#Canada #Israel #Toronto #medical cannabis #IM Cannabis

IM Cannabis Corp. Reports Significant Corporate Developments

Overview
IM Cannabis Corp. (NASDAQ: IMCC, CSE: IMCC), a prominent player in the medical cannabis space, has recently provided comprehensive updates regarding its corporate structure and financial strategies. The company, which operates primarily in Israel and Germany, aims to strengthen its market presence by optimizing its resources and aligning its operations with sustainable growth practices.

Key Developments

On May 23, 2025, IM Cannabis conducted its annual general and special meeting, with 60 shareholders representing approximately 45.84% of the outstanding shares participating. The shareholders approved all resolutions presented during the meeting, paving the way for several operational changes and managerial appointments.

Meeting Outcomes

Crucial voting results included the election of directors. Oren Shuster received a remarkable 99.61% of votes in his favor, followed by Moti Marcus and Einat Zakariya, who garnered 89.47% and 88.93%, respectively. Additionally, shareholders reaffirmed the total number of directors to five and reappointed Fahn Kanne & Co. Grant Thornton Israel as the auditor for the fiscal year. They also approved the proposed equity incentive plan, marking a strategic shift aimed at enhancing employee motivation and aligning their interests with shareholder objectives.

Focus Transaction and Debt Settlement

Following the successful conclusion of shareholder voting, IM Cannabis announced the closing of the Focus Transaction as of May 26, 2025. This transaction involved the settlement of a significant amount of debt, approximately NIS 818,740 (around C$313,970), through the issuance of new shares. This approach aims to preserve the company’s cash reserves while streamlining operations.

To execute this transaction, IM Cannabis and involved parties agreed to convert significant debts into shares. A total of 128,818 Common Shares will be issued at a deemed price of C$2.44 per share, aligning with the company’s ten-day volume-weighted average share price leading up to the transaction’s approval date. Despite being classified as a related party transaction, the necessary approvals were ensured through proper governance measures, reinforcing the company’s commitment to ethical business practices.

Pre-Funded Warrant Exercise

On the same date, Mr. Oren Shuster, the CEO, exercised 152,701 Pre-Funded Warrants, allowing him to purchase common shares at a minimal cost. This move signals confidence in IM Cannabis’s operational strategy and reinforces his commitment to the company's long-term success.

Secured Debenture Offering

Furthermore, IM Cannabis successfully completed a Secured Debenture Offering, which raised C$2,301,174.70. This funding is strategically directed towards supporting the company’s growth, particularly in Germany, where securing a footprint is seen as vital to capitalizing on the expanding European medical cannabis market.

Notably, both Mr. Shuster and Rafael Gabay, who are associated insiders, participated in this debenture offering, fueling discussions surrounding governance and compliance with investment regulations.

Future Perspectives

Moving forward, IM Cannabis remains focused on optimizing operational efficiencies and expanding its market capabilities in both Israel and Germany. The company aims to leverage its data-driven approach, thereby ensuring compliance and tapping into the burgeoning demand for high-quality medical cannabis.

The company is acutely aware of the dynamics of the market and plans to align its strategies accordingly. By fostering an environment that encourages responsible growth, IM Cannabis strives for a leadership position within the global cannabis industry.

With significant organizational updates now in place, investors and stakeholders can expect to see elevated efforts towards achieving long-term value and operational excellence. The commitment to both the markets of Israel and Germany places IM Cannabis in a strong position to navigate the evolving landscape of medical cannabis effectively.

As the industry continues to evolve, IM Cannabis is set on a path to not only meet market demands but also to lead with innovation and sustainability at its core.