IM Cannabis raises $4.1 million in private placement offering

TORONTO/GLIL YAM - IM Cannabis Corp. (NASDAQ:IMCC), currently valued at $10.6 million in market capitalization, has closed a private placement offering that raised approximately $4.1 million in gross proceeds, the medical cannabis company announced Thursday. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.

The company issued 2,050,000 units priced at C$2.7427 each, generating C$5,622,522 (approximately $4.1 million) based on the July 21 exchange rate published by the Bank of Israel.

Each unit consists of one common share or one pre-funded common share purchase warrant, plus one common share purchase warrant. The warrants are exercisable at C$3.43 per share for 60 months, while pre-funded warrants can be exercised at C$0.00001 per share.

Pure Equity Ltd. acted as a consultant to the offering. Securities issued are subject to a four-month hold period under Canadian securities laws, with additional restrictions potentially applying in other jurisdictions.

The company has committed to filing a resale registration statement within 30 days of the July 30 closing date to allow investors to resell their shares. IM Cannabis plans to use the proceeds for general working capital, debt repayment, and corporate purposes.

IM Cannabis operates in Israel and Germany, providing premium cannabis products to medical patients. In Israel, the company imports and distributes cannabis through subsidiaries that include retail pharmacies, online platforms, and distribution centers. Its German operations are conducted through Adjupharm GmbH, which distributes cannabis to pharmacies serving medical patients.

The offering was made under an exemption from registration requirements of the U.S. Securities Act, according to the company’s press release statement.

In other recent news, IM Cannabis Corp. has secured a $1 million loan as part of a potential $2 million financing agreement with L.I.A. Pure Capital Ltd. This loan carries an 8% annual interest rate and is to be repaid by June 30, 2026, with a second tranche possibly available by September 4. The company also received an extension from Nasdaq to meet the stockholders’ equity requirement, with a new deadline set for October 6 to comply with the minimum $2.5 million threshold for continued listing. Additionally, IM Cannabis announced its intention to voluntarily delist from the Canadian Securities Exchange, aiming to centralize its market presence on the Nasdaq. This decision is driven by the potential benefits of a single listing, such as improved liquidity and shareholder value. At the recent annual general meeting, shareholders endorsed all key proposals, including the election of directors and the reappointment of the auditor. They also approved new control persons and transactions, highlighting support for the company’s strategic direction. Furthermore, Oz Adler has been appointed to the board of directors, adding to the company’s leadership team.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.