IM Cannabis Corp Expands Its Horizons with Acquisition of Space Defense Innovations

In a strategic move to diversify its business activities, IM Cannabis Corp. (IMCC), a company known for its medical cannabis operations, has entered a non-binding Letter of Intent (LOI) to acquire a 51% stake in Space Defense Innovations LLC (SDI). This exciting announcement highlights IMCC's focus on investing in technology-driven ventures beyond its traditional cannabis roots.

The Non-Binding Agreement and Its Implications

The recent LOI signals a significant step for IM Cannabis Corp. as it seeks to acquire control of SDI, a Polish limited liability company operating within the fast-evolving domain of unmanned aerial systems (UAS). Utilizing its wholly owned subsidiary, BlueAero Group Sp. z o.o., SDI is poised to manufacture tactical UAS products from BlueBird Aero Systems in Europe, particularly in Poland, once necessary regulatory licenses are in place.

The products in question include advanced VTOL ISR (Vertical Take-Off and Landing Intelligence, Surveillance, and Reconnaissance) platforms, loitering munitions, and innovative 3D mapping capabilities. With a reliance on proprietary technology and military-grade engineering, SDI aims to leverage Israeli technology expertise to enhance its product offerings in the European market.

IM Cannabis's decision to explore this acquisition aligns seamlessly with its goal of evolving into a technology-centric organization, stepping away from sole reliance on medical cannabis. By diversifying into sectors like aerospace and defense, the company can mitigate risks associated with its current line of business.

Financial Structure of the Deal

Under the terms outlined in the LOI, IM Cannabis Corp. plans to acquire a 51% equity stake in SDI through a combination of IMCC common shares and/or pre-funded warrants. Remarkably, the agreement stipulates that no individual SDI shareholder will own more than 19.99% of IMCC as a result of this transaction. The financial agreement will also include a 24-month seller loan bearing an annual interest rate of 9%, which comes with 100% warrant coverage on the principal loan amount.

Furthermore, IMCC will have the right to appoint a majority of the board at SDI and is set to provide a line of credit to SDI of up to EUR 2.3 million upon closing. This move indicates the company’s commitment to ensuring that SDI will successfully scale its operations in Europe. The debt can be converted into shares at fair market value, guaranteeing IMCC a significant foothold in the equity of SDI.

The parties involved aim to finalize definitive agreements within the next 60 days. However, it's crucial to note that the LOI is non-binding with the exceptions of certain customary clauses related to confidentiality and exclusivity. Finalization of the deal remains subject to thorough due diligence and obtaining the necessary corporate and regulatory approvals.

About IM Cannabis Corp

Founded on principles of quality and patient care, IM Cannabis Corp. operates primarily within the medical cannabis space, servicing patients in Israel and Germany. Following a series of transactions announced in August 2026, the company intends to retain its core operations in Israel while divesting its German wing. This strategic realignment allows IMCC to streamline its resources towards higher-growth opportunities in emerging technology sectors, such as aerospace and defense.

In conclusion, the proposed acquisition of Space Defense Innovations signifies not just a new direction for IM Cannabis Corp., but a promising foray into a promising and rapidly expanding market segment. The outcome of this acquisition will likely shape the future of the company and its role within the technology landscape.

IM Cannabis Corp. is committed to informing its stakeholders about developments in this acquisition, and it remains focused on navigating the regulatory complexities that come with such expansions. As the company gears up for this significant shift, investors and enthusiasts alike will be watching closely for further announcements regarding the integration of SDI into its growing portfolio.