IM Cannabis closes $1.2 million convertible note financing with institutional investor

IM Cannabis Corp. announced on November 4, 2026 that it completed a private placement with an existing institutional investor, totaling US$1,200,000 in gross proceeds through a convertible note financing.¹ The note was issued under a November Note Purchase Agreement dated November 4, 2026, carrying a principal amount of US$1,200,000 and an original issue discount of 15%.¹

The note accrues interest at 4% annually, rising to 14% if a default occurs, and gives the investor the right to convert all or part of the outstanding balance into common shares.¹ It matures 28 months after issuance, with repayment in 10 equal monthly installments starting after month 18.¹

The conversion price is set at the lower of a fixed US$0.610 per share or 85% of the lowest daily volume-weighted average price over the 20 trading days before conversion, subject to a floor of US$0.1449 per share.¹ The note carries a standard 4.99% beneficial ownership cap.¹

Alongside the note, the company issued the investor a warrant for up to 3,936,330 common shares at an exercise price of US$0.610 per share, exercisable immediately and expiring November 3, 2029.¹

Net proceeds from the offering totaled US$1,020,000, which the company plans to use for general corporate purposes.¹ IM Cannabis has also agreed to reserve enough shares to cover conversion and warrant exercise, and to file a resale registration statement on Form F-3 with the SEC.¹

Starting January 1, 2027, the company may request the investor purchase additional convertible notes of up to US$1,200,000 every three months, each paired with warrants on similar terms.¹

IM Cannabis operates a medical cannabis platform in Israel through subsidiaries that import and distribute cannabis to patients.¹