IM Cannabis Corp. Convertible Note and Warrant Financing

IM Cannabis Corp. has entered into a Note Purchase Agreement with an institutional investor to issue a convertible note and a warrant. The convertible note amounts to US$225,000 and is convertible into the Company's common shares. The warrant allows the purchase of up to 77,855 common shares at an exercise price of CAD$4.63 per share. The financing closed on September 2, 2026, with net proceeds of US$202,500 intended for general corporate purposes. The convertible note bears an interest rate of 8.0% per annum, increasing to 14.0% upon an Event of Default, and is to be satisfied solely through the issuance of common shares upon conversion. The conversion price is the lower of a fixed price of US$3.328 or 90% of the daily volume-weighted average price over twenty consecutive trading days, with a floor price of US$0.665692. The warrant is exercisable for five years until September 2, 2031. The note includes customary limitations on conversion, such as a beneficial ownership cap of 4.99%. The company is obligated to reserve sufficient shares and file a resale registration statement. The company also announced this financing via a press release on September 2, 2026.