IM Cannabis closes US$1.2 million convertible note financing
IM Cannabis closed a US$1,200,000 convertible note private placement with an existing institutional investor, with net proceeds designated for general corporate purposes.
Key takeaways
The financing closed on November 4, 2026 under a note purchase agreement with an existing institutional investor.
The November Note has a US$1,200,000 principal amount and a 15% original issuance discount.
The November Note bears interest at 4% per annum, increasing to 14% upon the occurrence and continuation of an event of default.
The November Note matures 28 months after issuance and is repayable in 10 equal monthly instalments beginning after the 18th month.
At the Investor's option, the note may be converted into common shares at 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.
The Investor received warrants for up to 3,936,330 common shares at an exercise price of US$0.610 per share; the warrants were immediately exercisable and expire on November 3, 2029.
Beginning January 1, 2027, IM Cannabis may request the purchase of up to US$1,200,000 of additional convertible notes in each three-month period, with accompanying warrants, on substantially the same terms.
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Primary source
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