TORONTO and GLIL YAM, Israel — IM Cannabis Corp., a leading medical cannabis company with operations in Israel and Germany, closed a private placement offering through the issuance of 2,050,000 units for gross proceeds of approximately US$4.1 million.
Each Unit consisted of one common share in the capital of the Company or one pre-funded Common Share purchase warrant in lieu thereof, and one Common Share purchase warrant.
Each Warrant entitles its holder to acquire one Common Share at an exercise price of C$3.43 per Warrant Share for a period of sixty months from its issuance.
Each Pre-Funded Warrant entitles its holder to purchase one Common Share (each, a “Pre-Funded Share”) at a price of C$0.00001 per Pre-Funded Share at any time until exercised in full.
Pure Equity Ltd. acted as a consultant to the Offering.
All securities issued under the Offering are subject to a hold period of four months and one day from the Closing Date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. The Offering is being made in reliance on an exemption from registration under the United States Securities Act of 1933, as amended. Accordingly, the securities issued in the Offering may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
The Company has agreed to file a resale registration statement on Form F-3 (or other available form) providing for the resale by the purchasers of the Common Shares, the Warrant Shares and the Pre-Funded Shares within thirty calendar days of the Closing Date. The Company shall use commercially reasonable efforts to cause such Registration Statement to become effective as soon as practicable, but in no event later than the date, which shall be either: (i) in the event that the U.S. Securities and Exchange Commission does not review the Registration Statement, sixty calendar days after the Closing Date, or (ii) in the event that the U.S. Securities and Exchange Commission reviews the Registration Statement, ninety days after the Closing Date.
The Company intends to use the proceeds from the Offering for general working capital, repayment of existing indebtedness and general corporate purposes.
About IM Cannabis Corp.
IM Cannabis (Nasdaq: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany, two of the largest medical cannabis markets. The Company leverages a transnational ecosystem powered by a data-driven approach and a globally sourced product supply chain. The IM Cannabis ecosystem operates in Israel through its subsidiaries, which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms, distribution center, and logistical hubs in Israel that enable the safe delivery and quality control of IM Cannabis products throughout the entire value chain. In Germany, the IM Cannabis ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients.
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