IM Cannabis Receives NASDAQ Notification of Regaining Compliance with Nasdaq's Minimum Bid Price Requirement

Rhea-AI Summary

IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) has regained compliance with Nasdaq's minimum bid price requirement. The company received formal notice from Nasdaq on July 26, 2024, confirming its adherence to the $1.00 per share minimum for 10 consecutive business days from July 12 to July 25, 2024. This development follows a previous notification of non-compliance on August 1, 2023, and a subsequent 180-day extension granted on January 31, 2024. IMC, a leading medical cannabis company operating in Israel and Germany, is now fully compliant with all applicable Nasdaq listing standards and will continue to be listed and traded on the Nasdaq Stock Market.

Positive

• Regained compliance with Nasdaq's minimum bid price requirement
• Continued listing on Nasdaq Stock Market secured
• Demonstrated ability to maintain share price above $1.00 for 10 consecutive business days

Negative

• None.

Insights

Financial Analyst

The regaining of compliance with NASDAQ's minimum bid price requirement is a positive development for IM Cannabis, but its overall impact on the company's financial health and market position is Here's why:

• Maintaining NASDAQ listing ensures continued access to a broader investor base and potentially better liquidity for the stock.
• However, this news doesn't directly impact the company's fundamental financial performance or operational metrics.
• The $1.00 minimum bid price was achieved through market forces rather than a reverse stock split, which is generally viewed more favorably by investors.
• It's worth noting that the stock price hovered just above the minimum requirement for the required period, indicating potential fragility in maintaining this status.

From an investor's perspective, while avoiding delisting is crucial, it's more important to focus on IM Cannabis' revenue growth, market share in Israel and Germany and path to profitability. These factors will have a more significant impact on the company's long-term value and stock performance.

Investors should also consider the broader context of the cannabis industry, including regulatory changes and market dynamics in IM Cannabis' key operating regions. The company's ability to capitalize on these markets will be more determinative of its future success than merely maintaining its NASDAQ listing.

Market Research Analyst

While IM Cannabis' compliance with NASDAQ requirements is a positive sign, it's essential to view this in the context of the broader cannabis market landscape:

• The cannabis industry, particularly in international markets like Israel and Germany, is still in a state of flux with evolving regulations and market dynamics.
• IM Cannabis' focus on medical cannabis in these markets positions it differently from North American recreational cannabis companies, potentially offering more stable growth prospects.
• However, the company's stock price hovering near the $1 mark suggests investor sentiment remains cautious. This could be due to broader industry challenges or company-specific factors.

Looking ahead, investors should watch for:

• Regulatory developments in Germany, where the government is considering cannabis legalization, which could significantly expand IM Cannabis' addressable market.
• Growth in Israel's medical cannabis patient numbers and any moves towards recreational legalization.
• IM Cannabis' ability to differentiate its products and expand market share in these competitive markets.

The company's ability to maintain NASDAQ listing is positive for visibility and liquidity, but long-term success will depend on executing its business strategy effectively in these key markets. Investors should look beyond this compliance news and focus on operational metrics and market expansion efforts in future reports.

TORONTO and GLIL YAM, Israel, July 29, 2024 /PRNewswire/ -- IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) (the "Company", "IMCannabis", or "IMC"), a leading medical cannabis company with operations in Israel and Germany, today announced that on July 26, 2024, it has received formal notice from The Nasdaq Stock Market, LLC ("Nasdaq") stating that the Company has regained compliance with the minimum bid price requirement set forth in Rule 5550(a)(2) of the Nasdaq Listing Rules (the "Minimum Bid Price Requirement"). IMC is now in compliance with all applicable listing standards and will continue to be listed and traded on the NASDAQ Stock Market.

As previously announced, the Company was notified by Nasdaq on August 1, 2023, that it was not in compliance with the Minimum Bid Price of $1.00 per share for 30 consecutive business days as required by the Listing Rules of Nasdaq and on January 31, 2024 has received a 180 calendar day extension, until July 29, 2024, from Nasdaq to regain compliance. Since then, Nasdaq staff has determined that for the last 10 consecutive business days, from July 12, 2024, to July 25, 2024, the closing bid price of the Company's Ordinary Shares has been at $1.00 per share or greater. Accordingly, the Company has regained compliance with Listing Rule 5550(a)(2) and the matter has been closed.

About IM Cannabis Corp.

IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany, two of the largest medical cannabis markets. 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 Focus Medical Herbs Ltd. ("Focus Medical"), which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms, distribution centers, and logistical hubs 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 or forward-looking statements under applicable Canadian and U.S. 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 compliance with Nasdaq's continued listing requirements, and timing and effect thereof; Company leaving the Canadian cannabis market to focus on Israel, Germany and Europe; the restructuring and sale of Trichome under CCAA Proceedings.

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:  any failure of the Company to maintain "de facto" control over Focus Medical in accordance with IFRS 10; 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 Canadian Securities Exchange and the NASDAQ Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and Focus Medical (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 and war, conflict and civil unrest in Eastern Europe and the Middle East.

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.

Company Contact:

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

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SOURCE IM Cannabis Corp.

FAQ

When did IM Cannabis (IMCC) regain compliance with Nasdaq's minimum bid price requirement?

IM Cannabis (IMCC) regained compliance with Nasdaq's minimum bid price requirement on July 26, 2024, as confirmed by a formal notice from Nasdaq.

What was the minimum bid price requirement that IM Cannabis (IMCC) had to meet?

IM Cannabis (IMCC) had to maintain a closing bid price of $1.00 per share or greater for at least 10 consecutive business days to meet Nasdaq's minimum bid price requirement.

How long did IM Cannabis (IMCC) have to regain compliance with Nasdaq's listing rules?

IM Cannabis (IMCC) was initially notified of non-compliance on August 1, 2023, and received a 180-day extension on January 31, 2024, giving them until July 29, 2024, to regain compliance.

What are the main markets of operation for IM Cannabis (IMCC)?

IM Cannabis (IMCC) is a medical cannabis company with operations primarily in Israel and Germany.