IM Cannabis Secures $500K Via Private Placement Lead By Oren Shuster And Rafael Gabay

IM Cannabis Corp. IMCC IMCC has closed the first tranche of its non-brokered private placement, of 400,000 units of the company at a price of $1.25 per unit for aggregate proceeds of $500,000. Each unit consists of one common share of the company and one common share purchase warrant. Each warrant entitles its holder to purchase one additional common share at an exercise price of $1.50 for a period of 36 months from the date of issue. Units in the listed issuer financing exemption offering first tranche were offered for sale to purchasers resident in Canada (except Quebec) and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under part 5A of National Instrument 45-106 – Prospectus exemptions, and will not be subject to any statutory hold period in accordance with applicable Canadian securities laws. The company may close additional tranches of the listed issuer financing exemption offering.

The company has also closed a non-brokered private placement of 1.16 million units on the same terms and at the same price as the listed issuer financing exemption offering for aggregate gross proceeds of $1.45 million. The concurrent offering was led by company insiders, including Oren Shuster, CEO and director of the company. The securities issued pursuant to the concurrent offering will be subject to a statutory hold period of four months and one day in accordance with applicable Canadian securities laws.

The company intends to use the net proceeds from each of the LIFE first tranche and the concurrent offering for general working capital purposes.

Insiders of the company, lead by Shuster and Rafael Gabay, a 10% holder of common shares, subscribed for 1.16 million units for aggregate proceeds of $1.45 million. As a result of the participation by insiders, the offering is considered a "related party transaction" pursuant to Multilateral Instrument 61-101 – Protection of minority security holders in special transactions.

Shuster, acquired an aggregate of 856,704 common shares in the capital of the company and 856,704 warrants.

Immediately prior to the acquisition, Shuster beneficially owned or controlled 1 million common shares, representing approximately 13.4% of the company's issued and outstanding common shares on a non-diluted basis. As a result of the acquisition, Shuster now beneficially owns or controls an aggregate of 1.87 million Common Shares, representing approximately 20.5% of the company's issued and outstanding common shares on a non-diluted basis.

Gabay, CEO, director and founder of IM Cannabis acquired an aggregate of 303,295 common shares in the capital of the company and 303,295 warrants

Immediately prior to the acquisition, Gabay beneficially owned or controlled 870,421 common shares, representing approximately 11.5% of the company's issued and outstanding common shares on a non-diluted basis. As a result of the acquisition, Gabay now beneficially owns or controls an aggregate of 1.17 million common shares, representing approximately 12.9% of the company's issued and outstanding common shares on a non-diluted basis.

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