IM Cannabis Explores U.S. Market Entry Following President Trump's Executive Order on Increasing Medical Marijuana and Cannabidiol Research

Rhea-AI Summary

IM Cannabis (Nasdaq: IMCC) announced on Dec 30, 2025 that it is evaluating strategic options to enter the U.S. cannabis market after President Trump's Dec 18, 2025 executive order directing rescheduling of marijuana toward Schedule III. The company engaged SSC Advisors to provide financial advisory services to support potential U.S. market entry, identify partners or acquirors, and manage transaction processes related to its German and Israeli operations. IM Cannabis said it will continue monitoring federal rescheduling developments as it assesses possible divestitures and U.S. expansion opportunities.

Positive

• Engaged SSC Advisors to advise on U.S. entry and transactions (Dec 30, 2025)

Negative

• Announced evaluation of potential divestitures of German and Israeli operations (Dec 30, 2025)

Key Figures

Executive order date December 18, 2025 Order directing rescheduling of marijuana under Controlled Substances Act

Current schedule Schedule I Existing federal classification for marijuana before directed rescheduling

Target schedule Schedule III Classification directed by executive order for marijuana

Market Reality Check

$1.47 Last Close

Volume Volume 47,111 is well below 20-day average 310,248, indicating muted pre-news activity. low

Technical Shares at $1.38 are trading below the 200-day MA of $2.06 and far under the $7.12 52-week high.

Peers on Argus

Ahead of this news, IMCC was down 3.5%. Several higher-affinity peers like FLGC (-4.17%), TXMD (-1.75%) and GELS (-2.31%) also traded lower, while EVOK was slightly positive (+0.18%). The mixed moves and empty momentum scanner suggest stock-specific factors rather than a clean sector-wide move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 12	CFO appointment	Positive	+12.6%	New CFO with extensive finance experience appointed, replacing outgoing executive.
Nov 13	Earnings release	Negative	-9.0%	Flat revenue, rising expenses, impairment and going concern language in Q3 results.
Nov 06	Earnings date notice	Neutral	-0.8%	Company scheduled Q3 2025 results release and call date for investors.
Oct 29	CFO departure	Negative	+0.0%	CFO announced planned departure for personal reasons with transition period.
Oct 23	Acquisition term sheet	Positive	-9.7%	Non-binding term sheet to buy 60% of quantum computing bio data business.

Pattern Detected

Recent news has often been met with sharp moves, with negative reactions to strategic/transaction updates and earnings, and a strong positive response to the latest CFO appointment. Strategic announcements have not consistently translated into positive price action.

Recent Company History

Over the last few months, IM Cannabis has mixed operational and strategic signals. On Oct 23, 2025, it signed a non-binding term sheet to acquire a 60% stake in a quantum computing bio data firm for up to $54M, which coincided with a -9.68% move. Q3 2025 earnings on Nov 13 highlighted flat $13.9M revenue, higher expenses, a $3.1M impairment, and a going concern note, followed by a -9.03% reaction. Leadership changes, including the CFO departure and subsequent appointment on Dec 12, drew more muted to positive responses. Today’s strategic U.S.-entry review and possible divestitures build on this ongoing restructuring narrative.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-06-26

$50 million registered capacity

IM Cannabis has an effective Form F-3 shelf (filed June 26, 2025) allowing issuance of up to $50 million in securities, providing flexibility to fund strategic actions such as U.S. expansion or portfolio changes via equity, warrants, or units. The company has recorded 0 takedowns under this shelf so far.

Market Pulse Summary

This announcement links IM Cannabis’s strategy to the December 18, 2025 executive order directing marijuana’s move from Schedule I to Schedule III under the Controlled Substances Act. The company is exploring U.S. market entry and potential divestitures of its German and Israeli operations with the help of SSC Advisors. Investors may watch how this review interacts with its effective $50 million shelf capacity, prior acquisition plans, and recent leadership changes when assessing execution and financing risk.

Key Terms

executive order regulatory

"This initiative follows President Donald Trump's executive order signed on December 18, 2025"

An executive order is a formal directive issued by a country’s chief executive (for example, a president or prime minister) that tells government agencies how to apply or enforce laws and policies without waiting for new legislation. It matters to investors because these orders can quickly change rules, permits, taxes, trade or regulatory enforcement—like a manager changing company policy overnight—creating risks or opportunities that can affect company costs, revenues and share prices.

cannabidiol medical

"Increasing Medical Marijuana and Cannabidiol Research"

Cannabidiol (CBD) is a natural compound found in cannabis and hemp plants that does not produce a “high.” Investors watch CBD because it is the active ingredient in many health, wellness, and consumer products, and its value depends on shifting rules, clinical evidence, product approvals, and consumer demand—much like a key ingredient in a popular food or drug that determines shelf placement, pricing, and sales potential.

Controlled Substances Act regulatory

"from Schedule I to Schedule III under the Controlled Substances Act"

A federal law that creates the rules for which drugs and chemicals are legal, how they are classified by risk, and what licenses and controls are required for manufacture, distribution, research, and medical use. For investors, these classifications act like traffic signals — they determine how easy or hard it is for companies to develop, sell, or research certain medications and can sharply affect a company’s regulatory cost, market access, and legal risk.

Schedule III regulatory

"rescheduling of marijuana from Schedule I to Schedule III"

A Schedule III classification is a regulatory category for drugs and substances that have a recognized medical use but a moderate risk of dependence or abuse, placing them between higher-risk controlled drugs and over-the-counter medicines. For investors, this matters because it shapes how a product can be manufactured, prescribed, marketed and distributed — affecting potential sales, regulatory hurdles, labeling requirements and legal exposure in the market; think of it as a middle level of control that influences commercial access and compliance costs.

AI-generated analysis. Not financial advice.

Engages Exclusive Financial Advisors for U.S. Opportunities and Potential Divestitures of German and Israeli Operations

TORONTO and GLIL YAM, Israel, Dec. 30, 2025 /PRNewswire/ -- IM Cannabis Corp. ("IMC" or the "Company") (Nasdaq: IMCC), medical cannabis company with operations in Israel and Germany, today announced that it is actively evaluating certain strategic opportunities to expand its operations into the United States cannabis market. This initiative follows President Donald Trump's executive order signed on December 18, 2025, which directs the Attorney General to expedite the rescheduling of marijuana from Schedule I to Schedule III under the Controlled Substances Act, recognizing its medical benefits while maintaining federal oversight.

To advance its U.S. entry strategy and assess potential divestitures of its businesses in Germany and Israel, the Company has engaged SSC Advisors to act as its financial advisors. The advisors are expected to provide customary financial advisory services, including strategic guidance on potential U.S. cannabis market entry, the identification of potential partners or acquirors, and management of any transaction processes related to the Company's German and Israeli operations.

IMC will continue to monitor developments related to the executive order and federal rescheduling process.

About IM Cannabis Corp.

IMC (Nasdaq: IMCC) is an international medical cannabis company that provides premium cannabis products to medical patients in Israel and Germany. The Company has focused its resources to achieve sustainable and profitable growth in its highest value markets, Israel and Germany. The Company leverages a transnational ecosystem powered by a unique data-driven approach and a globally sourced product supply chain. With an unwavering commitment to responsible growth and compliance with the strictest regulatory environments, the Company strives to amplify its commercial and brand power to become a global high-quality cannabis player.

The IMC ecosystem operates in Israel through its subsidiaries, which import and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies and online platforms, in Israel that enable the safe delivery and quality control of IMC products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients.

Disclaimer for Forward-Looking Statements

This press release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian and United States securities laws (collectively, "forward-looking statements"). Forward-looking statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements.

Forward-looking statements in this press release include, but are not limited to, statements regarding: the Company's strategic opportunities, including potential entry into the U.S. cannabis market; the engagement with SSC advisors, any outcomes of such engagements and any services expected to be provided; any potential divestiture or other transaction involving the Company's German and Israeli operations; the development and implementation of the executive order, and the completion of the rulemaking process related to the executive order; and the Company's preliminary unaudited revenue estimate for its German operations for the fourth quarter of 2025.

Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements. For additional information regarding risks and uncertainties, please refer to the "Risk Factors" section in the Company's annual report dated March 31, 2025, available on SEDAR+ and EDGAR.

Logo - https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg

Company Contact:

Michal Efraty Investor & Public Relations 
IM Cannabis Corp. 
michal@efraty.com

Oren Shuster, CEO 
IM Cannabis Corp. 
info@imcannabis.com

SSC Advisors Contact:

Aaron Salz 
aaron@sscadvisors.com

Brian Schinderle 
brian@sscadvisors.com

View original content:https://www.prnewswire.com/news-releases/im-cannabis-explores-us-market-entry-following-president-trumps-executive-order-on-increasing-medical-marijuana-and-cannabidiol-research-302650660.html

SOURCE IM Cannabis Corp.

FAQ

What did IM Cannabis (IMCC) announce on Dec 30, 2025 about U.S. expansion?

IM Cannabis said it is evaluating strategic opportunities to enter the U.S. cannabis market and has engaged SSC Advisors to support that effort.

How does President Trump's Dec 18, 2025 executive order affect IM Cannabis (IMCC)?

The company cited the Dec 18, 2025 executive order directing federal rescheduling as a catalyst for assessing U.S. market entry options.

What role will SSC Advisors play for IM Cannabis (IMCC)?

SSC Advisors will provide customary financial advisory services, including strategic guidance, partner or acquiror identification, and transaction management.

Is IM Cannabis (IMCC) selling its German and Israeli operations?

IM Cannabis is evaluating potential divestitures of its German and Israeli operations but has not announced any sale or binding agreement.

Will IM Cannabis (IMCC) immediately list U.S. operations after the rescheduling order?

The company said it is actively evaluating U.S. opportunities and will monitor the federal rescheduling process before taking further action.