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

On July 1, 2026, IM Cannabis Corp. (NASDAQ: IMCC), a dedicated player in the medical cannabis sector with active operations in Israel and Germany, announced a significant achievement in securing funding through a private placement. The company successfully raised $225,000 via convertible note financing from a notable institutional investor.

This financing arrangement, formalized under the July Note Purchase Agreement, entails the issuance of a convertible note valued at $225,000, featuring an original issuance discount of 10%. This note is set to accrue interest at a rate of 8% per annum and could increase to 14% if specific default events occur, as outlined in the document. Importantly, this convertible note lacks immediate cash repayment requirements, with obligations met solely through the issuance of common shares upon conversion.

The conversion mechanics of the July Note are particularly noteworthy. The price at which conversion occurs is determined by whichever is lower: a fixed price of $0.152 per share or 90% of the lowest daily volume-weighted average price over the 20 trading days prior to conversion, ensuring a floor of $0.0303. Additionally, the agreement caps beneficial ownership at 4.99%, in line with customary restrictions outlined in such financing arrangements.

In conjunction with the July Note, the company additionally issued a warrant, allowing for the purchase of up to 1,483,386 common shares at an exercise price of C$0.22 each. This warrant is immediately exercisable and valid for five years, providing the investor with a potential pathway to further involvement with IM Cannabis.

The funds generated from this private financing initiative are earmarked for general corporate purposes, reinforcing the company's growth strategy and operational capabilities. IM Cannabis Corp. plans to reserve adequate shares for issuance, facilitating the conversion process of the July Note and the exercises of the associated warrants. Furthermore, the company has committed to filing a resale registration statement with the U.S. Securities and Exchange Commission to ensure compliance and efficiency in its capital-raising activities.

All securities issued through this financing will come with a four-month hold period from the issuance date, adhering to relevant regulations under the U.S. Securities Act of 1933 and pertinent Canadian securities laws. As such, the securities will not be available for immediate sale in the U.S. or Canada unless timely registration or exemption provisions are met.

About IM Cannabis Corp.

IM Cannabis Corp. operates on an international scale, focusing on pioneering and expanding innovative business practices and technologies within the medical cannabis industry. It currently plays a pivotal role in serving medical patients in Israel and Germany, with ongoing evaluations to explore new, technology-driven sectors.

In Israel, IM Cannabis leverages a comprehensive approach through its subsidiaries, providing a valuable medical cannabis distribution network to patients while emphasizing data-driven insights. The firm also manages retail pharmacies and e-commerce platforms to guarantee safe delivery and quality assurance of its cannabis products globally. Meanwhile, operations in Germany are primarily facilitated through Adjupharm GmbH, which oversees cannabis distribution to pharmacies catering to medical patients.

With a strategic focus on growth and expansion in the medical cannabis sector, IM Cannabis Corp. illustrates a progressive approach to financing and market engagement, positioning itself for future opportunities and advancements.