IM Cannabis Raises US$250,000 of Gross Proceeds in Convertible Note Financing
Rhea-AI Summary
IM Cannabis (Nasdaq: IMCC) closed a private placement of a US$250,000 principal amount convertible note with an institutional investor on August 7, 2026. The note carries a 10% original issue discount, bears interest at 8% per annum (rising to 14% upon default) and is not repayable in cash, with obligations settled solely through issuance of common shares upon conversion.
The conversion price is the lower of a fixed US$0.122 per share or 90% of the lowest daily VWAP over the 20 trading days before conversion, subject to a US$0.02436 floor and a 4.99% beneficial ownership cap. IM Cannabis also issued warrants to purchase up to 2,052,545 common shares at C$0.17, exercisable immediately until August 7, 2031. According to IM Cannabis, net proceeds will be used for general corporate purposes, and the company plans to file a resale registration statement on Form F-3 with the SEC.
Positive
- US$250,000 principal raised via convertible note private placement
- Note obligations settled in shares, avoiding cash repayment requirements
- Issued 2,052,545 warrants at C$0.17, exercisable until August 7, 2031
Negative
- 10% original issue discount reduces immediate net proceeds below US$250,000
- Convertible note bears 8%–14% annual interest, adding financing cost
- Equity-only settlement and conversion terms may increase share count and dilute existing holders
News Explained
Although the financing closed on
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 27 | Corporate update | Neutral | +1.3% | Board director resigned for personal reasons; company operations remained described. |
| Jul 01 | Convertible note financing | Negative | -1.4% | US$225,000 note financing used shares for repayment and included warrants. |
| Jun 18 | European asset sale | Positive | -16.5% | Non-binding European asset sale proposed assumption of approximately C$10.5 million debt. |
| Jun 09 | F-3 resale filing | Negative | -8.7% | F-3 resale registration covered shares from convertible notes and accompanying warrants. |
| Jun 03 | Convertible note financing | Negative | +1.8% | US$225,000 note financing included warrants and proceeds designated for general corporate purposes. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Convertible-note financing reactions were mixed, with prior 24-hour moves of -1.35% and +1.76%; an F-3 resale filing was followed by -8.7%.
Key Terms
convertible note financial
original issuance discount financial
volume-weighted average price financial
beneficial ownership cap regulatory
form f-3 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Pursuant to a note purchase agreement between the Company and Lender dated August 6, 2026 (the "August Note Purchase Agreement"), the Company issued the Lender a note in the principal amount of
The August Note bears interest at a rate of
The conversion price in the August Note is set to the lower of (i) a fixed price of
In connection with the August Note, the Company issued a warrant to purchase up to 2,052,545 Common Shares (the "August Note Warrants") at an exercise price of
The Company intends to use the net proceeds from the August Note for general corporate purposes.
In connection with the August Note Purchase Agreement, the Company has agreed to reserve sufficient Common Shares for issuance upon conversion of the August Note and exercise of the August Note Warrants and to file a resale registration statement on Form F-3 with the
All securities issued under the financing described above are subject to: (i) a four month and one day hold period from the date of issuance and (ii) applicable legends as required pursuant to the
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) is an international company focused on building and scaling innovative businesses and technologies across global markets. The Company currently operates a medical cannabis platform serving patients in Israel and Germany while evaluating opportunities to expand into additional technology-driven sectors.
The IMC ecosystem operates in Israel through its subsidiaries, which import and distribute 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.
Company Contact:
Michal Efraty
Investor & Public Relations
IM Cannabis Corp.
michal@efraty.com
Oren Shuster, Chief Executive Officer
IM Cannabis Corp.
info@imcannabis.com
Disclaimer for Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements under applicable Canadian and United States securities laws (collectively, "forward-looking statements"). All information that addresses activities or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the press release, such forward-looking statements include, but are not limited to, statements relating to: the receipt of and use of proceeds from the financing and the preparation, timing and filing of the registration statement with the SEC. The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward-looking statements due to a number of factors and risks. These include: the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the Company's ability to continue to meet the listing requirements of the Nasdaq Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and its subsidiaries (collectively, the "Group") to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group's obligations; the Group's possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group's cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt; risks surrounding war, conflict and civil unrest in Eastern Europe and the Middle East, including the impact of the multi front war Israel is facing on the Company, its operations and the medical cannabis industry in Israel; risks associated with the Company focusing on the Israel and Germany markets; the inability of the Company to achieve sustainable profitability and/or increase shareholder value; the inability of the Company to actively manage costs and/or improve margins; the inability of the company to grow and/or maintain sales; the inability of the Company to meet its goals and/or strategic plans; the inability of the Company to reduce costs and/or maintain revenues; the Company's inability to take advantage of the legalization of medicinal cannabis in Germany; the Company's inability to use the proceeds as set out herein; and the Company's inability to file a registration statement in the timelines outlined herein or at all.
Please see the other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual report for the year ended December 31, 2025, which is available on the Company's issuer profile on SEDAR+ at www.sedarplus.ca and Edgar at www.sec.gov/edgar. Any forward-looking statement included in this press release is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward looking information is made. The Company does not undertake any obligation to update forward-looking statements, except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
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SOURCE IM Cannabis Corp.