IM Cannabis Corp.

What they do

The company holds cultivation and processing licenses and GMP/GDP licenses, and operates through subsidiaries including IMC Holdings and Focus. Focus was consolidated under IFRS 10 because IMC Holdings held an option over 74% of its voting rights, and that option was fully exercised on February 26, 2024. In September 2024 the Board approved acquiring the remaining 26% of Focus, with approvals achieved on May 26, 2025.

Revenue drivers

• Cannabis cultivation and processing licenses — The company reports cultivation and processing licenses as an intangible asset class alongside brands and customer relationships, indicating licensed production activity is a core revenue source, though dollar amounts are not given in the excerpts.
• German GMP/GDP licensed operations — The company holds GMP and GDP licenses in Germany that were treated as indefinite-life intangibles before being impaired by $997 in the year ended December 31, 2025.
• Subleasing income — The company receives sublease income from an entity controlled by its main shareholders under an agreement executed August 15, 2024, at a fixed monthly NIS 17 thousand linked to ICPI plus VAT; advance receipts were $35 and $30 at December 31, 2025 and 2024.
• Management services arrangements — The company incurs management fees to entities controlled by main shareholders, including $526, $481 and $475 in 2025, 2024 and 2023, and separately pays NIS 14,000 plus VAT monthly to a relative of a main shareholder for strategy and marketing services.

Recent performance

The company recognized a total impairment loss of $997 in the year ended December 31, 2025, tied to German GMP and GDP licenses. It deconsolidated an entity effective April 15, 2024. In January 2025 the Israeli Companies Registrar approved liquidation status for certain entities, completed during the year. Loss per share figures include the effect of a Reverse Share Split. Relevant-party balances include $698 and $427 of management fees payable to a main-shareholder-controlled entity at December 31, 2025 and 2024.

Strategy

The company moved from an option arrangement to full consolidation of Focus, exercising its option for 74% of voting rights on February 26, 2024. In September 2024 the Board approved acquiring the remaining 26% of Focus, with organizational and regulatory approvals achieved on May 26, 2025. It also cleaned up its structure, completing liquidation of certain entities during 2025 after Israeli Registrar approval in January 2025. The company maintains Germany-focused GMP/GDP licensed operations despite the $997 impairment.

Risks

• License value impairment — German GMP and GDP licenses were impaired by $997 in 2025, indicating the carrying value of core licenses may not be recoverable.
• Related-party reliance — The company pays management fees ($526 in 2025) and subleases premises to entities controlled by main shareholders, creating potential conflicts of interest.
• Regulatory and license dependence — Operations depend on cultivation, processing, GMP and GDP licenses across Israel and Germany, and loss of any license would directly affect revenue.
• Financing and guarantee arrangements — The company uses unpaid customer invoices as guarantees for short-term loans from non-banking credit services entities and issued a bank guarantee for the sublease.

Outlook

The excerpts do not include forward-looking guidance on revenue or profitability. They describe structural changes already executed, including full ownership of Focus and completion of entity liquidations. The $997 impairment of German licenses is the most recent reported signal on that market. No management outlook statements for 2026 are provided in the source material.