IM Cannabis Raises US$225,000 with 10%-Discount Convertible Note and Warrants
IMCC•IM Cannabis Corp raised US$225,000 via a June 3 convertible note with a 10% discount, 8% interest (14% on default) and conversion at US$0.288 or 90% of the lowest 20-day VWAP (floor US$0.0576). Warrants cover 781,250 shares at C$0.40 exercisable for five years, with proceeds for general corporate use.
1. Financing Structure
IM Cannabis closed a US$225,000 private placement on June 3, issuing a convertible note with a 10% original issuance discount. The note bears 8% annual interest, rising to 14% upon default, and converts into common shares at US$0.288 per share or 90% of the lowest 20-day VWAP, subject to a US$0.0576 floor.
2. Warrant Details
The company also issued warrants covering 781,250 common shares at an exercise price of C$0.40 per share. These warrants became immediately exercisable upon issuance and will expire on June 3, 2031.
3. Use of Proceeds and Share Reservation
Proceeds from the financing are designated for general corporate purposes, enhancing the company’s cash position. IM Cannabis agreed to reserve sufficient common shares for note conversion and warrant exercise, and to file a resale registration statement on Form F-3 for U.S. issuances.
4. Terms and Conditions
All securities are subject to a four-month hold period and applicable legends under U.S. and Canadian securities laws. The private placement relied on exemptions from registration, restricting resale to transactions under valid registration statements or applicable securities law exemptions.
