IM Cannabis closes US$1.2 million convertible note financing
IM Cannabis closed a US$1.2 million private placement of a convertible promissory note and warrant with L.I.A. Pure Capital Ltd., receiving US$1.02 million of net proceeds for general corporate purposes.
Key takeaways
Financing: IM Cannabis issued a US$1,200,000 convertible promissory note with a 15% original issuance discount and a warrant to purchase up to 3,936,330 common shares.
Proceeds: The company received US$1,020,000 of net proceeds and intends to use them for general corporate purposes.
Note terms: The note bears 4.0% annual interest, increasing to 14.0% during an event of default, and matures 28 months after issuance, subject to extension at the holder's option.
Repayment: Principal and accrued interest are repayable in 10 equal monthly installments beginning after the 18th month, although the note states that early repayments generally require holder consent.
Conversion terms: The conversion price is the lower of US$0.610 per share or 85% of the lowest daily VWAP during the preceding 20 trading days, subject to a US$0.1449 floor and a 4.99% beneficial ownership cap.
Warrant terms: The warrant became immediately exercisable on November 4, 2026, has a US$0.610 exercise price, expires on November 3, 2029, and includes anti-dilution and ratchet provisions.
Additional financing: Beginning January 1, 2027, IM Cannabis may request that the investor purchase additional convertible notes of up to US$1,200,000 in each three-month period, with accompanying warrants on substantially the same terms.
Key metrics
Primary source
TickerStar generated this brief from an official company, investor-relations, earnings-call, or regulatory source. Review the primary material before making an investment decision.
Open SEC filingFollow IMCC in real time
Get material earnings, filing, IR, and earnings-call alerts by email.