IM Cannabis Corp. locks in US$225,000 convertible note, fast‑tracking its growth engine in Toronto and Glil Yam, Israel. The Toronto‑based cannabis firm sealed the private placement with an institutional investor on September 2, 2025, clearing the way for expanded operations and shareholder returns.
IM Cannabis Corp. Secures $225,000 Convertible Note
IM Cannabis Corp. said the net proceeds will fund general corporate purposes, covering product development, market expansion and working capital. The financing strengthens its balance sheet as it pursues aggressive growth targets.
The lender received a note with a US$225,000 principal, a 10% original issuance discount, and an 8% annual interest rate that rises to 14% upon an event of default. Repayment is not made in cash; instead, the company will satisfy its obligation by issuing common shares upon conversion.
Conversion occurs at the lower of a fixed US$3.328 per share or 90% of the 20‑day volume‑weighted average price, with a floor of US$0.665692. A 4.99% beneficial ownership cap limits the noteholder’s equity stake.
Alongside the note, IM Cannabis issued a warrant to buy 77,855 shares at C$4.63 each. The warrant became exercisable immediately and expires on September 2, 2031, five years after issuance.
The firm committed to reserve enough shares for conversion and warrant exercise, and it will file a Form F‑3 resale registration with the U.S. SEC, aiming for effectiveness within the agreed timeframe.
All securities are subject to a four‑month‑one‑day hold period and standard legends under the U.S Securities Act. The private placement relies on Section 4(a)(2) of the Securities Act and corresponding Canadian exemptions, meaning the shares cannot be offered in the U.S. or Canada without a registration or applicable exemption.
