Business
IMC Provides Further Details on Panaxia Transaction
TORONTO, ON and GLIL YAM, ISRAEL / ACCESSWIRE / September 8, 2021 / IM Cannabis Corp. ("IMC" or the "Company") (CSE:IMCC) (NASDAQ:IMCC), a multi-country
About this update from Im Cannabis Corp.
TORONTO, ON and GLIL YAM, ISRAEL / ACCESSWIRE / September 8, 2021 / IM Cannabis Corp. ("IMC" or the "Company") (CSE:IMCC) (NASDAQ:IMCC), a multi-country operator ("MCO") in the medical and adult-use recreational cannabis sector with operations in Israel, Germany and Canada, provides details of the shares issued as part of the share consideration paid in connection with the previously announced acquisition of the Panaxia-to-the-Home online pharmacy and trading center IMC-GDP license from Panaxia Pharmaceutical Industries Israel Ltd. and Panaxia Logistics Ltd., part of the Panaxia Labs Israel, Ltd. group of companies ("Panaxia") (TASE:PNAX).As first announced on April 30, 2021, the Company's wholly-owned Israeli subsidiary, IMC Holdings Ltd.("IMC Holdings"), signed a definitive agreement with Panaxia, pursuant to which IMC Holdings will acquire Panaxia's trading house license and in-house pharmacy activities, for an aggregate purchase price of $7.2 million (the "PanaxiaTransaction"). The Panaxia Transaction will close in two stages, with the option of a third. IMC completed the first closing of the Panaxia Transaction on June 1, 2021, whereby it acquired all of Panaxia's online-related activities and intellectual property. At the second closing, which is subject to the approval of the Israeli Ministry of Health, IMC will acquire Panaxia's IMC-GDP license for distribution of medical cannabis. IMC has an option for third closing to acquire Panaxia's pharmacy, including licenses to dispense and sell to cannabis patients, which will become effective as of Feb. 15, 2022.The Panaxia Transaction purchase price was to be satisfied by a combination of $2.9 million in cash (the "Cash Consideration") and $4.3 million in common shares of the Company ("Consideration Shares"). The Cash Consideration was paid in two instalments according to the terms of the Transaction.To satisfy the share consideration component of the Panaxia Transaction, the Company will issue up to five instalments of Consideration Shares. The deemed price of each Consideration Share is calculated based on the average closing price of the Company's common shares on the Nasdaq Capital Market ("Nasdaq") over the 10 trading day period immediately preceding the date of issuance.On September 1, 2021, the Company issued the second instalment of 246,007 Consideration Shares in connection with the Panaxia Tra...