IM Cannabis Raises US$225,000 of Gross Proceeds in Convertible Note Financing

IM Cannabis Corp. (NASDAQ: IMCC), a medical cannabis company with operations in Israel and Germany, has successfully closed a convertible note financing valued at US$225,000. The transaction, finalized on July 1, 2026, involved a private placement with an institutional investor, referred to as the Lender. This financing arrangement is structured through a note purchase agreement, which allows IM Cannabis to raise capital while providing the Lender with the option to convert the note into common shares of the company.

The convertible note issued by IM Cannabis carries a principal amount of US$225,000, accompanied by a 10% original issuance discount. The note has an interest rate of 8% per annum, which escalates to 14% in the event of a default. Importantly, the note is designed to be non-repayable in cash, with obligations fulfilled solely through the issuance of common shares upon conversion. The conversion terms stipulate a fixed price of US$0.152 per common share or a percentage of the lowest daily volume-weighted average price over the 20 trading days preceding the conversion date, subject to a floor price of US$0.0303.

In conjunction with the note, IM Cannabis issued warrants allowing the purchase of up to 1,483,386 common shares at an exercise price of C$0.22 per share. These warrants are immediately exercisable and will remain valid for five years, expiring on July 1, 2031. The company plans to utilize the net proceeds from this financing for general corporate purposes, indicating a strategic approach to bolster its operational capabilities and market presence.

The cannabis sector is currently experiencing significant growth, driven by increasing legalization and acceptance of medical and recreational cannabis in various jurisdictions. IM Cannabis, with its established operations in Israel and Germany, is well-positioned to capitalize on these trends. The company's focus on building a comprehensive medical cannabis platform, which includes importing, distributing, and retailing cannabis products, aligns with the broader industry dynamics favoring integrated business models.

The successful completion of this financing round underscores the ongoing investor interest in the cannabis sector, particularly in companies with a robust operational framework and growth potential. As regulatory landscapes continue to evolve, IM Cannabis Corp.'s strategic initiatives and capital-raising efforts may enhance its competitive edge, contributing to its long-term growth trajectory in the expanding global cannabis market.