TORONTO and GLIL YAM, Israel — IM Cannabis Corp. (IMC), a medical cannabis company with operations in Israel and Germany, has agreed to sell its European assets to Slil.com Holding Ltd., a privately-held Israeli entity beneficially owned and controlled by by IMC Chief Executive Officer Oren Shuster, who is also a director and debtholder of IMC.
The Company will sell its wholly owned subsidiary, I.M.C. Holdings Ltd., to Slil, which, following a pre-closing reorganization, will primarily hold the company’s European operations, including Adjupharm GmbH in Germany, as well as the company’s interests in Xinteza API Ltd. and Shiran Societe Anonyme.
In consideration for the sale of all the issued and outstanding shares in the capital of IMC Holdings, Slil will assume an aggregate of approximately C$10.5 million in debt held by the company and IMC Holdings, comprising C$7.5 million in retained liabilities and an additional C$3 million in short-term liabilities, significantly reducing IMC’s debt burden.
Following the completion of the Transaction, IMC will retain its core Israeli operations, primarily through its subsidiaries Focus Medical Herbs Ltd., Rosen High Way Ltd., R.A. Yarok Pharm Ltd., and Rivoly Trading and Marketing Ltd., allowing the company to concentrate its resources on the Israeli market while pursuing potential additional investment opportunities and streamlining its corporate structure.
The Transaction remains subject to the negotiation and execution of a definitive agreement, approval by a special committee, regulatory clearances, if required, and satisfaction of other customary conditions.
