IM Cannabis to Cut C$10.5M Debt via European Asset Sale
IMCC•IM Cannabis has signed a non-binding letter of intent to sell its European assets to Slil.com Holding Ltd, reducing its debt by C$10.5 million. The company will retain its Israeli operations and anticipates improved working capital, enhanced cash flow and stronger balance sheet upon closing.
1. Non-binding Letter of Intent
IM Cannabis Corp has entered a non-binding letter of intent to sell its wholly owned subsidiary IMC Holdings—including Adjupharm GmbH in Germany and interests in Xinteza API Ltd and Shiran Societe Anonyme—to Slil.com Holding Ltd, an entity controlled by CEO Oren Shuster. The transaction focuses on divesting European operations while preserving the company’s core Israeli units such as Focus Medical Herbs Ltd and Rosen High Way Ltd.
2. Debt Reduction and Financial Impact
In exchange for all issued and outstanding shares of IMC Holdings, Slil will assume approximately C$10.5 million of IM Cannabis’ debt, comprising C$7.5 million in retained liabilities and C$3 million in short-term obligations. This transfer is expected to strengthen working capital, improve cash flow and enhance long-term balance sheet resilience for IM Cannabis.
3. Related-Party Transaction and Governance
The sale constitutes a related-party transaction under MI 61-101, requiring minority shareholder approval and a formal valuation unless exemptions are applied. IM Cannabis plans to rely on financial hardship exemptions, supported by determinations from an independent special committee of the board and a fairness assessment by Beta Finance T.Y.S Ltd.
4. Next Steps and Conditions
Completion of the deal depends on negotiating and executing a definitive agreement, receiving special committee approval, securing any required regulatory clearances and satisfying customary closing conditions within the exclusivity period specified in the letter of intent.
