TORONTO and GLIL YAM,
Israel, Jan. 31, 2024 /PRNewswire/ -- IM Cannabis
Corp. (CSE: IMCC) (NASDAQ: IMCC) (the "Company,"
"IMCannabis," or "IMC"), a leading medical cannabis
company with operations in Israel
and Germany, announced today that
it has received a 180 calendar day extension, until July 29,
2024, from the Nasdaq Stock Market ("Nasdaq"), to regain
compliance with Nasdaq Marketplace Rule 5550(a)(2) (the "Bid
Price Rule").
The Bid Price Rule stipulates that the bid price of the
Company's common stock must close at $1.00 per share or
more for a minimum of 10 consecutive business days. On August
1, 2023, the Company received notice from Nasdaq that based on the
previous 30 consecutive business days, the Company's listed
security no longer met the minimum $1.00 bid price per
share requirement. Therefore, in accordance with the Bid Price
Rule, the Company was provided 180 calendar days, or until
January 29, 2024, to regain
compliance. The listed security has not regained compliance with
the minimum $1 bid price per share
requirement. However, Nasdaq's Staff has determined that the
Company is eligible for an additional 180 calendar day
period,[1] or until July 29,
2024, to regain compliance.[2]
The Company will continue to monitor the closing bid price of
its common stock and plans to pursue available options to regain
compliance with the Bid Price Rule, including potentially pursuing
a reverse stock split. If the Company authorizes a reverse stock
split, it will plan to effectuate the split no later than ten
business days prior to the end of the extension in order to regain
compliance.
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis
company that provides premium cannabis products to medical patients
in Israel and Germany, two of the largest medical cannabis
markets. The Company has recently exited operations in Canada to pivot its focus and resources to
achieve sustainable and profitable growth in its highest value
markets, Israel and Germany. The Company leverages a transnational
ecosystem powered by a unique data-driven approach and a globally
sourced product supply chain. With an unwavering commitment to
responsible growth and compliance with the strictest regulatory
environments, the Company strives to amplify its commercial and
brand power to become a global high-quality cannabis player.
The IMC ecosystem operates in Israel through its commercial relationship
with Focus Medical Herbs Ltd., which imports and distributes
cannabis to medical patients, leveraging years of proprietary data
and patient insights. The Company also operates medical cannabis
retail pharmacies, online platforms, distribution centers, and
logistical hubs in Israel that
enable the safe delivery and quality control of IMC products
throughout the entire value chain. In Germany, the IMC ecosystem operates through
Adjupharm GmbH, where it distributes cannabis to pharmacies for
medical cannabis patients. Until recently, the Company also
actively operated in Canada
through Trichome Financial Corp and its wholly owned subsidiaries,
where it cultivated, processed, packaged, and sold premium and
ultra-premium cannabis at its own facilities under the WAGNERS and
Highland Grow brands for the adult-use market in Canada. The Company has exited operations in
Canada and considers these
operations discontinued.
Disclaimer for Forward-Looking Statements
This press release contains forward-looking information or
forward-looking statements under applicable Canadian and U.S.
securities laws (collectively, "forward-looking statements"). All
information that addresses activities or developments that we
expect to occur in the future are forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as "seek", "anticipate", "believe", "plan",
"estimate", "expect", "likely" and "intend" and statements that an
event or result "may", "will", "should", "could" or "might" occur
or be achieved and other similar expressions. Forward-looking
statements are based on the estimates and opinions of management on
the date the statements are made. In the press release, such
forward-looking statements include, but are not limited to,
statements relating to statements relating to compliance with
Nasdaq's continued listing requirements, and timing and effect
thereof and the potential for an extension to regain compliance;
Company leaving the Canadian cannabis market to focus on
Israel, Germany and Europe.
The above lists of forward-looking statements and assumptions
are not exhaustive. Since forward-looking statements address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results may differ materially from
those currently anticipated or implied by such forward-looking
statements due to a number of factors and risks. These include: any
failure of the Company to maintain "de facto" control over Focus
Medical in accordance with IFRS 10; the failure of the Company
to comply with applicable regulatory requirements in a highly
regulated industry; unexpected changes in governmental policies and
regulations in the jurisdictions in which the Company operates; the
Company's ability to continue to meet the listing requirements of
the Canadian Securities Exchange and the NASDAQ Capital Market; any
unexpected failure to maintain in good standing or renew its
licenses; the ability of the Company and Focus Medical
(collectively, the "Group") to deliver on their sales commitments
or growth objectives; the reliance of the Group on third-party
supply agreements to provide sufficient quantities of medical
cannabis to fulfil the Group's obligations; the Group's possible
exposure to liability, the perceived level of risk related thereto,
and the anticipated results of any litigation or other similar
disputes or legal proceedings involving the Group; the impact of
increasing competition; any lack of merger and acquisition
opportunities; adverse market conditions; the inherent uncertainty
of production quantities, qualities and cost estimates and the
potential for unexpected costs and expenses; risks of product
liability and other safety-related liability from the usage of the
Group's cannabis products; supply chain constraints; reliance on
key personnel; the risk of defaulting on existing debt and war,
conflict and civil unrest in Eastern
Europe and the Middle
East.
Any forward-looking statement included in this press release is
made as of the date of this press release and is based on the
beliefs, estimates, expectations and opinions of management on the
date such forward-looking information is made. The Company does not
undertake any obligation to update forward-looking statements
except as required by applicable securities laws. Investors should
not place undue reliance on forward-looking statements.
Forward-looking statements contained in this press release are
expressly qualified by this cautionary statement.
1. Listing Rule 5810(c)(3)(A).
2. This second 180 day period relates exclusively to the
bid price deficiency. The Company may be delisted during the 180
days for failure to maintain compliance with any other listing
requirements for which it is currently on notice or which occurs
during this period.
Logo:
https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg
Company contacts:
Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
a.taranko@imcannabis.de
Oren Shuster, CEO
IM Cannabis Corp.
info@imcannabis.com
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