IM Cannabis Secures US$225K Convertible Note at 8% Interest with 1.48M Warrants
IMCC•IM Cannabis Corp. closed US$225,000 convertible note financing with an 8% coupon rising to 14% on default and a 10% issuance discount. The note converts at US$0.152 or 90% of the 20-day VWAP (floor US$0.0303) and includes 1.48 million share warrants at C$0.22 exercisable through July 2031.
1. Convertible Note Financing Terms
IM Cannabis Corp. issued a US$225,000 convertible note with a 10% original issuance discount and an 8% annual interest rate, rising to 14% upon an event of default. The note converts solely into common shares at the lower of US$0.152 per share or 90% of the lowest 20-day volume-weighted average price, subject to a US$0.0303 floor and a 4.99% beneficial ownership cap.
2. Warrant Features
In conjunction with the note, the company granted a warrant to purchase 1,483,386 common shares at C$0.22 per share. These warrants became immediately exercisable on July 1, 2026 and will expire on July 1, 2031.
3. Share Reservation and Use of Proceeds
IM Cannabis will reserve sufficient common shares for note conversion and warrant exercise, file a resale registration statement on Form F-3 with the SEC, and use commercially reasonable efforts to secure its effectiveness. Net proceeds are earmarked for general corporate purposes, and all issued securities carry a four-month and one-day hold period plus applicable legends.
