IM Cannabis Raises $1.31 Million in Direct Stock Offering
IM Cannabis Corp. has closed a $1.31 million registered direct offering, selling 655,000 common shares at $2.00 each to accredited investors. The company plans to use the capital to bolster its working capital and support general corporate operations as it navigates ongoing financial challenges.
The offering included a significant participation from Invest-Pro, a company associated with IM Cannabis director Eli Zamir, who purchased 164,585 shares for approximately $329,170. Because this transaction involved a related party, the company invoked financial hardship exemptions under Multilateral Instrument 61-101 to bypass requirements for a formal valuation and minority shareholder approval. The decision was backed by the board and independent directors, who determined that the capital injection was necessary given the firm's current liquidity position and debt obligations.
IM Cannabis, which operates medical cannabis platforms in Israel and Germany, stated that it expedited the process to address immediate financial pressures. The company is currently in the midst of a transition, having previously announced an agreement to sell I.M.C. Holdings Ltd. while moving to retain its core Israeli operations. Proceeds from this latest sale are earmarked for stabilizing operations and evaluating potential new business opportunities.
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