#Canada #Toronto #SEC Filing #IM Cannabis #Warrant Amendments

IM Cannabis Corp. Reports Major Developments in Warrant Amendments

IM Cannabis Corp. is in the spotlight following its announcement regarding significant adjustments to common share purchase warrants and a recent filing with the Securities and Exchange Commission (SEC). As a premier medical cannabis company operating primarily in Israel and Germany, these developments are expected to shape its future operations and market presence.

In its latest disclosure, IM Cannabis reported that it has reached an agreement with warrant holders of the November 2024 Warrants, initially offered during a non-brokered private placement that concluded on November 12, 2024. Key changes include a reduction in the exercise price from C$4.32 to C$3.43 and an extension of the expiry date from November 12, 2026, to July 31, 2030. These amendments are aimed at offering holders a more favorable position, potentially driving greater market participation.

Form F-3 Resale Registration Statement

Simultaneously, IM Cannabis has filed a resale registration statement on Form F-3 with the SEC, as indicated in their press release dated July 31, 2025. This filing encompasses an aggregate of 4,982,517 common shares, including various warrants and options, which will enable certain shareholders to resell their securities effectively once the registration becomes effective.

The components of the filings include:

• - 1,202,000 Common Shares
• - 848,000 Common Shares for Pre-Funded Warrants
• - 2,050,000 Common Shares for regular Warrants
• - 140,000 Common Shares linked to Finders' Warrants
• - 742,517 Common Shares associated with the November 2024 Warrants

Once the SEC approves the registration statement, shareholders will have the opportunity to utilize the accompanying prospectus for reselling their shares, a move calculated to enhance liquidity among investors. However, it's important to note that IM Cannabis will not benefit financially from the resale of these securities.

Related Party Transaction Insights

The announcement also highlights the involvement of notable company insiders. Oren Shuster, the CEO, and Shmulik Arbel, along with Rafael Gabay, are among the directors who participated in these warrant amendments as holders. Their stake sizes include:

• - 194,110 Warrants held by Oren Shuster
• - 48,349 Warrants held by Shmulik Arbel
• - 194,088 Warrants held by Rafael Gabay

This participation is categorized as a related party transaction, which typically necessitates broader shareholder approval as outlined in Canadian securities regulations. The company is leveraging exemptions, citing that the combined valuation does not exceed 25% of the company’s market capitalization.

Future Outlook for IM Cannabis

Looking ahead, IM Cannabis appears to be reinforcing its market position and operational capabilities. With a business model focused on blended operations in Israel and Germany, the company prides itself on using a data-driven approach for growth and compliance with stringent regulations. As they navigate both regional markets and potential expansion, the firm remains committed to providing high-quality cannabis products to medical patients.

The recent changes in the company's warrant framework, coupled with the SEC filing, signal a proactive strategy to enhance shareholder value and ensure liquidity for existing investors. As further developments unfold, stakeholders are advised to stay tuned for subsequent announcements that will detail the ongoing performance of IM Cannabis in the evolving cannabis landscape.

For further inquiries regarding the warrant amendments or SEC registration, IM Cannabis has designated contacts within their Investor Relations department to provide ongoing support and clarity for shareholders and the public.

Company Overview

IM Cannabis Corp. is dedicated to supplying premium cannabis products to medical patients, actively leveraging its international presence and a unique operational ecosystem. Focused on compliance and responsible growth, the company is strategically positioned to capitalize on evolving market opportunities in both Israel and Germany.