TORONTO and GLIL YAM, Israel — IM Cannabis Corp. closed US$225,000 in convertible note financing in a private placement with an institutional investor.
The company issued the Lender an original issuance discount of 10%, and the note bears interest at a rate of 8% per annum, increasing to 14% upon the occurrence and continuation of an event of default. The note is not repayable in cash; the company’s obligations will be satisfied solely through the issuance of common shares upon conversion.
The conversion price in is set to the lower of (i) a fixed price of US$0.152 per common share, or (ii) 90% of the lowest daily volume-weighted average price during the 20 consecutive trading days preceding the conversion date, subject to a floor price of US$0.0303. The note includes customary limitations, including a 4.99% beneficial ownership cap.
In connection with the note, the company issued a warrant to purchase up to 1,483,386 common shares at an exercise price of C$0.22 per common share. The warrants became immediately exercisable upon their issuance date, July 1, 2026, and will expire after five years, on July 1, 2031.
The company intends to use the net proceeds for general corporate purposes.
