#Canada #Toronto #medical cannabis #Convertible Note #IM Cannabis

IM Cannabis Corp. Secures $225,000 Through Convertible Note Financing

In a significant development for the medical cannabis industry, IM Cannabis Corp. (Nasdaq: IMCC), a prominent player with operations in Israel and Germany, has successfully finalized a convertible note financing deal that raised a total of $225,000. The company announced this milestone on June 3, 2026, following a private placement agreement with a notable institutional investor.

Financing Details

The convertible notes, issued under a purchase agreement signed on the same day, come with a principal amount of $225,000 and feature an original issuance discount of 10%. The interest rate set for these notes is 8% per annum, which escalates to 14% in the event of a default. Unlike traditional financing, these notes will not be repaid in cash. Instead, obligations will be met through the issuance of common shares of the company, allowing IMC to preserve its cash flow while still meeting financial obligations.

The conversion price for investors is primarily determined by the lower of two options: either a fixed price of $0.288 per share or 90% of the lowest daily volume-weighted average price over the 20 trading days prior to conversion, ensuring flexibility for investors while protecting the company’s capital interests.

Warrants and Share Options

In conjunction with the note issuance, IM Cannabis Corp. has also provided warrants to purchase up to 781,250 common shares at an exercise price of C$0.40. These warrants became immediately exercisable on the issuance date, giving investors significant potential upside as they join the firm on its growth journey. They will remain valid for five years, expiring on June 3, 2031.

Strategic Use of Proceeds

The proceeds from this financing will be utilized for general corporate purposes, which reinforces IMC’s strategy of strengthening its capital base to facilitate future expansion and enhance operational capabilities. The company is actively looking into opportunities that leverage its existing frameworks and technology-driven sectors within the cannabis market.

Regulatory Compliance

The company has committed to reserving adequate common shares for conversions tied to the note and to meet the necessary regulatory filings with the U.S. Securities and Exchange Commission (SEC). They aim to have a resale registration statement on Form F-3 filed to ensure compliance with U.S. laws. This strategic move highlights IM Cannabis Corp's dedication to maintaining transparency and regulatory adherence, which is critical in the highly regulated cannabis industry.

All securities issued under this private placement are subject to a holding period of four months and one day from the issue date, reinforcing compliance with securities regulations.

About IM Cannabis Corp.

IM Cannabis Corp. is focused on expanding its footprint in the medical cannabis field. The firm operates a comprehensive ecosystem in Israel through its subsidiaries, which include the importation and distribution of cannabis products for medical patients. They also operate retail pharmacies and online platforms, ensuring controlled delivery and quality verification of their products throughout the supply chain. In Germany, IMC’s subsidiary Adjupharm GmbH plays a vital role in distributing medical cannabis to pharmacies, further solidifying its position in the European market.

As IM Cannabis Corp. continues to explore innovative technologies and strategies, this recent financing underscores its commitment to growth amidst evolving market dynamics. With a strong foundation and clear vision, IMC is well-poised to navigate the complexities of the cannabis industry.