IM Cannabis will focus on Israeli, German and European growth; Begins to exit the Canadian cannabis market

The company will focus its efforts and resources on growing Israel and Germanywith the main objective of achieving profitability in 2023

Trichome Financial Corp. and certain of its subsidiaries have obtained protection from creditors under the Companies’ Creditors Arrangement Act (“CCAA”)

GLILYAM, Israel, November 7, 2022 /PRNewswire/ — IM Cannabis Corp. (“BMI“or the”Company“) (NASDAQ: IMCC) (CSE: IMCC), an international adult medical and recreational cannabis company, announces, effective today, that it is beginning to withdraw from the Canadian cannabis market for focus its resources on finding growth opportunities in Israel, Germany and Europe.

IM_Cannabis_Logo

With this move, the company is targeting a lean organization with the primary goal of achieving profitability in 2023. IMC will continue to build on growing demand and positive momentum in Israelfueled by strategic alliances with premium Canadian suppliers and a highly skilled sourcing team, to solidify its leadership position in Israel and advance a long-term growth plan in Germany. In the Company’s view, the strong supply infrastructure of Israelpowered by advanced product knowledge and regulatory expertise, will be a key competitive advantage in Germany, especially during the legalization of recreational cannabis. This is based on the premise that the German and Israeli markets share a number of common attributes such as robust business infrastructure, highly developed digital capabilities, favorable demographics and customer preferences.

“Our announcement today is a crucial part of our ongoing strategic refocusing plan to focus our efforts on higher value markets and accelerate our path to profitability,” said Oren ShusterCEO of IM Cannabis. “As we exit the Canadian cannabis market, we seek to maximize efficiency and create the right balance for future success. We are further strengthening our Israeli operations and preparing to bring our expertise to Europe to achieve leadership in the medical cannabis market and be fully prepared to capitalize on the recreational market upon legalization. »

As part of the announced restructuring, IMC’s wholly-owned Canadian subsidiary, Trichome Financial Corp. (“Financial Trichome“), and certain of its wholly owned subsidiaries, including Trichome JWC Acquisition Corp., MYM Nutraceuticals Inc., Trichome Retail Corp., MYM International Brands Inc. and Highland Grow Inc. (collectively Trichome Financial, “Trichome“), filed this morning and obtained creditor protection under Canadian law Companies Creditors Arrangement Act (“CCAA“) pursuant to an order of the Ontario Superior Court of Justice (Commercial List) (the “To researchThe proceeding under the CCAA concerns only Trichome. As such, the other assets or subsidiaries of the Company, including those in Israel and Germanyare not parties to the proceedings under the CCAA.

The CCAA proceeding will provide Trichome with the stability and flexibility to restructure its business, including through a court-approved sale and investment solicitation process.”SISP“). As a result, the Company’s activities in Canada are expected to continue through Trichome until a sale transaction or other restructuring transaction(s) is completed.

Court documents filed in Trichome’s CCAA proceedings can be viewed at https://www.ksvadvisory.com/insolvency-cases/case/trichome.

About IM Cannabis Corp.

IM Cannabis (NASDAQ: IMCC) (CSE: IMCC) is an international cannabis company providing premium products to medical patients in Israel and Germany, Canada, the three largest federal legal markets. The company is built on 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 most stringent regulatory environments, the Company strives to amplify its market and brand power to become a global player in premium cannabis.

The IMC ecosystem operates in Israel through its business relationship with Focus Medical Herbs Ltd. (“Focus Medical”), which imports and distributes cannabis to medical patients, based on years of proprietary data and patient information. The Company also operates medical cannabis retail pharmacies, online platforms, distribution centers and logistics centers in Israel that enable the safe delivery and quality control of IM Cannabis products throughout the value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it also distributes cannabis to pharmacies for medical cannabis patients. In CanadaIMC operates through Trichome Financial and its wholly owned subsidiaries Trichome JWC Acquisition Corp. and MYM Nutraceuticals Inc., where it grows and processes cannabis for the adult-use market at its Ontario and New Scotland facilities under the WAGNERS and Highland Grow brands. For more information, please visit www.imcannabis.com.

Company Contact:
Maya LustigInvestors & Public Relations Director
Cannabis IM
+972-54-677-8100
[email protected]

Oren ShusterCEO
IM Cannabis Corp.
+972-77-3603504
[email protected]

Disclaimer for forward-looking information

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of the laws of Canada and United States securities laws (collectively, “forward-looking information“). Forward-looking information is 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”, “should”, “should”, “might” or “could” occur or be achieved and other similar expressions. Forward-looking information in this press release includes, but is not limited to, statements regarding the Company exiting the Canadian cannabis market to focus on Israel, Germany and Europe; achieve profitability in 2023; expectations related to the demand for and dynamics of the Company’s Israeli business; the restructuring of Trichome under the CCAA; and the continuation of the Company’s Canadian operations through Trichome until a sale transaction or one or more other restructuring transactions are completed.

By its very nature, forward-looking information involves inherent risks and uncertainties, which give rise to the possibility that actual results could differ materially from those currently anticipated or implied in this press release. These include, but are not limited to: any failure by the Company to maintain “de facto” control over Focus Medical and/or High Way Shinua Ltd. (“HW Shinua“) in accordance with IFRS 10; the Company’s failure to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in Canada, Israel Where Germany like the Israeli or German government deciding to abandon efforts to decriminalize or legalize recreational cannabis for adult use; the Company’s ability to access future financing if needed or on terms acceptable to the Company; the risks of product liability and other safety-related liabilities arising from the use of the Company’s cannabis products; supply chain constraints; loss of licenses; competition; reliance on key personnel; litigation risks; the risk of default on existing debt and war and civil strife in Eastern Europe and the Middle East.

Please refer to the other risks, uncertainties and factors disclosed under the heading “Risk Factors” in the Company’s MD&A dated August 15th^e2022 and Annual Information Form of March, 31st^st2022 filed with the Canadian securities authorities and which are available on the Company’s issuer profile on SEDAR at www.sedar.com and EDGAR at www.sec.gov. Any forward-looking information included in this press release is made as of the date of this press release and is based on management’s beliefs, estimates, expectations and opinions as of that date. The Company undertakes no obligation to update forward-looking information except as required by applicable securities laws. Investors should not place undue reliance on forward-looking information. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

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