IM Cannabis Corp (IMCC) Announces Proposed Securities Offering

May 5, 2021 6:19 AM EDT

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IM Cannabis Corp. (NASDAQ: IMCC), a multi-country operator ("MCO") in the medical and adult-use recreational cannabis sector with operations in Israel, Germany and Canada, announces that it has commenced an overnight marketed offering (the "Offering") of the Company's common shares (each an "Offered Share") on a best-efforts agency basis. The Company may also issue to purchasers of Offered Shares, for no additional consideration, common share purchase warrants (each a "Warrant") that would entitle the holder to purchase common shares of the Company at a price and for a term to be determined in the context of marketing for the Offering.

In addition, the Company expects to grant the agents a 30-day option (the "Over-Allotment Option") to purchase additional Offered Shares and Warrants equal to up to 15% of the aggregate number of such securities to be sold in the Offering (excluding the Over-Allotment Option) on the same terms and conditions.

A.G.P./Alliance Global Partners and Roth Capital Partners have agreed to act as co-lead agents for the proposed Offering in connection with offers and sales in the United States and Roth Canada, ULC will act as the sole agent in Canada. The securities offered under the Offering will be issued and sold in the United States and in the provinces of British Columbia, Ontario and Alberta in Canada in accordance with applicable securities laws. The proposed Offering will be subject to customary conditions and there can be no assurance as to whether or when the proposed Offering may be completed, or as to the actual size or specific terms of the Offering.

The Company intends to use the net proceeds of the Offering for: (i) supporting growth initiatives in core markets of Israel, Germany and Canada; (ii) additional strategic mergers and acquisitions opportunities; and (iii) general working capital purposes.

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