IM Cannabis Corporation Announces Management-Led Offering

IM Cannabis Corporation Unveils Exciting New Offering

IM Cannabis Corp. (NASDAQ: IMCC), a prominent name in the medical cannabis sector, has revealed its plans for a substantial private placement offering, positioning itself for further growth and stability within the thriving cannabis market. This initiative aims to raise up to US$1,613,000, a strategic move led by the company’s proficient management team.

Details of the Private Placement

The offering will involve the sale of approximately 625,000 units, with each unit comprising one common share and one share purchase warrant. The price per unit will be determined based on the 10-day volume weighted average price of the shares on the Canadian Securities Exchange preceding the offering. This unique approach ensures that the offering price is reflective of current market conditions, providing value to both the company and its investors.

Leadership Involvement

Taking the helm of this offering are none other than Oren Shuster, Chief Executive Officer, and Shmulik Arbel, a board director. Their expertise and commitment to the company’s vision are invaluable assets as IM Cannabis embarks on this endeavor. By leading the offering, the management team aims to solidify investor confidence and demonstrate their commitment to the company’s future.

Use of Proceeds

Funds from the offering are earmarked for the repayment of loans to A.D.I. CAR ALARMS & STEREO SYSTEMS Ltd. This strategic financial decision highlights IM Cannabis’s proactive approach to managing its debts and streamlining its financial obligations.

Recent Financial Developments

Since late 2022, IM Cannabis has secured significant borrowing, exceeding US$8,000,000, ensuring it has the necessary capital to thrive in a highly competitive industry. Furthermore, the company values the importance of settling outstanding debts responsibly, which is crucial for maintaining its fiscal health.

Stock Options Overview

In a notable management decision, IM Cannabis has recently cancelled over 32,305 options previously granted to various board members and consultants, stating that these options no longer provided a realistic incentive. Furthermore, the company has cancelled 142,784 warrants held by CEO Oren Shuster to streamline its executive compensation structure and align incentives with shareholder expectations.

New Options Grants

To balance the cancelled options, IM Cannabis also approved the issuance of new options. These newly granted options will have an exercise price set significantly above current market values, ensuring they provide a meaningful incentive for achievement and performance over the coming years.

Related Party Transactions and Compliance

As part of these transactions, both Mr. Shuster and Mr. Arbel are recognized as related parties, thereby complying with regulatory requirements under Multilateral Instrument 61-101. The anticipated transaction alignments are projected to be exempt from formal valuation because they will not exceed 25% of the company’s market capitalization.

Company Overview

IM Cannabis Corp. specializes in providing high-quality cannabis products to medical patients, focusing primarily on the lucrative markets in Israel and Germany. Having recently exited Canadian operations, the company is solidifying its position as a leader in medical cannabis within these key markets. Its strategic vision emphasizes leveraging a sophisticated data-driven approach and a robust global supply chain.

The company operates efficiently within Israel through subsidiaries that import and distribute medical cannabis. IM Cannabis emphasizes quality control and stringent regulatory compliance, ensuring its products reach patients effectively and safely.

Frequently Asked Questions

What is the purpose of the private placement offering by IM Cannabis?

The offering aims to raise funds for repaying loans and strengthening the company’s financial position as it navigates the competitive cannabis industry.

Who is leading the private placement offering?

The offering is led by Oren Shuster, the CEO, alongside Shmulik Arbel, a director of the company, showcasing strong management involvement.

How are the proceeds from the offering intended to be used?

Proceeds will primarily be utilized to repay a loan, helping to streamline IM Cannabis's financial obligations and boost its capital base.

What changes have been made to options granted to executives?

IM Cannabis has cancelled previous options that were no longer seen as motivating and granted new options with an exercise price above current market pricing.

In which markets is IM Cannabis focusing its operations?

IM Cannabis is focusing its operations primarily in Israel and Germany, aiming for sustainable growth in these robust medical cannabis markets.

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