IM Cannabis Provides Corporate Updates
IM Cannabis Corp. (NASDAQ: IMCC) has received a notification from Nasdaq on April 9, 2025, indicating non-compliance with the minimum stockholders' equity requirement of US$2.5 million for continued listing. The company reported stockholders' equity of US$2,184,722, falling short of the requirement. IMCC has 45 days until May 26, 2025, to submit a compliance plan and may receive up to 180 days to regain compliance.
Additionally, the company announced plans to acquire the remaining 26% interest in Focus Medical Herbs through its subsidiary IMC Holdings. The purchase price was determined by an independent third party to be NIS 818,740, to be settled through the issuance of common shares. The transaction requires disinterested shareholders' approval at the upcoming annual general meeting on May 23, 2025.
IM Cannabis Corp. (NASDAQ: IMCC) ha ricevuto una notifica da Nasdaq il 9 aprile 2025, che indica la non conformità con il requisito minimo di patrimonio netto degli azionisti di 2,5 milioni di dollari per il mantenimento della quotazione. L'azienda ha riportato un patrimonio netto degli azionisti di 2.184.722 dollari, al di sotto del requisito. IMCC ha 45 giorni, fino al 26 maggio 2025, per presentare un piano di conformità e potrebbe ricevere fino a 180 giorni per ripristinare la conformità.
Inoltre, l'azienda ha annunciato piani per acquisire il restante 26% di interesse in Focus Medical Herbs tramite la sua controllata IMC Holdings. Il prezzo di acquisto è stato determinato da una terza parte indipendente in 818.740 NIS, da saldare tramite l'emissione di azioni ordinarie. La transazione richiede l'approvazione degli azionisti non interessati nella prossima assemblea generale annuale del 23 maggio 2025.
IM Cannabis Corp. (NASDAQ: IMCC) ha recibido una notificación de Nasdaq el 9 de abril de 2025, indicando la falta de cumplimiento con el requisito mínimo de capital de los accionistas de 2.5 millones de dólares para continuar con la cotización. La compañía reportó un capital de los accionistas de 2,184,722 dólares, por debajo del requisito. IMCC tiene 45 días, hasta el 26 de mayo de 2025, para presentar un plan de cumplimiento y puede recibir hasta 180 días para recuperar el cumplimiento.
Además, la compañía anunció planes para adquirir el 26% restante de interés en Focus Medical Herbs a través de su subsidiaria IMC Holdings. El precio de compra fue determinado por una tercera parte independiente en 818,740 NIS, que se liquidará mediante la emisión de acciones ordinarias. La transacción requiere la aprobación de los accionistas no interesados en la próxima reunión general anual el 23 de mayo de 2025.
IM Cannabis Corp. (NASDAQ: IMCC)는 2025년 4월 9일 Nasdaq으로부터 최소 주주 자본 요건인 250만 달러를 충족하지 못했다는 통지를 받았습니다. 회사는 주주 자본이 2,184,722달러로, 요건에 미치지 못했습니다. IMCC는 2025년 5월 26일까지 45일 이내에 준수 계획을 제출해야 하며, 준수를 회복하기 위해 최대 180일을 받을 수 있습니다.
또한, 회사는 자회사 IMC Holdings를 통해 Focus Medical Herbs의 나머지 26% 지분을 인수할 계획을 발표했습니다. 매입 가격은 독립적인 제3자가 818,740 NIS로 결정했으며, 보통주 발행을 통해 정산될 예정입니다. 이 거래는 2025년 5월 23일 예정된 연례 총회에서 이해관계가 없는 주주들의 승인을 필요로 합니다.
IM Cannabis Corp. (NASDAQ: IMCC) a reçu une notification de Nasdaq le 9 avril 2025, indiquant un non-respect de l'exigence minimale de capitaux propres des actionnaires de 2,5 millions de dollars pour le maintien de la cotation. La société a déclaré des capitaux propres de 2 184 722 dollars, en dessous de l'exigence. IMCC dispose de 45 jours, jusqu'au 26 mai 2025, pour soumettre un plan de conformité et peut bénéficier de jusqu'à 180 jours pour retrouver la conformité.
De plus, la société a annoncé son intention d'acquérir les 26% restants d'intérêt dans Focus Medical Herbs par l'intermédiaire de sa filiale IMC Holdings. Le prix d'achat a été déterminé par une tierce partie indépendante à 818 740 NIS, qui sera réglé par l'émission d'actions ordinaires. La transaction nécessite l'approbation des actionnaires non intéressés lors de la prochaine assemblée générale annuelle le 23 mai 2025.
IM Cannabis Corp. (NASDAQ: IMCC) hat am 9. April 2025 eine Mitteilung von Nasdaq erhalten, die auf die Nichterfüllung der Mindestanforderung an das Eigenkapital der Aktionäre von 2,5 Millionen US-Dollar für eine Fortführung der Notierung hinweist. Das Unternehmen berichtete von einem Eigenkapital der Aktionäre in Höhe von 2.184.722 US-Dollar, was unter der Anforderung liegt. IMCC hat 45 Tage Zeit bis zum 26. Mai 2025, um einen Compliance-Plan einzureichen und kann bis zu 180 Tage Zeit erhalten, um die Konformität wiederherzustellen.
Darüber hinaus kündigte das Unternehmen Pläne an, die verbleibenden 26% an Focus Medical Herbs über seine Tochtergesellschaft IMC Holdings zu erwerben. Der Kaufpreis wurde von einer unabhängigen dritten Partei auf 818.740 NIS festgelegt und wird durch die Ausgabe von Stammaktien beglichen. Die Transaktion erfordert die Genehmigung der nicht interessierten Aktionäre auf der bevorstehenden Hauptversammlung am 23. Mai 2025.
- Potential consolidation of ownership through acquisition of remaining 26% stake in Focus Medical Herbs
- Company maintains Nasdaq listing during compliance period
- Independent third-party valuation ensures fair pricing for Focus Medical acquisition
- Company fails to meet Nasdaq's minimum stockholders' equity requirement of US$2.5 million
- Risk of potential Nasdaq delisting if compliance plan is not accepted or executed successfully
- Company does not meet alternative Nasdaq listing requirements for market value or net income
Insights
The Nasdaq non-compliance notice represents a significant concern for IM Cannabis investors. With stockholders' equity of
This capital deficiency signals underlying financial weakness that could affect IM Cannabis' operations beyond just its listing status. While management indicates they're exploring compliance options, the notification comes amid what appears to be constrained financial resources, as evidenced by their decision to preserve cash by settling the Focus Medical acquisition with common shares rather than cash.
The acquisition of the remaining
Focus Medical's business evolution is noteworthy - having transitioned from cannabis cultivation to exclusively importation activities in 2022, which likely changed its value proposition and operational profile. This transaction consolidates IM Cannabis' control over this import-focused subsidiary but comes at a time when capital preservation appears paramount.
Nasdaq Notification Letter
The Company has received a written notification (the "Notification Letter") from the Nasdaq Stock Market LLC ("Nasdaq") dated April 9, 2025, notifying the Company that it is no longer in compliance with Nasdaq Listing Rule 5550(b)(1).
Nasdaq Listing Rule 5550(b)(1) (the "Listing Rule") requires companies listed on the Nasdaq Capital Market to maintain a minimum of
The Notification Letter has no immediate effect on the Company's listing on the Nasdaq Capital Market at this time, subject to the Company's compliance with other Nasdaq listing requirements. In accordance with Nasdaq Listing Rule 5810(c)(2)(A), the Company has been provided 45 calendar days, or until May 26, 2025, to submit a plan to regain compliance. If such compliance plan is accepted by Nasdaq, the Company may be granted an extension of up to 180 calendar days from the date of the Notification Letter to evidence compliance.
The Company's business operations are not affected by the receipt of the Notification Letter. The Company is looking into various options available to regain compliance and maintain its continued listing on the Nasdaq Capital Market. The Company intends to submit the compliance plan as soon as practicable. Although the Company will use all reasonable efforts to achieve compliance, there can be no assurance that the Company will be able to regain compliance pursuant to the Notification letter, or that the Company will otherwise be in compliance with other Nasdaq listing criteria.
The Notification Letter has no immediate impact on the listing of the Company's common shares, which will continue to be listed and traded on The Nasdaq Capital Market during this period, subject to the Company's compliance with other listing standards.
Purchase of remaining
Through a series of transactions, the Company, through I.M.C. Holdings Ltd. ("IMC Holdings"), a wholly owned subsidiary of the Company, acquired a
The Board commissioned an arm's length independent third-party to prepare a report to determine the purchase price of the remaining
The Company plans to seek approval to complete the Focus Transaction from disinterested shareholders at its upcoming annual general and special meeting schedule for May 23, 2025 (the "Meeting").
Background of the Focus Transaction
On February 3, 2010, Focus, a private company operating in the
Originally, Focus was owned by Messrs. Shuster and Gabay, who collectively held
On November 29, 2017, Ewave and Mr. Tregerman entered into a loan agreement (the "Focus Loan Agreement") pursuant to which Mr. Tregerman received a loan in the amount of
On March 18, 2018, Messrs. Shuster and Gabay sold their combined holdings, representing
Due to regulatory constraints, on April 2, 2019, an agreement was reached between IMC Holdings and Messrs. Shuster and Gabay, pursuant to which IMC Holdings sold its shares in Focus back to Messrs. Shuster and Gabay for a total consideration of
On November 30, 2023, IMC Holdings requested approval from IMCA to exercise the Focus Option and on February 26, 2024, IMCA approved IMC Holdings' acquisition of the Focus Shares.
On February 26, 2024, Ewave exercised its option under the Focus Loan Agreement to acquire Mr. Tregerman
The Focus Transaction constitutes a "related party transaction", as such term is defined in Multilateral Instrument 61-101 – Protection of Minority Shareholders in Special Transactions ("MI 61-101"), due to the involvement of Ewave, a privately-held entity jointly owned by Messrs. Shuster and Gabay, related parties to the Company, and as such requires the Company to receive minority Shareholder approval for, and obtain a formal valuation for the subject matter of, the transaction in accordance with MI 61-101, prior to the completion of such transaction, unless the Company is able to rely on exemptions from the formal valuation and minority Shareholder approval requirements of MI 61-101.
Notwithstanding the fact that the Focus Transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the subject matter of the transaction, nor the consideration payable under the transaction, exceeds
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in
The IMC ecosystem operates in
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements under applicable Canadian and
Forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to: the Company's ability to regain compliance with Nasdaq's continued listing requirements, and timing and effect thereof; the Company's ability to submit a compliance plan in response to the Notification Letter; the Company will be able to use all reasonable efforts to achieve compliance with Nasdaq's continued listing requirements; the Company's seeking approval to complete the Focus Transaction from disinterested shareholders at its upcoming Meeting; and the Company completing the Focus Transaction.
The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward-looking statements due to a number of factors and risks. These include: the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the Company's inability to continue to meet the listing requirements of the CSE and the Nasdaq Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and Focus (collectively, the "Group") to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group's obligations;the Group's possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group's cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt; risks surrounding war, conflict and civil unrest in
Company Contact:
Oren Shuster, CEO
IM Cannabis Corp.
+972-77-3603504
info@imcannabis.com
[1] The Company reported stockholders' equity of
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SOURCE IM Cannabis Corp.
FAQ
What is the deadline for IM Cannabis (IMCC) to submit its Nasdaq compliance plan?
How much stockholders' equity does IMCC need to maintain Nasdaq listing?
What is the purchase price for the remaining 26% stake in Focus Medical Herbs?
When will IMCC shareholders vote on the Focus Medical Herbs acquisition?
