IM Cannabis Corp. filed a Form 6-K with the U.S. Securities and Exchange Commission on November 4, 2026, disclosing a Securities Purchase Agreement with an institutional investor involving a convertible promissory note and a warrant to purchase common shares.

Key Highlights

  • Principal Amount: The company issued a convertible promissory note in the principal amount of US$1,200,000, carrying an original issuance discount of 15%.
  • Net Proceeds: The company received US$1,020,000 in net proceeds, which it disclosed it intends to use for general corporate purposes.
  • Warrant Coverage: A warrant to purchase up to 3,936,330 common shares was issued, exercisable at US$0.610 per share for three years until November 3, 2029.
  • Interest Rate: The note bears interest at 4.0% per annum, increasing to 14.0% upon an Event of Default.
  • Conversion Price: The conversion price is the lower of a Fixed Price of US$0.610 or 85% of the lowest daily volume-weighted average price over the 20 consecutive trading days preceding conversion, subject to a Floor Price of US$0.1449.
  • Beneficial Ownership Cap: Conversion is subject to a 4.99% beneficial ownership cap of outstanding common shares after giving effect to such conversion.
  • Registration Obligation: The company agreed to file a resale registration statement on Form F-3 within 30 trading days after the November 4, 2026 closing date.

IM Cannabis Closes Convertible Note Financing With Institutional Investor

According to the filing, IM Cannabis Corp. (NASDAQ:IMCC) entered into a Securities Purchase Agreement on November 4, 2026, the same date the offering closed. Under the agreement, the company issued a convertible promissory note with a principal amount of US$1,200,000 at an original issuance discount of 15%, resulting in net proceeds of US$1,020,000. The company disclosed it intends to apply those proceeds to general corporate purposes.

The note, as described in the filing, accrues interest at 4.0% per annum from the closing date. If an Event of Default occurs, the rate increases to 14.0%. The investor holds the option to convert all or part of the outstanding balance into common shares on one or more occasions. The conversion price is determined as the lower of the Fixed Price of US$0.610 or 85% of the lowest daily volume-weighted average price of common shares during the 20 consecutive trading days immediately preceding the conversion date, with a Floor Price of US$0.1449. The filing notes that no fractional common shares will be issued, with any fractional amount rounded down to the nearest whole share.

Alongside the note, the company issued a warrant entitling the holder to purchase up to 3,936,330 common shares at US$0.610 per share. The warrant became exercisable immediately upon issuance on November 4, 2026, and expires on November 3, 2029. The filing states the warrant includes "certain anti-dilution and ratchet adjustment provisions." The company also committed to reserving sufficient common shares for issuance upon conversion and to file a resale registration statement on Form F-3 within 30 trading days of closing. The filing contains forward-looking statements, which the company identifies as subject to risks and its own cautionary language.

What Was Disclosed

IM Cannabis Corp. disclosed a convertible note financing closed November 4, 2026, involving a US$1,200,000 principal note with a 15% original issuance discount, US$1,020,000 in net proceeds, and a warrant covering 3,936,330 common shares at US$0.610 per share, exercisable through November 3, 2029.