IM Cannabis Secures $225,000 via Convertible Note Financing

The financing consists of a note carrying an 8% annual interest rate, which escalates to 14% should the company default. Under the terms, the debt is not repayable in cash. Instead, the lender will convert the principal into common shares at a price determined by the lesser of a fixed $3.328 rate or 90% of the lowest daily volume-weighted average price over the 20 trading days prior to conversion, subject to a floor of roughly $0.67.

Alongside the note, the investor received warrants to purchase up to 77,855 common shares at an exercise price of C$4.63. These warrants are exercisable immediately and remain valid until September 2, 2031. IM Cannabis intends to direct the net proceeds toward general corporate expenses while committing to reserve sufficient shares to cover potential conversions and warrant exercises. The company has also pledged to file a resale registration statement with the U.S. Securities and Exchange Commission to facilitate the liquidity of these securities, which are currently subject to standard four-month hold periods.