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IM Cannabis Announces up to US$1,613,000 Private Placement Offering Led by Management
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE
About this update from Im Cannabis Corp.
[{"type":"text","content":"THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES\nTORONTO and GLIL YAM, Israel, Oct. 4, 2024 /PRNewswire/ -- IM Cannabis Corp. (\"IM Cannabis\" or the \"Company\") (NASDAQ: IMCC) (CSE: IMCC), a leading medical cannabis company with operations in Israel and Germany, is pleased to announce that it intends to undertake a non-brokered private placement offering of up to US$1,613,000 through the sale of approximately 625,000 units (each, an \"Unit\") at a price per Unit (the \"Offering Price\") calculated on the basis of the deemed price per common shares in the capital of the Company (each, a \"Share\") equal to the 10-day volume weighted average price of the Shares on Canadian Securities Exchange (the \"Exchange\") ending on the trading day preceding October 3, 2024.\n\nEach Unit will be comprised of one Share and one Share purchase warrant (each, a \"Warrant\"). Each Warrant shall entitle the holder thereof to acquire one additional Share (each, a \"Warrant Share) at a price equal to a 50% premium to the Offering Price (the \"Warrant Exercise Price\") at any time prior to 5:00 p.m. (Toronto time) on second anniversary of the closing date. The Offering, which is expected to close in one or more tranches, will be led by the Company's management team, including Oren Shuster, Chief Executive Officer and Chairman of the board of directors (the \"Board\") and Shmulik Arbel a director of the Company (together, the \"Insiders\"). \nAll securities issued under the Offering will be 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.\nThe Company intends to use the proceeds from the Offering for the repayment of a loan to A.D.I. CAR ALARMS & STEREO SYSTEMS Ltd. provided to the Company's subsidiary IMC Holdings Ltd. on October 11, 2022.\nThe closing of the Offering is expected to occur by November 11, 2024.\nLoan Bonus\nSince October 2022, the Company has borrowed from various groups more than US$8,000,000 (together, the \"Loans\"). As required by the lenders, Mr. Shuster has personally guaranteed the Loans. The independent members of the Boa...