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TORONTO and GLIL YAM, Israel - IM Cannabis Corp. (NASDAQ: IMCC) (CSE: IMCC), a medical cannabis company with operations in Israel and Germany, announced the results of its annual general and special meeting held on Friday, May 23, 2025. The company, currently trading at $1.91 and showing strong momentum with an 11% gain over the past week according to InvestingPro, has recently caught investors’ attention despite its modest market capitalization of $6.7 million. Shareholders voted in favor of all resolutions, including the election of directors, the reappointment of the auditor, and approval of new control persons and transactions.
The meeting saw 60 shareholders, representing 45.84% of the company’s issued and outstanding common shares, elect five directors and re-appoint Fahn Kanne & Co. Grant Thornton Israel as the auditor. Shareholders also approved Oren Shuster and Rafael Gabay as control persons, the completion of the Focus Transaction, and the adoption of a new equity incentive plan.
Concurrent with the meeting outcomes, the company closed the Focus Transaction on May 26, 2025, settling the purchase price through the issuance of common shares. The shares issued are subject to a four-month hold period and applicable U.S. securities laws.
Additionally, the company completed a secured debenture offering on the same day, raising C$2,301,174.70. The debentures, maturing on May 26, 2026, are convertible into common shares at a price of C$2.61 per share. Oren Shuster and Rafael Gabay, both insiders of the company, participated in the offering.
Following these transactions, Shuster and Gabay, along with Ewave—a privately-held entity they jointly own—increased their ownership in IM Cannabis. Shuster’s holdings now represent approximately 26.68% of the company’s common shares on a non-diluted basis, and Gabay’s holdings account for approximately 15.40%. InvestingPro data reveals the company’s challenging financial position, with a current ratio of 0.72 indicating potential liquidity constraints.
The company also noted that Shuster exercised pre-funded warrants, further increasing his stake in the company.
IM Cannabis, focusing on medical patients in Israel and Germany, has recently redirected its efforts from Canada to these markets, aiming for sustainable and profitable growth. Despite current challenges, including negative EBITDA of $1.97 million in the last twelve months, the company has demonstrated revenue growth of 12.7%. Discover comprehensive analysis and more exclusive insights about IMCC with InvestingPro’s detailed research report, part of their coverage of over 1,400 stocks.
This article is based on a press release statement from IM Cannabis Corp.
In other recent news, IM Cannabis Corp reported a 25% increase in Q4 2024 revenue compared to the same period the previous year, reaching €13.3 million. The company achieved a positive adjusted EBITDA of €500,000 in Q4, marking a significant improvement from a loss of €4.3 million in Q4 2023. Despite a net loss of €11.8 million for the year, IM Cannabis’s strategic focus on the German market resulted in a 183% surge in sales in the region, contributing to 40% of the company’s total revenue in the second half of 2024. Additionally, IM Cannabis is addressing a Nasdaq non-compliance issue related to its stockholders’ equity, which fell short of the required US$2.5 million. The company has until May 26, 2025, to submit a compliance plan. In a strategic move, IM Cannabis plans to acquire the remaining 26% interest in Focus Medical Herbs Ltd. from Ewave Group Ltd. This transaction, valued at NIS 818,740, will be settled by issuing common shares of IM Cannabis. The acquisition requires shareholder approval at the upcoming annual general and special meeting. These developments highlight IM Cannabis’s efforts to strengthen its market position and financial standing.
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