IM Cannabis closes $1.31M share offering, citing financial hardship

IM Cannabis Corp. (Nasdaq: IMCC) has closed a registered direct offering of 655,000 common shares at $2.00 per share, raising $1.31 million in gross proceeds before expenses, according to a press release from the medical cannabis company.

The company said it intends to use the net proceeds for working capital and general corporate purposes, which may include evaluating potential additional business opportunities.

The offering included a related party transaction: Invest-Pro - Shukai Hon Ltd., a company of which Eli Zamir, a director of IM Cannabis, is also a director, purchased 164,585 shares at $2.00 per share for a total of $329,170. The transaction was classified as a related party transaction under Multilateral Instrument 61-101.

The company invoked financial hardship exemptions to bypass formal valuation and minority shareholder approval requirements under MI 61-101. The board of directors, including at least two-thirds of independent directors, determined that the company was in serious financial difficulty, that the offering was designed to improve its financial position, and that the terms were reasonable under the circumstances. Zamir abstained from voting on resolutions related to Invest-Pro's participation.

The offering was made under a shelf registration statement on Form F-3 declared effective by the Securities and Exchange Commission on July 9, 2025.

IM Cannabis operates a medical cannabis platform in Israel and Germany. The company previously announced on August 17, 2026, an agreement to sell I.M.C. Holdings Ltd., a transaction that is expected to result in the company retaining its Israeli operations while its German operations, conducted through Adjupharm GmbH, would pass to the purchaser.

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