IMCC · IM Cannabis Corp.

IM Cannabis Corp. delivered a significant operational turnaround in 2025, marked by its first full year of positive operating cash flow in recent history. The company reported total revenue of C$54.7 million, with a notable shift in geographic mix. Germany emerged as the primary growth driver, with revenue surging over 134% to C$36.3 million, now representing over 66% of total Group revenue. This growth highlights the successful execution of the company’s EU-GMP-certified production and distribution strategy following Germany’s medical cannabis legalization. Conversely, the Israeli market faced ongoing challenges, though the company demonstrated resilience by maintaining overall revenue stability. Gross profit increased approximately 15% to C$9.7 million, attributed to cost efficiencies, optimized supply chains, and a higher proportion of margin-accretive German sales. Operationally, the company generated C$4.7 million in cash from operating activities, a stark improvement from the negative C$1.1 million outflow in 2024. The balance sheet strengthened, with cash and restricted cash rising to C$3.3 million at year-end, supported by a private placement yielding net proceeds of C$5.1 million and the management of convertible debentures. Looking beyond its core cannabis business, IM Cannabis announced a strategic diversification initiative via a non-binding letter of intent to acquire 51% of Black Axe Technology, a Polish company specializing in defense and intelligence solutions. This proposed transaction signals management's intent to expand into high-growth technology sectors, specifically cyber drone interception and AI analytics, though completion remains subject to due diligence and definitive agreements.