
|
Reserve for share-based payment transactions
|
Translation reserve
|
Accumulate deficit
|
Total
|
Non-controlling interests
|
Total
equity
|
|||||||||||||||||||||||||
Balance as of January 1, 2022
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Net loss
|
|
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Other comprehensive income (loss)
|
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Total comprehensive loss
|
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Issuance of common shares
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Exercise of options
|
|
|
(
|
)
|
|
|
|
|
|
|||||||||||||||||||||||
Share based payment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Expired Options
|
|
|
(
|
)
|
|
|
|
|
|
|||||||||||||||||||||||
Balance as of June 30, 2022
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
Six months ended
June 30,
|
||||||||
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss for the period
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Adjustments for non-cash items:
|
||||||||
Unrealized gain on changes in fair value of biological assets
|
|
(
|
)
|
|||||
Fair value adjustment on sale of inventory
|
|
|
||||||
Fair value adjustment of warrants measured at fair value and derivative assets
|
(
|
)
|
(
|
)
|
||||
Depreciation of property, plant and equipment
|
|
|
||||||
Amortization of intangible assets
|
|
|
||||||
Depreciation of right-of-use assets
|
|
|
||||||
Finance expenses, net
|
|
|
||||||
Deferred tax benefit, net
|
(
|
)
|
(
|
)
|
||||
Share-based payment
|
|
|
||||||
Revaluation of other receivable
|
|
|
||||||
Loss from disposal of investments
|
|
|
||||||
Restructuring expenses
|
|
|
||||||
|
|
|||||||
Changes in working capital:
|
||||||||
Increase in trade receivables, net
|
(
|
)
|
(
|
)
|
||||
Decrease (increase) in other accounts receivable
|
(
|
)
|
|
|||||
Decrease in biological assets, net of fair value adjustments
|
|
|
||||||
Decrease (increase) in inventories, net of fair value adjustments
|
|
(
|
)
|
|||||
Increase (decrease) in trade payables
|
(
|
) |
|
|
||||
Decrease in employee benefit liabilities, net
|
(
|
)
|
(
|
)
|
||||
Increase (decrease) in other accounts payable and accrued expenses
|
(
|
)
|
(
|
)
|
||||
(
|
)
|
(
|
)
|
|||||
Taxes paid
|
(
|
)
|
(
|
)
|
||||
Net cash used in operating activities
|
(
|
)
|
(
|
)
|
Six months ended
June 30,
|
||||||||
2023
|
2022
|
|||||||
Unaudited
|
||||||||
Cash flows from investing activities:
|
||||||||
Purchase of property, plant and equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of property, plant and equipment
|
|
|
||||||
Proceeds from loans receivable
|
|
|
||||||
Investments in associate
|
|
(
|
)
|
|||||
Net cash used in investing activities
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Cash flow from financing activities:
|
||||||||
Proceeds from issuance of share capital, net of issuance costs
|
$
|
|
$
|
|
||||
Proceeds from exercise of options
|
|
|
||||||
Proceeds from issuance of Warrants
|
|
|
||||||
Repayment of lease liability
|
(
|
)
|
(
|
)
|
||||
Payment of lease liability interest
|
(
|
)
|
(
|
)
|
||||
(Repayment) proceeds from bank loan and credit facilities, net
|
(
|
)
|
|
|||||
Interest paid
|
(
|
)
|
(
|
)
|
||||
Proceeds from factoring of checks receivables
|
|
|
||||||
Net cash provided by financing activities
|
|
|
||||||
Effect of foreign exchange on cash and cash equivalents
|
|
(
|
)
|
|||||
Increase (decrease) in cash and cash equivalents
|
(
|
)
|
(
|
)
|
||||
Cash and cash equivalents at beginning of the period
|
|
|
||||||
Cash and cash equivalents at end of the period
|
$
|
|
$
|
|
||||
Supplemental disclosure of non-cash activities:
|
||||||||