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TORONTO/GLIL YAM - IM Cannabis Corp. (NASDAQ:IMCC), whose stock has surged over 67% in the past year according to InvestingPro data, has received $1 million as the first tranche of a potential $2 million loan and appointed Oz Adler to its board of directors, the medical cannabis company announced Wednesday.
The loan from L.I.A. Pure Capital Ltd. carries an 8% annual interest rate plus VAT and must be repaid by June 30, 2026. A second $1 million tranche may be provided by September 4, subject to conditions including the registration of a pledge and publication of a prospectus for capital raising with Aegis Capital Corp. as underwriter. The financing comes as InvestingPro data shows the company’s current ratio at 0.72, indicating short-term obligations exceed liquid assets.
The loan is secured by a pledge over 100% of the issued shares of IMC Holdings Ltd., a wholly owned subsidiary. The pledge was registered on July 7.
Under the agreement, IM Cannabis committed to raising at least $3 million within 60 days through an underwritten offering with Aegis Capital. If the company raises $4 million or more, the lender will not be obligated to provide the second loan tranche. A $5 million raise would allow the lender to require loan repayment within 45 business days of written notice.
Adler, who currently serves as CEO of SciSparc Ltd. and sits on the boards of several publicly traded companies including Rail Vision Ltd. and Clearmind Medicine Inc., was appointed to the board effective July 6. His appointment was made pursuant to terms of the loan agreement, which gives the lender the right to recommend a director.
"Mr. Adler’s extensive experience in capital markets, corporate finance, and pharmaceutical ventures will be invaluable as we execute our strategic roadmap," said Oren Shuster, CEO of IM Cannabis, in the press release statement.
IM Cannabis operates in Israel and Germany, providing cannabis products to medical patients in both markets. The company generated revenue of $37.85 million in the last twelve months, with a 12.7% growth rate. InvestingPro offers additional insights through its comprehensive Pro Research Report, one of 1,400+ available reports that provide deep-dive analysis of leading stocks.
In other recent news, IM Cannabis Corp. has been granted an extension by Nasdaq to meet the minimum stockholders’ equity requirement of $2.5 million, with a new deadline set for October 6. This follows a notification received in April about their non-compliance, as their reported equity was $2,184,722 as of December 31, 2024. The company is also planning to voluntarily delist its shares from the Canadian Securities Exchange (CSE) to focus on a single listing on Nasdaq, which they believe will streamline operations and potentially enhance liquidity and shareholder value. Shareholders recently endorsed several key proposals, including the election of directors and approval of new control persons, during the annual general meeting. Concurrently, IM Cannabis completed the Focus Transaction, acquiring the remaining 26% interest in Focus Medical Herbs Ltd. from Ewave Group Ltd. through the issuance of common shares. Additionally, a secured debenture offering raised C$2,301,174.70, with debentures convertible into common shares. Insiders Oren Shuster and Rafael Gabay increased their ownership stakes through participation in the offering and the exercise of pre-funded warrants. Despite facing compliance challenges, IM Cannabis remains committed to maintaining its Nasdaq listing and continuing its operations in Israel and Germany.
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