IM Cannabis completes sale of IMC Holdings to Slil

• IM Cannabis completed the sale of IMC Holdings to Slil, with a previously paid C$3 million included as part of the consideration.
• The transaction allows IM Cannabis to retain its Israeli operations through a pre-closing reorganization.
• The company expects an approximately C$3 million improvement in shareholders’ equity based on unaudited pro forma analysis.

IM Cannabis (NASDAQ:IMCC) completed the sale of IMC Holdings to Slil, following a transaction that included a previously paid C$3 million payment as part of the consideration.

Before closing, IM Cannabis reorganized its structure to retain its Israeli operations, while IMC Holdings transferred to Slil.

IMC Holdings previously held interests in Adjupharm, Xinteza API, and Shiran.

IM Cannabis said remaining liabilities associated with IMC Holdings will continue as obligations of the entity under Slil’s ownership.

Under the agreement, those liabilities are capped at C$9.4 million, subject to mutual adjustments, while the cap excludes direct liabilities of the subsidiaries.

Based on unaudited pro forma analysis, IM Cannabis expects the transaction to improve shareholders’ equity by approximately C$3 million, although the final accounting impact may differ.

The company also expects improved working capital and reduced consolidated liabilities following the divestiture.

IM Cannabis said Slil is controlled by CEO Oren Shuster and that, due to serious financial difficulty, the company relied on exemptions from formal valuation and minority shareholder approval requirements.