IM Cannabis amends warrants and files resale registration statement

IM Cannabis Corp. (NASDAQ: IMCC) announced warrant amendments and the filing of a Form F-3 resale registration statement with the Securities and Exchange Commission.

The company agreed with holders of warrants issued in November 2024 to reduce the exercise price from C$4.32 to C$3.43 per warrant and extend the expiration date from November 12, 2026 to July 31, 2030.

The resale registration statement covers 4,982,517 common shares, including 1,202,000 common shares, 848,000 shares issuable upon exercise of pre-funded warrants, 2,050,000 shares from warrant exercises, 140,000 shares from finder's warrants, and 742,517 shares from the November 2024 warrants.

Three company insiders participated in the warrant amendments. Director and officer Oren Shuster holds 194,110 warrants, director Shmulik Arbel holds 48,349 warrants, and insider Rafael Gabay holds 194,088 warrants. The transaction constituted a related party transaction under Canadian regulations but qualified for exemptions from formal valuation and minority shareholder approval requirements.

Following the amendments, Shuster and his joint actor Ewave Group Ltd. own approximately 17.12% of outstanding common shares on a non-diluted basis and 21.83% on a partially diluted basis. Gabay and his joint actor own approximately 9.88% on a non-diluted basis and 15.48% on a partially diluted basis.

The registration statement has been filed but is not yet effective. IM Cannabis will not receive proceeds from any securities sales by shareholders under the registration statement.

IM Cannabis operates medical cannabis businesses in Israel and Germany.

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