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.
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On February 7, 2023, the Issuer announced that it closed a fourth tranche of the LIFE Offering as part of its previously announced non-brokered private placement, of 760,450 Units issued for aggregate gross
proceeds of US$950,562.50. In addition, the Issuer closed the third tranche of the Concurrent Offering of 400,000 Units for aggregate gross proceeds of US$500,000. Both LIFE Offering and Concurrent Offering were first announced on January 13,
2023 and reported in January 2023 monthly report.
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On February 13, the Issuer provided an update on its previously announced transaction with Panaxia Pharmaceutical Industries Israel Ltd. and Panaxia Logistics Ltd., part of the Panaxia Labs Israel, Ltd. group of
companies, (collectively, "Panaxia" and “Panaxia Transaction”). The consideration payable by the Issuer under the Panaxia Transaction was NIS 18.7 million (approximately $7.2 million), comprised of $2,900,000 in cash, payable in two
instalments, and $4,300,000 in common shares, payable in five instalments. The Issuer issued four instalments as previously announced on August 9, 2021, September 8, 2021, October 20, 2021, and November 18, 2021, respectively.
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On February 16, 2023, the Issuer announced that it closed a fifth and final tranche of its previously announced non-brokered private placement. As part of the fifth tranche of the LIFE Offering the Issuer issued
505,798 Units for aggregate gross proceeds of US$632,247.50. In addition, a non-independent director of the Issuer subscribed for 29,548 Units at an aggregate subscription price of US$36,935. The director’s subscription price was satisfied by
the settlement of US$36,935 in debt owed by the Issuer to the director for certain consulting services previously rendered by the director to the Issuer.
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2. |
Provide a general overview and discussion of the activities of management.
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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.
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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.
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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.
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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.
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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.
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8. |
Describe the acquisition of new customers or loss of customers.
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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.
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10. |
Report on any employee hirings, terminations or lay-offs with details of anticipated length of lay-offs.
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11. |
Report on any labour disputes and resolutions of those disputes if applicable.
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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.
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13. |
Provide details of any indebtedness incurred or repaid by the Issuer together with the terms of such indebtedness.
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14. |
Provide details of any securities issued and options or warrants granted.
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Security
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Number Issued
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Details of Issuance
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Use of Proceeds(1)
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Common Shares
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1,695,796
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Issued as part of the LIFE Offering and the Concurrent Offering, as discussed in Section 1.
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Aggregate proceeds of US$2,082,810 (2). Used for general working capital purposes.
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Warrants
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1,695,796
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Issued as part of the LIFE Offering and the Concurrent Offering, as discussed in Section 1.
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Each Warrant entitles its holder to purchase one Common Share at an exercise price of US$1.50 for a period of 36 months from the date of issue
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(1) |
State aggregate proceeds and intended allocation of proceeds.
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(2) |
Such amount exclusive of US$36,935 for 29,548 Units issued to a director of the Issuer, satisfied by a settlement of US$36,935 in debt owed by the Issuer to the director.
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15. |
Provide details of any loans to or by Related Persons.
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16. |
Provide details of any changes in directors, officers or committee members.
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17. |
Discuss any trends which are likely to impact the Issuer including trends in the Issuer’s market(s) or political/regulatory trends.
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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.
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2. |
As of the date hereof there were no material information concerning the Issuer which has not been publicly disclosed.
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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).
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4. |
All of the information in this Form 7 Monthly Progress Report is true.
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Oren Shuster
Name of Director or Senior Officer
“Oren Shuster” Signature Chief Executive Officer
Official Capacity |
Issuer Details
Name of Issuer
IM Cannabis Corp.
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For Month End
February 2023
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Date of Report
YY/MM/D
2023/3/7
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Issuer Address
550 Burrard Street, Suite 2300, Bentall 5
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City/Province/Postal Code
Vancouver, BC V6C 2B5
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Issuer Fax No.
( )
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Issuer Telephone No.
+972 546687515
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Contact Name
Yael Harrosh
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Contact Position
Global Chief Legal and Operations Officer
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Contact Telephone No.
+972 546687515
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Contact Email Address
yael.h@imcannabis.com
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Web Site Address
http://www.imcannabis.com/
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