TORONTO and GLIL YAM, Israel — IM Cannabis Corp., a medical cannabis company with operations in Israel and Germany,
received a written notification from the Nasdaq Stock Market LLC dated April 9, 2025, notifying the company that it is no longer in compliance with Nasdaq Listing Rule 5550(b)(1).
Nasdaq Listing Rule 5550(b)(1) requires companies listed on the Nasdaq Capital Market to maintain a minimum of US$2.5 million in stockholders’ equity for continued listing. In the Company’s Form 20-F for the period ended December 31, 2024, dated March 31, 2025, the Company reported stockholders’ equity of US$ $2,184,722. As of April 8, 2025, Nasdaq determined that the company does not meet the alternative requirements relating to market value of listed securities or net income from continuing operations and, therefore, no longer complies with the Listing Rule.
The Notification Letter has no immediate effect on the company’s listing on the Nasdaq Capital Market at this time, subject to the company’s compliance with other Nasdaq listing requirements. In accordance with Nasdaq Listing Rule 5810(c)(2)(A), the company has been provided 45 calendar days, or until May 26, 2025, to submit a plan to regain compliance. If such compliance plan is accepted by Nasdaq, the company may be granted an extension of up to 180 calendar days from the date of the Notification Letter to evidence compliance.
The company’s business operations are not affected by the receipt of the Notification Letter. The company is looking into various options available to regain compliance and maintain its continued listing on the Nasdaq Capital Market. Although the company will use all reasonable efforts to achieve compliance, there can be no assurance that the company will be able to regain compliance pursuant to the Notification letter, or that the company will otherwise be in compliance with other Nasdaq listing criteria.
The Notification Letter has no immediate impact on the listing of the company’s common shares, which will continue to be listed and traded on The Nasdaq Capital Market during this period, subject to the company’s compliance with other listing standards.
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) (CSE: 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 IMC 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 centers, and logistical hubs in Israel that enable the safe delivery and quality control of IMC products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients.
