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TORONTO/GLIL YAM - IM Cannabis Corp. (NASDAQ:IMCC), currently trading at $2.65 with a market capitalization of $15.91 million, has modified terms for common share purchase warrants issued in November 2024, reducing the exercise price from C$4.32 to C$3.43 and extending the expiration date from November 2026 to July 2030, according to a press release statement. InvestingPro analysis indicates the stock is currently undervalued, despite showing strong returns of over 17% in the past six months.
The medical cannabis company, which operates in Israel and Germany, also filed a resale registration statement on Form F-3 with the Securities and Exchange Commission. The filing covers nearly 5 million common shares, including those issuable upon exercise of various warrants. According to InvestingPro data, the company has demonstrated revenue growth of 12.68% in the last twelve months, though it remains unprofitable during this period.
The registration statement has been filed but has not yet become effective, meaning the securities cannot be sold until SEC approval. The company will not receive proceeds from any sales by the selling shareholders.
The warrant amendments constitute a related party transaction as company insiders participated, including CEO Oren Shuster, director Shmulik Arbel, and insider Rafael Gabay. Shuster holds 194,110 warrants, Arbel holds 48,349, and Gabay holds 194,088.
The company relied on exemptions from formal valuation and minority shareholder approval requirements, as the fair market value involved did not exceed 25% of the company’s market capitalization. Independent board members approved the transaction.
Early warning reports will be filed by Shuster and Gabay regarding their holdings. Shuster, along with joint actor Ewave Group Ltd., controls approximately 17.12% of outstanding common shares on a non-diluted basis. Gabay, also with Ewave Group Ltd., controls approximately 9.88% on the same basis.
IM Cannabis describes itself as providing premium cannabis products to medical patients in Israel and Germany through a data-driven approach and globally sourced product supply chain. For deeper insights into IMCC’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, visit InvestingPro, where you’ll find detailed research reports and expert financial metrics.
In other recent news, IM Cannabis Corp. has completed a private placement offering, raising approximately $4.1 million in gross proceeds. The company issued 2,050,000 units priced at C$2.7427 each, translating to about $4.1 million based on the exchange rate at the time. Additionally, IM Cannabis has secured a $1 million loan from L.I.A. Pure Capital Ltd., with a potential second tranche of the same amount contingent on certain conditions. The company has also announced its intention to voluntarily delist from the Canadian Securities Exchange, aiming to centralize its market presence by maintaining its NASDAQ listing only. This decision comes as IM Cannabis evaluates potential transactions that might be hindered by dual listings. Furthermore, IM Cannabis received an extension from Nasdaq to meet the minimum stockholders’ equity requirement by October 6. The company also held its annual general and special meeting, where shareholders endorsed all resolutions, including director elections and the reappointment of its auditor. Lastly, Oz Adler has been appointed to the board of directors, marking another significant development for the company.
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