Research Reports

Key takeaways

Issued $300,000 principal convertible promissory note to L.I.A. Pure Capital Ltd. at 10% OID for $270,000 cash.

Note carries 8% annual interest, rising to 14% on default, convertible solely into common shares with no cash repayment.

Issued warrants for 1,127,820 common shares at CAD$0.36 exercise price, expiring May 7, 2031.

Securities issued under exemptions from U.S. Securities Act registration, subject to hold period until September 8, 2026.

Total gross proceeds from two recent notes now US$550,000 for general corporate purposes.

Company to file Form F-3 registration for resale of conversion and warrant shares.

Full analysis

IM Cannabis Corp. secured additional non-dilutive financing through a convertible note structure that avoids immediate cash repayment obligations, providing liquidity for operations amid its medical cannabis activities in Israel and Germany. The $300,000 principal note, issued at a 10% discount for $270,000 cash, includes 8% interest payable only via share conversion and comes with warrants covering 100% of principal at CAD$0.36, enhancing investor upside potential. This second tranche follows a similar $250,000 note, totaling $550,000 gross proceeds. Key investor protections include events of default triggering higher interest and conversion rights, while company safeguards limit remedies to equity issuance. The unregistered securities carry resale restrictions until September 2026, with planned F-3 filing to facilitate liquidity. Proceeds support working capital without debt reduction or redemptions, signaling focus on operational continuity.

IMCC · IM Cannabis Corp.

Summary

Key takeaways

Full analysis