Monitor for conversion notices and the required F-3 registration statement; the variable conversion price with a floor at $0.0303 could result in massive dilution if the stock trades near that level. The company's going-concern status and reliance on this financing suggest continued distress.
Price Chart
Executive Summary
IM Cannabis Corp. (IMCC) closed a $225k convertible note financing with a 10% OID, netting $202.5k in cash. The note carries an 8% interest rate (14% upon default) and is convertible at the lower of $0.152 or 90% of the 20-day VWAP (floor $0.0303). The company also issued warrants for 1,483,386 common shares at C$0.22. This highly dilutive financing underscores the company's distressed condition, following a going-concern warning in its recent 20-F.
Key Facts
- Convertible note principal: $225,000, issued at 90% (net proceeds $202,500)
- Conversion price: lower of $0.152 fixed or 90% of 20-day VWAP, floor $0.0303
- Interest: 8% per annum (14% upon event of default), payable only in common shares
- Warrant coverage: 100% – 1,483,386 warrants at C$0.22, 5-year term
- No cash redemption; all obligations satisfied solely through share issuance
- Beneficial ownership cap of 4.99% on conversion
Financial Impact
Up to 1,483,386 common shares from the warrant alone, plus unlimited conversion shares at deeply discounted variable price; potential dilution relative to ~$1M market cap could exceed 50%.
Risk Factors
- Going concern risk highlighted in prior 20-F
- Severe dilution from conversion at low stock prices
- No cash repayment option; note forces equity issuance
- Potential Nasdaq delisting if share price stays low
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001178913-26-003389 |
| Exhibit: exhibit_4-2.htm | 0001178913-26-003389 |
| Exhibit: exhibit_4-1.htm | 0001178913-26-003389 |
| Exhibit: exhibit_99-1.htm | 0001178913-26-003389 |
| Document: zk2635630.htm | 0001178913-26-003389 |
| Document: 0001178913-26-003389-index-headers.html | 0001178913-26-003389 |
| Document: 0001178913-26-003389-index.html | 0001178913-26-003389 |
| Document: 0001178913-26-003389.txt | 0001178913-26-003389 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | EFFECT | $1.19 | awaiting T+20 | — | $0.8780 (−26.22%) |
Oct 2, 2026 24d ago | 6-K | $1.94 | awaiting T+20 | — | $0.8780 (−54.74%) |
Sep 25, 2026 4w ago | 6-K | $2.48 $0.8400 | ▲ +66.13% | ▲ +66.10% | $0.8780 (+64.60%) |
Sep 24, 2026 4w ago | 424B5 | $3.18 $0.9250 | ▲ +70.91% | ▲ +70.49% | $0.8780 (+72.39%) |
Sep 24, 2026 4w ago | 6-K | $3.18 $0.9250 | ▲ +70.91% | ▲ +70.49% | $0.8780 (+72.39%) |
Sep 23, 2026 4w ago | 6-K | $2.91 $1.19 | ▼ −59.11% | ▼ −59.79% | $0.8780 (−69.83%) |
Aug 17, 2026 10w ago | 6-K | $0.1050 $0.0543 | ▼ −48.25% | ▼ −46.28% | $0.8780 (+736.19%) |
Aug 13, 2026 10w ago | Press Release | $3.66 $1.72 | ▲ +53.01% | ▲ +51.01% | $0.8780 (+76.01%) |
Aug 13, 2026 10w ago | 6-K | $3.66 $1.72 | ▲ +53.01% | ▲ +51.01% | $0.8780 (+76.01%) |
Jul 27, 2026 13w ago | 6-K | $0.1088 $0.1088 | · 0.00% | ▼ −3.38% | $0.8780 (+706.99%) |
US Market Status
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