Loan & DebtJun 3, 2026, 04:33 PM
IM Cannabis Raises US$225,000 in Convertible Note Financing
AI Summary
IM Cannabis Corp. announced the closing of a US$225,000 convertible note financing with an institutional investor. The company issued a convertible note with a 10% original issuance discount, resulting in net proceeds of US$202,500, which will be used for general corporate purposes. Additionally, a warrant to purchase up to 781,250 common shares was issued, exercisable at CAD$0.40 per share for five years.
Key Highlights
- IM Cannabis Corp. raised US$225,000 in gross proceeds through a convertible note financing.
- The company issued a convertible note with a principal amount of US$225,000 and a 10% original issuance discount.
- Net proceeds of US$202,500 will be used for general corporate purposes.
- The note bears an 8% annual interest rate, increasing to 14% upon an event of default.
- Conversion price is the lower of US$0.288 fixed price or 90% of VWAP, with a floor of US$0.0576.
- A warrant to purchase up to 781,250 common shares was issued, exercisable at CAD$0.40 per share.
- The warrant is exercisable immediately and expires on June 3, 2031.
Price Impact
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