IM Cannabis prices US$250,000 convertible note private placement with institutional investor

IM Cannabis closed a US$250,000 private placement convertible note financing with an institutional investor, issued under an August 6 note purchase agreement.

• The note was issued with a 10% original issue discount.
• It carries 8% annual interest, rising to 14% on an event of default.
• The obligations are not repayable in cash and are to be satisfied solely through the issuance of common shares upon conversion.
• The conversion price is set at US$0.12 or 90% of the lowest 20-day VWAP, subject to a US$0.02 floor.
• The note includes a 4.99% beneficial ownership cap.

The company also issued warrants for 2,052,545 shares at C$0.17 per share. The warrants are exercisable immediately and expire on Aug. 7, 2031.