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 8, 2023, the Issuer announced that it has closed the previously announced securities for debt settlement transaction (the "Debt Settlement") with L5
Capital. Pursuant to the Debt Settlement, the Company settled outstanding indebtedness of $838,776 (approximately US$615,615) through issuing 492,492 units (the "Units") at a price of US$1.25 per Unit. Each Unit consists of one common share
of the Company (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant"). Each Warrant entitles L5 Capital to purchase one additional Common Share at an exercise price of US$1.50 per Common Share for a period of 36
months from the date of issuance.
|
• |
On May 15, 2023, the Issuer filed its interim financial statements and MD&A for the three months ended March 31, 2023, and announced its unaudited
financial results for Q1 2023.
|
• |
On May 19, 2023, the Issuer filed its statement of executive compensation for the financial year ended December 31, 2022.
|
2. |
Provide a general overview and discussion of the activities of management.
|
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.
|
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.
|
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.
|
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.
|
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.
|
8. |
Describe the acquisition of new customers or loss of customers.
|
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.
|
10. |
Report on any employee hirings, terminations or lay-offs with details of anticipated length of lay-offs.
|
11. |
Report on any labour disputes and resolutions of those disputes if 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.
|
13. |
Provide details of any indebtedness incurred or repaid by the Issuer together with the terms of such indebtedness.
|
14. |
Provide details of any securities issued and options or warrants granted.
|
Security
|
Number Issued
|
Details of Issuance
|
Use of Proceeds(1)
|
Common Shares
|
492,492
|
Issued as part of the Debt Settlement, as discussed in Section 1.
|
Aggregate outstanding
indebtedness of $838,776 (approximately US$615,615) through
issuing 492,492 units at a price of US$1.25 per Unit. Each Unit consists of one common share of the Company.
|
Warrants
|
492,492
|
Issued as part of the Debt Settlement, as discussed in Section 1.
|
Each Warrant entitles L5 Capital to purchase one additional Common Share at an exercise price of US$1.50 for a period
of 36 months from the date of issue.
|
Incentive Stock Options
|
3,000
|
Each incentive stock option, granted on May 16, 2023, is exercisable for one common share at an exercise price of
$1.10 for a period of five years from the grant date.
|
N/A
|
Restricted Stock Units ("RSU")
|
50,414
|
Pursuant to section 2.01(c) of the
Consulting Agreement between the Company and L5 Capital dated December 29, 2020 (the
"Consulting Agreement"), L5 Capital was entitled to 50,414 shares as a result of RUS’s who vested according to the agreed vesting schedule.
|
N/A
|
15. |
Provide details of any loans to or by Related Persons.
|
16. |
Provide details of any changes in directors, officers or committee members.
|
17. |
Discuss any trends which are likely to impact the Issuer including trends in the Issuer’s market(s) or political/regulatory trends.
|
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.
|
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 2023
|
Date of Report
YY/MM/D
2023/6/6
|
Issuer Address
550 Burrard Street, Suite 2300, Bentall 5
|
||
City/Province/Postal Code
Vancouver, BC V6C 2B5
|
Issuer Fax No.
( )
|
Issuer Telephone No.
+972 542815033
|
Contact Name
Michal Lebovitz Nissimov
|
Contact Position
General Counsel
|
Contact Telephone No.
+972 542815033
|
Contact Email Address
Michal.l@imcannabis.com
|
Web Site Address
http://www.imcannabis.com/
|