Medical cannabis company with operations in Israel and Germany, IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC), intends to undertake a non-brokered private placement offering of up to $1,613,000 through the sale of roughly 625,000 units.
What Happened: Each unit will be comprised of one share and one share purchase warrant, with each warrant entitling the holder to acquire one additional share at a price equal to a 50% premium to the offering price before the second anniversary of the closing date.
The company plans to close the offering in one or more tranches. It will be led by the company’s management team, including Oren Shuster, CEO and chairman of the board of directors and Shmulik Arbel, a director of the company.
Why It Matters: The company intends to use the proceeds from the offering for the repayment of a loan to A.D.I. CAR ALARMS & STEREO SYSTEMS Ltd. provided to the company’s subsidiary IMC Holdings Ltd. on Oct. 11, 2022.
What's Next: The closing of the offering is expected to occur by Nov. 11, 2024.
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Recent Moves
The company announced a major share consolidation plan in July. Its board of directors approved a consolidation of its issued and outstanding common shares under which every six pre-consolidated common shares will convert into one post-consolidated share.
The strategic decision reduced its outstanding shares from 13,394,136 to 2,232,357, making the stock more attractive to institutional investors and improving liquidity.
Read Also: IM Cannabis Shares Surge 586% After 6:1 Consolidation: What Investors Need To Know
The company's second quarter financial results reported in August revealed a 12% year-over-year increase in revenue to CA$14.8 million ($10.8 million) in the second quarter of 2023. The company also reported a 129% year-over-year increase in IMC German sales to CA$3.5 million, making up 24% of the entire company revenue.
The company reported on Wednesday the preliminary sales results in Germany by its subsidiary operating in the country, Adjupharm GmbH, for the third quarter of 2024. The results have significantly exceeded expectations, the medical cannabis company with operations in Israel and Germany said, reporting a 50% increase in revenue compared to the previous quarter.
IMCC's shares were trading 3.15% higher at $2.2899 per share at the time of the writing on Friday.
Read Next:
- IM Cannabis Soars: German Sales Surge 200% In First 3 Months Post-Legalization, Q2 Revenue Up 12% YoY
