IM Cannabis Sells European Operations, Strengthens Balance Sheet

IM Cannabis Corp. announced on September 29, 2026, the closing of its previously announced sale of I.M.C. Holdings Ltd. to Slil.com Holding Ltd. This transaction is expected to enhance the company's financial position and streamline its corporate structure, enabling a focus on its Israeli medical cannabis business.

The sale involves the divestiture of European subsidiaries, including those holding interests in Adjupharm GmbH, Xinteza API Ltd., and Shiran Societe Anonyme. Prior to the sale, IM Cannabis transferred its Israeli operations out of IMC Holdings, retaining them within the main company. The consideration for the transaction included a C$3 million advance payment and Slil's assumption of liabilities within IMC Holdings, capped at C$9.4 million.

The company anticipates the sale will result in an approximate C$3 million improvement in shareholders' equity and working capital. IM Cannabis intends to allocate its resources towards its retained Israeli medical cannabis operations and explore further opportunities in this sector.

The transaction was classified as a related party transaction, as Slil.com Holding Ltd. is beneficially owned by IM Cannabis CEO Oren Shuster. The company utilized exemptions from certain regulatory requirements, citing severe financial difficulties and the transaction's role in improving its financial standing. An independent committee of the board reviewed and recommended the transaction's approval.