IM Cannabis Announces Warrant Amendments and F-3 Registration Filing

IM Cannabis has amended its November 2024 Warrants, reducing the exercise price to C$3.43 and extending the expiration date to July 31, 2030. The company has also filed a Form F-3 Resale Registration Statement covering 4,982,517 common shares. Insiders, including CEO Oren Shuster, are involved in the related party transaction. The changes are aimed at making the warrants more attractive to holders and increasing trading liquidity.

IM Cannabis Corp. (NASDAQ: IMCC), a leading medical cannabis company with operations in Israel and Germany, has announced significant amendments to its November 2024 Warrants and filed a Form F-3 Resale Registration Statement. The changes aim to enhance the attractiveness of the warrants and increase trading liquidity.

The company has reduced the exercise price of each November 2024 Warrant from C$4.32 to C$3.43 and extended the expiration date from November 12, 2026 to July 31, 2030 [1]. Additionally, IM Cannabis has filed a Resale Registration Statement on Form F-3 with the Securities and Exchange Commission (SEC), registering an aggregate of 4,982,517 Common Shares [1].

The Resale Registration Statement covers various types of shares, including those issuable upon the exercise of Pre-Funded Warrants, Warrants, Finder's Warrants, and November 2024 Warrants. These shares may not be sold or offers to buy them accepted prior to the SEC's effectiveness of the registration statement. If effective, selling shareholders may use the prospectus to resell their securities, but the company will not receive any proceeds from these sales [1].

The amendments and registration filing involve insiders, including CEO Oren Shuster, who participated as holders of November 2024 Warrants. The participation of these insiders constitutes a related party transaction, which required exemptions from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101 [1].

The changes are expected to make the warrants more attractive to holders, potentially increasing their likelihood of exercise and enhancing trading liquidity. The company has also indicated that it will evaluate its investment in the future and may adjust its shareholdings based on market conditions and other circumstances [1].

References:
[1] https://www.prnewswire.com/news-releases/im-cannabis-announces-warrant-amendments-and-form-f-3-resale-registration-statement-filing-302529199.html