Business
IM Cannabis Corp. Enters into Letter of Intent to Sell its European Activities, Expects to Significantly Reduce Debt by CAD$10.5 million
IM Cannabis Corp. ("IMC" or the "Company") (NASDAQ: IMCC), a medical cannabis company with operations in Israel and Germany, is pleased to announce that it has entered into a non-binding letter of intent (the "Letter of Intent") with Slil.com Holding Ltd., a privately-held Israeli entity beneficially owned and controlled by Oren Shuster, the Company's Chief Executive Officer, a director and debtholder of IMC ("Slil"), pursuant to which the Company has agreed to sell to Slil its European-focused
About this update from Im Cannabis Corp.
Transaction Expected to Streamline Operations, Retain Israeli Business, Improve Working Capital through debt reduction and Cash Flow While Enabling the Pursuit of New Investment Opportunities as Previously Announced TORONTO and GLIL YAM, Israel, June 18, 2026 /PRNewswire/ -- IM Cannabis Corp. ("IMC" or the "Company") (NASDAQ: IMCC), a medical cannabis company with operations in Israel and Germany, is pleased to announce that it has entered into a non-binding letter of intent (the "Letter of Intent") with Slil.com Holding Ltd., a privately-held Israeli entity beneficially owned and controlled by Oren Shuster, the Company's Chief Executive Officer, a director and debtholder of IMC ("Slil"), pursuant to which the Company has agreed to sell to Slil its European-focused assets (the "Transaction"). Pursuant to the terms and conditions of the Letter of Intent, the Company will sell its wholly owned subsidiary, I.M.C. Holdings Ltd. ("IMC Holdings"), 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$10,500,000 of debt held by the Company and IMC Holdings, comprised of C$7,500,000 in retained liabilities and an additional C$3,000,000 in certain 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 Company believes that the proposed Transaction, if and when completed, may lead to a substantial debt reduction of C$10,500,000, improved working capital and balance sheet strength, enhanced cash flow, focus on operational efficiency and expected positive impact on long-term shareholder value. In connection with the Transaction, the board of directo...