IM Cannabis Closes Convertible Debenture Offering to Support Accelerated Growth in Germany

Core Viewpoint - IM Cannabis Corp. is focusing on cost management and financial restructuring to support growth in Germany following recent legalization, having reduced its annual G&A costs by 49% in 2023 and planning to lower financial costs through debt renegotiation [1][3]. Financial Developments - The company closed a non-brokered private placement of secured convertible debentures, raising a total of $2,091,977, aimed at preserving cash for growth initiatives in Germany [2]. - The debentures will mature on May 26, 2025, and will not incur interest unless there is a default, with a conversion price set at $0.85 per share [2]. Insider Transactions - Oren Shuster, CEO of IM Cannabis, subscribed for $237,214 of debentures in the offering, which is classified as a related party transaction [4]. - The company intends to rely on exemptions from formal valuation and minority shareholder approval requirements due to the transaction's value being below 25% of the company's market capitalization [4]. Shareholder Information - Following the acquisition of the debenture, Oren Shuster's total holdings include 1,872,870 shares, 856,704 warrants, 131,250 stock options, and the debenture, representing approximately 1.8% of the company's issued shares on a non-diluted basis and 23.44% on a partially diluted basis [6]. Company Overview - IM Cannabis Corp. is a leading medical cannabis company operating in Israel and Germany, focusing on premium cannabis products for medical patients [10]. - The company has exited operations in Canada to concentrate resources on achieving sustainable growth in its highest value markets, Israel and Germany [10][11].