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IM Cannabis Raises US$225,000 of Gross Proceeds in Convertible Note Financing
IM Cannabis Corp. ("IMC" or the "Company") (Nasdaq: IMCC), a medical cannabis company with operations in Israel and Germany, today announced the closing of a US$225,000 convertible note financing in a private placement with an institutional investor (the "Lender").
About this update from Im Cannabis Corp.
TORONTO and GLIL YAM, Israel, June 3, 2026 /PRNewswire/ -- IM Cannabis Corp. ("IMC" or the "Company") (Nasdaq: IMCC), a medical cannabis company with operations in Israel and Germany, today announced the closing of a US$225,000 convertible note financing in a private placement with an institutional investor (the "Lender"). Pursuant to a note purchase agreement between the Company and Lender dated June 3, 2026 (the "June Note Purchase Agreement"), the Company issued the Lender a note in the principal amount of US$225,000, with an original issuance discount of 10% (the "June Note"). The June Note bears interest at a rate of 8% per annum, increasing to 14% upon the occurrence and continuation of an event of default, as defined in the June Note. The June Note is not repayable in cash and the Company's obligations thereunder will be satisfied solely through the issuance of common shares in the capital of the Company (the "Common Shares") upon conversion. The conversion price in the June Note is set to the lower of (i) a fixed price of US$0.288 per Common Share, or (ii) 90% of the lowest daily volume-weighted average price during the 20 consecutive trading days preceding the conversion date, subject to a floor price of US$0.0576. The June Note includes customary limitations, including a 4.99% beneficial ownership cap. In connection with the June Note, the Company issued a warrant to purchase up to 781,250 Common Shares (the "June Note Warrants") at an exercise price of C$0.40 per Common Share. The June Note Warrants became immediately exercisable upon their issuance date, June 3, 2026, and will expire after five years, on June 3, 2031. The Company intends to use the net proceeds from the June Note for general corporate purposes. In connection with the June Note Purchase Agreement, the Company has agreed to reserve sufficient Common Shares for issuance upon conversion of the June Note and exercise of the June Note Warrants and to file a resale registration statement on Form F-3 with the U.S. Securities and Exchange Commission (the "SEC") and to use commercially reasonable efforts to secure its effectiveness within the timeframes agreed with the Lender. All securities issued under the financing described above are subject to: (i) a four month and one day hold period from the date ...