IMCC - IM Cannabis stock slumps 10% on offerings to raise up to $5.5M

IM Cannabis ( NASDAQ: IMCC ) said it is undertaking a non-brokered private placement of up to US$5.5M.

The company will offer a minimum of 400K units and a maximum of 2.96M units of at US$1.25 per unit for total gross proceeds of a minimum of US$500K and a maximum of US$3.7M which will be offered for sale to buyer resident in Canada (except Quebec) and/or other qualifying jurisdictions.

Each unit consists of one common share and one warrant to buy one additional share at an exercise price of US$1.50 for a period of 36 months from the date of issue.

The company said the listed issuer financing exemption offering will be led by its Executive Chairman Marc Lustig.

The offering is expected to be completed in multiple closings, with the first by Jan. 16, 2023 and the final no later than March 2.

Concurrent, IM is selling, on a non-brokered private placement basis, an additional 2M units on the same terms and same price for additional aggregate gross proceeds of US$2.5M.

The concurrent offering will be led by company insiders, including CEO and Director Oren Shuster.

This offering is expected to close on Jan. 16.

The total gross proceeds from the two offerings shall be up to US$5.5M.

IM plans to use the net proceeds for general working capital purposes.

IMCC -10% to $1.17 premarket Jan. 13

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