#Israel #Convertible Notes #medical cannabis #IM Cannabis #Glil Yam

IM Cannabis Secures $1.2 Million in Innovative Convertible Note Financing

On November 4, 2026, IM Cannabis Corp. (Nasdaq: IMCC), a leading medical cannabis enterprise based in Israel, announced a significant update regarding its recent financing efforts. The company successfully closed a private placement, raising US$1,200,000 through convertible note financing from an existing institutional investor. This strategic move is poised to strengthen IM Cannabis's operational capabilities and broaden its market reach.

Details of the Financing Agreement

The financing was structured under the November Note Purchase Agreement, which stipulates that IM Cannabis issued a convertible promissory note valued at US$1,200,000 to the investor. Notably, the agreement includes an original issuance discount of 15%. The interest rate for this note starts at 4% per annum but escalates to 14% in the event of a default, clearly defined within the agreement.

The investor holds the flexibility to convert the outstanding balance of the note into common shares of IM Cannabis. This conversion option is key for both parties, as it allows for potential ownership stake shifts depending on the performance of the company. The maturity period is set at 28 months, with repayments commencing in 10 equal installments after the 18th month.

Furthermore, starting from January 1, 2027, IM Cannabis has the prerogative to request additional convertible notes from the investor, each potentially amounting to another USD 1,200,000 per quarter. This could greatly enhance the company's financial agility and enable ongoing expansions.

Conversion Price and Warrant Issuance

A noteworthy aspect of this financing is the conversion price established within the note. It is set at the lower of a fixed price of USD 0.610 per common share or 85% of the average trading price over the previous 20 days, capped at a minimum price of USD 0.1449 per share. This ensures the investor has a safety net regarding the value of their potential shares. Meanwhile, along with the convertible notes, warrants to acquire approximately 3,936,330 common shares were also issued, with an exercise price mirroring that of the convertible notes. These warrants become immediately effective upon issuance but come with certain anti-dilution protections, which could safeguard the investor's stake against future share issuances.

Utilization of Proceeds

IM Cannabis intends to channel the net proceeds from this financing into various general corporate purposes. This could include enhancing operational capabilities, funding further research and innovation in their medical cannabis offerings, and possibly expanding into new markets. By securing this funding, IMCC is positioning itself for sustained growth against a backdrop of evolving industry dynamics and consumer demand patterns.

Regulatory Considerations

The financing is also tactically aligned with IM Cannabis’s compliance strategy. The company will file a resale registration statement with the U.S. Securities and Exchange Commission (SEC) to ensure the proper regulatory adherence for the shares issued. This proactive approach reflects a commitment to transparency and the strategic navigation of the public equity landscape.

About IM Cannabis Corp.

IM Cannabis Corp. stands out as an international leader within the medical cannabis sector, serving patients primarily within Israel. The company operates through various subsidiaries, which manage the import and distribution of high-quality cannabis products. In addition to its pharmaceutical syndicate, IM Cannabis maintains retail pharmacies and online platforms that facilitate safe access to its products, ensuring stringent quality control throughout the supply chain.

As IM Cannabis moves forward with this financing, it exemplifies a robust strategy to leverage investment opportunities in a highly competitive market, with a clear vision for future growth and enhanced service delivery to its customer base.