Under Delisting Pressure, IM Cannabis Approves Reverse Stock Split

TORONTO – IM Cannabis Corp. (IMCC), a medical Cannabis company operating in Israel and Germany, announced that its board has approved a one-for-thirty share consolidation, effective August 27, with September 15 as the outside date.

The consolidation will reduce roughly 18.1 million of its issued and outstanding common shares to approximately 603,900, subject to fractional share rounding. Fractions of at least one-half will be rounded up; those below that threshold will be cancelled. The company’s name and IMCC ticker remain unchanged.

The purpose is regulatory. Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum closing bid price of $1.00 per share. IMCC shares were trading around $0.10 ahead of the announcement. Following a formal deficiency notice from Nasdaq in April 2026, the company was granted a 180-day cure window, with an October 6 deadline. Shares must close at or above $1.00 for ten consecutive business days within that window to restore compliance.

The company has been down this road before. An identical deficiency notice arrived in August 2023, and IMCC regained compliance in July 2024 after shares held the required threshold for ten straight sessions, before slipping back below it within roughly two years.

The reverse split lands alongside a larger restructuring. One day before the consolidation announcement, IMC signed a definitive agreement to sell its European subsidiary, IMC Holdings, which holds Adjupharm GmbH in Germany and Xinteza API Ltd., to Slil.com Holding Ltd. (Slil), for approximately C$3 million in prior advance payments already made to the company, plus the assumption of up to C$9.4 million in existing liabilities. Slil is a private Israeli entity controlled by IMC CEO Oren Shuster, which required independent special committee review under Canadian related-party transaction rules. That deal is targeted to close by September 30, after which IMCC will retain only its Israeli operations: import, distribution, and a network of medical Cannabis pharmacies.

The financial context makes the urgency concrete. Half-year 2026 financial results, released five days before the consolidation announcement, showed H1 revenue of C$16.3 million, down 35% year-over-year, against a net loss of C$6.9 million compared to near-breakeven in the same period of 2025. Total liabilities exceeded total assets by C$5.5 million as of June 30. Management cited significant doubt about the company’s ability to continue as a going concern. Cash on hand was C$1.6 million against C$12.1 million in bank credit obligations. The company has relied on small tranches of convertible note financing (US$225,000 in July, US$250,000 in August) to sustain day-to-day operations.

IMC acknowledged in its SEC filing that the consolidation carries no guarantee of lasting compliance with Nasdaq’s continued listing requirements.

IM Cannabis’s position reflects a sequence recognizable across small-cap Cannabis issuers: prolonged losses, serial dilution, and shrinking capital access have cornered the company into structural remedies (a reverse split, an asset divestiture, a related-party transaction) that buy time rather than resolve underlying financial pressure. The October 6 deadline is now the operative clock. The post-split share price must hold above $1.00 for ten consecutive sessions, a test that rests on market confidence in a company whose own management has flagged going-concern risk. The consolidation solves an arithmetic problem. Restoring the revenue trajectory and balance sheet strength that would make that arithmetic durable is a separate challenge – and, as of this week, an unsettled one.