IM Cannabis Corp. Enters into Letter of Intent to Sell European Activities

IM Cannabis Corp. has entered into a non-binding letter of intent to sell its European-focused assets to Slil.com Holding Ltd., an entity controlled by CEO Oren Shuster. This transaction is expected to result in a significant debt reduction of approximately CAD$10.5 million through the assumption of liabilities by Slil. The company will retain its core Israeli operations, allowing for a strategic focus on the domestic market and pursuit of new investment opportunities. The deal aims to improve working capital, strengthen the balance sheet, and enhance cash flow. A special committee and an independent financial consulting firm are reviewing the transaction for fairness. The deal is subject to negotiation of a definitive agreement, regulatory approvals, and other customary conditions. It is considered a related party transaction, and the company intends to rely on financial hardship exemptions from certain minority shareholder approval and formal valuation requirements.