IM Cannabis Raises US$550,000 via Two Convertible Notes with 1.4M Warrants
IM Cannabis Corp raised US$550,000 via two convertible notes, issuing a US$250,000 note convertible at US$0.339 per share with 272,861 C$0.47 warrants, and a US$300,000 note convertible at US$0.266 per share with 1,127,820 C$0.36 warrants. Both notes accrue 8% interest rising to 14% on default and include 4.99% ownership caps.
1. Financing Overview
On May 7, 2026, IM Cannabis Corp completed two private placements of convertible notes raising gross proceeds of US$550,000, comprising a US$250,000 note dated April 6 and a US$300,000 note dated May 7.
2. Note Terms and Warrants
Each note carries an original issuance discount of 10%, accrues 8% annual interest rising to 14% on default, and converts into common shares at the lower of fixed prices (US$0.339 for the First Note, US$0.266 for the Second) or 90% of the 20-day VWAP, subject to respective floor prices; the financings include a 4.99% beneficial ownership cap and issued warrants for 272,861 and 1,127,820 shares at exercise prices of C$0.47 and C$0.36.
3. Use of Proceeds and Registration
The net proceeds will support general corporate purposes, with the company reserving sufficient shares for conversions and warrant exercises, and filing resale registration statements to facilitate resale following four-month hold periods.