IM Cannabis Corp. IMCC IMCC provided an update on its transaction with Panaxia Pharmaceutical Industries Israel Ltd. and Panaxia Logistics Ltd., part of the Panaxia Labs Israel, Ltd. group of companies, (collectively, "Panaxia"). Under the transaction terms, the company purchased the home-delivery services and an online retail footprint operating under the name "Panaxia-to-the-Home" in Israel, which includes a customer service center, an Israeli medical cannabis distribution with IMC-GDP license, and an online related business together with associated intellectual property.
The consideration payable by the company under the Panaxia transaction was CA$7.2 million ($5.3 million), comprised of CA$2.9 million in cash, payable in two installments, and $4.3 million in common shares, payable in five installments. To date, the company preformed four installments.
The Panaxia transaction included a further option to acquire, for no additional consideration, a pharmacy, including requisite licenses to dispense and sell medical cannabis to patients.
The company and Panaxia have reached an agreement to terminate the Panaxia pharmacy option. In consideration for the termination of the Panaxia pharmacy option, the company will not be required to make the fifth installment of $261,814 of common shares owed by the company to Panaxia under the Panaxia transaction and will receive an agreed compensation amount of $94,632 from Panaxia to be paid by Panaxia in services and cannabis inflorescence in accordance with the terms as agreed by the parties.
Price Action
IM Cannabis shares were trading 4.8% higher at $1.069 per share at the time of writing Monday morning.
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