Exhibit 99.1

FORM 7

MONTHLY PROGRESS REPORT
 
Name of Listed Issuer: IM Cannabis Corp. (the “Issuer” or “IMC”).
 
Trading Symbol: IMCC
 
Number of Outstanding Listed Securities as of 31/5/2022:
 
69,695,325 Common Shares
 
Date: June 7, 2022
 
Report on Business
 
1.
Provide a general overview and discussion of the development of the Issuer’s business and operations over the previous month. Where the Issuer was inactive disclose this fact.
 

 •
On May 12, 2022, the Issuer filed its interim financial statements and MD&A for the three months ended March 31, 2022, and provided a preliminary outlook for Q2 2022.
 

 •
On May 20, 2022, the Issuer filed its statement of executive compensation for the financial year ended December 31, 2021.
 
2.
Provide a general overview and discussion of the activities of management.
 
Management of the Issuer (“Management”) is focused on continuing the Issuer’s growth in all three markets in which it currently operates: Israel, Germany and Canada. Following the Issuer’s successful completion of strategic acquisitions in Canada and Israel, Management is focused on integrating and managing its international assets and supply chain in order to maximize company-wide revenue and margins, and continues to focus on its entry into the medical cannabis distribution and retail segments in Israel. Management also continues to identify and pursue new strategic investments and growth opportunities in Israel and Europe, including, but not limited to, securing additional supply, distribution and sale agreements in Germany through Adjupharm GmbH (“Adjupharm”) and in Israel through its subsidiaries and Focus Medical Herbs Ltd. (“Focus Medical”).
 
3.
Describe and provide details of any new products or services developed or offered. For resource companies, provide details of new drilling, exploration or production programs and acquisitions of any new properties and attach any mineral or oil and gas or other reports required under Ontario securities law.
 
Not Applicable.
 
 
4.
Describe and provide details of any products or services that were discontinued. For resource companies, provide details of any drilling, exploration or production programs that have been amended or abandoned.
 
Not Applicable.
 
5.
Describe any new business relationships entered into between the Issuer, the Issuer’s affiliates or third parties including contracts to supply products or services, joint venture agreements and licensing agreements etc. State whether the relationship is with a Related Person of the Issuer and provide details of the relationship.
 
Not Applicable.
 
6.
Describe the expiry or termination of any contracts or agreements between the Issuer, the Issuer’s affiliates or third parties or cancellation of any financing arrangements that have been previously announced.
 
The Issuer terminated an investor relations and public relations services agreement with Cohn & Wolfe. The termination will be effective July 9, 2022.
 
7.
Describe any acquisitions by the Issuer or dispositions of the Issuer’s assets that occurred during the preceding month. Provide details of the nature of the assets acquired or disposed of and provide details of the consideration paid or payable together with a schedule of payments if applicable, and of any valuation. State how the consideration was determined and whether the acquisition was from or the disposition was to a Related Person of the Issuer and provide details of the relationship.
 
Not Applicable.
 
8.
Describe the acquisition of new customers or loss of customers.
 
Not Applicable.
 
9.
Describe any new developments or effects on intangible products such as brand names, circulation lists, copyrights, franchises, licenses, patents, software, subscription lists and trade-marks.
 
Not Applicable.
 
10.
Report on any employee hirings, terminations or lay-offs with details of anticipated length of lay-offs.
 
In May 2022, the Issuer hired 26 employees and 14 resignations or terminations of employees occurred.
 
11.
Report on any labour disputes and resolutions of those disputes if applicable.
 
Not Applicable.
 
12.
Describe and provide details of legal proceedings to which the Issuer became a party, including the name of the court or agency, the date instituted, the principal parties to the proceedings, the nature of the claim, the amount claimed, if any, if the proceedings are being contested, and the present status of the proceedings.
 

 •
As previously disclosed in the Issuer’s April 2022 CSE Form 7, MYM Nutraceuticals Inc. (“MYM”) issued a “Notice of Event of Default and Acceleration” to Biome Grow Inc. and its subsidiary, Cultivator Catalyst Corp. (collectively, “Biome”) in relation to an outstanding loan receivable balance (the “Loan”) owing to MYM by Biome:
 

 o
On May 12, 2022, MYM applied to the Ontario Superior Court (the “Court”) for an interim order to, among other things, freeze the assets of Biome and its subsidiary and set a return date of May 26, 2022 (the “Return Date”), for the Court to hear its receivership application.
 

 o
The Court issued the form of order requested by MYM from the Court and rejected the form of order requested by Biome, thereby granting to MYM all of the elements of the order requested, including the forgoing.
 

 o
MYM and Biome have since entered into negotiations in regards to a settlement agreement for the repayment of the Loan and have notified the Court of their mutual agreement to adjourn the Return Date, pending the completion of a settlement agreement.
 

 •
As previously disclosed in the Issuer’s February 2022 CSE Form 7, a Statement of Claim was filed by the Issuer’s subsidiary, Adjupharm, against Stroakmont & Atton Trading GmbH on November 19, 2021. A hearing was held on May 27, 2022, and the court’s decision on the hearing is pending. To date, no further court hearings have been scheduled.
 
13.
Provide details of any indebtedness incurred or repaid by the Issuer together with the terms of such indebtedness.

Not Applicable.


14.
Provide details of any securities issued and options or warrants granted.
 
Security
Number Issued
Details of Issuance
Use of Proceeds(1)
Incentive Stock Options
N/A
N/A
N/A
Common Shares
N/A
N/A
N/A

(1)          State aggregate proceeds and intended allocation of proceeds.
 
Not Applicable.
 
15.
Provide details of any loans to or by Related Persons.
 
Not Applicable.
 
16.
Provide details of any changes in directors, officers or committee members.
 
Not Applicable.
 
17.
Discuss any trends which are likely to impact the Issuer including trends in the Issuer’s market(s) or political/regulatory trends.
 
The Issuer continues to focus on its acquisition strategy in Canada and Europe while enhancing organizational efficiency and the reduction of operating costs. The Issuer also continues to develop the IMC brand by increasing physician awareness and engagement to drive sales of IMC-branded medical cannabis products in Germany and by seeking new supply and sales agreements in Israel.
 
Global economies are currently experiencing elevated inflation which could curtail levels of economic activity, including in Issuer’s primary production markets. This inflation is predominantly driven by costs of goods as input costs continue to increase with the overall increase in costs caused by several external factors including but not limited to general uncertainties caused by the Ukraine war, the global supply chain constrictions and rising energy prices. As such, delivery and distribution costs, utility costs and other necessary supplies at an economic cost cannot be assured. These are integral requirements for the Issuer’s business and it is reasonable to expect that inflation, supply shortages or increases in demand could impact the Issuer’s future economic performance and competitiveness, as it may entail a meaningful increase in costs for various goods and services that the Issuer may not be able to pass onto patients or customers. In addition, the operations of the Issuer could be affected by the economic context should interest rates, inflation or unemployment levels reach levels that consumer trends and spending and, consequently, impact the sales and profitability of the Issuer.
 
The war in Ukraine may also have a material adverse effect on global economic activity and could result in volatility and disruption to global supply chains and the financial and capital markets. These disruptions could cause interruptions in supplies and other services from third parties upon which the Issuer relies; decrease demand for products; and cause staff shortages, reduced customer traffic, and increased government regulation, all of which may materially and negatively impact the business, financial condition and results of operations of the Issuer, its subsidiaries and Focus Medical.
 

The undersigned hereby certifies that:
 
1.
The undersigned is a director and/or senior officer of the Issuer and has been duly authorized by a resolution of the board of directors of the Issuer to sign this Certificate of Compliance.
 
2.
As of the date hereof there were no material information concerning the Issuer which has not been publicly disclosed.
 
3.
The undersigned hereby certifies to the Exchange that the Issuer is in compliance with the requirements of applicable securities legislation (as such term is defined in National Instrument 14-101) and all Exchange Requirements (as defined in CNSX Policy 1).
 
4.
All of the information in this Form 7 Monthly Progress Report is true.
 
Dated: June 7, 2022
 
 
Oren Shuster
  
 
Name of Director or Senior Officer
  
     
 
“Oren Shuster”
  

Signature
  
 


 
Chief Executive Officer
  

Official Capacity
  

Issuer Details
Name of Issuer
IM Cannabis Corp.
For Month End
May 2022
Date of Report
YY/MM/D
2022/06/07
Issuer Address
550 Burrard Street, Suite 2300, Bentall 5
City/Province/Postal Code
Vancouver, BC V6C 2B5
 
Issuer Fax No.
(     )
Issuer Telephone No.
+972 546687515
Contact Name
Yael Harrosh
 
Contact Position
Global Chief Legal and Operations Officer
Contact Telephone No.
+972 546687515
Contact Email Address
yael.h@imcannabis.com
Web Site Address
http://www.imcannabis.com/