IM Cannabis Sheds European Assets to Stabilize Balance Sheet

The divestiture follows a pre-closing reorganization that allowed the firm to retain its core Israeli medical cannabis operations. By offloading IMC Holdings, the company sheds the liabilities associated with its European subsidiaries, including Adjupharm GmbH and Xinteza API Ltd. The deal was structured as a related-party transaction, with the company citing financial hardship to bypass standard minority approval requirements after an independent special committee reviewed the terms.

Management expects the move to improve working capital and clarify the company's financial position as it shifts focus entirely to the Israeli market. While the C$3 million equity boost remains an unaudited projection, the firm confirmed that Slil.com Holding Ltd. had already provided a C$3 million advance payment as part of the acquisition agreement. The company continues to navigate significant financial pressure, utilizing the sale to manage a debt burden that previously saw liabilities capped at C$9.4 million for the transferred assets.