IM Cannabis Corp. 20-F: Shareholder Loans & Management Fees Detailed

Ticker: IMCC · Form: 20-F · Filed: 2025-03-31T00:00:00.000Z

Sentiment: neutral

Topics: 20-F, shareholder-loan, management-fee, cannabis

TL;DR

IM Cannabis Corp. 20-F shows $427 in owed management fees to main shareholders and details a NIS 1M loan.

AI Summary

IM Cannabis Corp. filed its 20-F for the fiscal year ending December 31, 2024. The filing details financial information and operational aspects, including GMP and GDP licenses. Notably, the company had outstanding management fees totaling $427 as of December 31, 2024, owed to an entity controlled by its main shareholders. Additionally, a loan agreement from October 5, 2023, with main shareholders for NIS 1 million (approximately $394) at an 18% interest rate was mentioned, with repayment due within 6 months.

Why It Matters

This filing provides insight into IM Cannabis Corp.'s financial health and its relationships with key shareholders, which can impact future investment and operational decisions.

Risk Assessment

Risk Level: medium — The reliance on loans and management fees from main shareholders, along with specific interest rates and repayment terms, indicates potential financial entanglements and risks.

Key Numbers

Key Players & Entities

FAQ

What is the nature of the management fee paid to the entity controlled by main shareholders?

The filing states it is a management fee to be paid to an entity controlled by the Company's main shareholders, with outstanding amounts of $427 as of December 31, 2024, and $187 as of December 31, 2023.

What were the terms of the loan agreement entered into on October 5, 2023, with main shareholders?

IMC Holdings entered into a loan agreement with two main shareholders to borrow NIS 1 million (approximately $394) at an 18% interest rate, with associated application and origination fees of 4% per annum. The principal and accrued interest were to be paid within 6 months.

What licenses does IM Cannabis Corp. hold?

The filing mentions that the licenses consist of GMP and GDP licenses.

How did the Reverse Share Split affect the loss per share?

The loss per share includes the effect of the Reverse Share Split, as noted in the filing.

What is the total amount of outstanding management fees as of December 31, 2024?

The total outstanding amount related to management fees to be paid to an entity controlled by the main shareholders of the Company was $427 as of December 31, 2024.

From the Filing

0001178913-25-001126.txt : 20250331 0001178913-25-001126.hdr.sgml : 20250331 20250331081511 ACCESSION NUMBER: 0001178913-25-001126 CONFORMED SUBMISSION TYPE: 20-F PUBLIC DOCUMENT COUNT: 161 CONFORMED PERIOD OF REPORT: 20241231 FILED AS OF DATE: 20250331 DATE AS OF CHANGE: 20250331 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IM Cannabis Corp. CENTRAL INDEX KEY: 0001792030 STANDARD INDUSTRIAL CLASSIFICATION: MEDICINAL CHEMICALS & BOTANICAL PRODUCTS [2833] ORGANIZATION NAME: 03 Life Sciences EIN: 000000000 STATE OF INCORPORATION: A1 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 20-F SEC ACT: 1934 Act SEC FILE NUMBER: 001-40065 FILM NUMBER: 25789023 BUSINESS ADDRESS: STREET 1: KIBBUTZ GLIL YAM CITY: CENTRAL DISTRICT STATE: L3 ZIP: 4690500 BUSINESS PHONE: 416-256-4202 MAIL ADDRESS: STREET 1: KIBBUTZ GLIL YAM CITY: CENTRAL DISTRICT STATE: L3 ZIP: 4690500 20-F 1 zk2532910.htm 20-F IM Cannabis Corp. - 1792030 - 2025 The licenses consist of GMP and GDP licenses. Loss per share includes the effect of Reverse Share Split (see also Note 18A below). false FY 0001792030 Include the effect of Reverse Share Split (see also Note 18A above). Including outstanding amount related to management fee to be paid to entity controlled by main shareholders of the Company in total amount of $427 as of December 31, 2024. See also Note 24A below. On October 5, 2023, IMC Holdings entered into a loan agreements with two main shareholders, to borrow a principal amount of NIS 1 million (approximately $394) which bears an interest at a rate of 18%, with associated application fee of 4% per annum and an origination fee of 4% per annum. The principal amount and accrued interest shall be paid within 6 months. Including outstanding amount related to management fee to be paid to entity controlled by main shareholders of the Company in total amount of $187 as of December 31, 2023. See also Note 24A below. On November 29, 2022, IMC Holdings signed on a convertible loan agreement with Telecana Ltd. (“Telecana”), a pharmacy for sell of medical Cannabis under which IMC Holdings granted a loan amounted to NIS 1,545 (approximately $611) which shall be converted into 1,040 shares which represents 51% of the total equity of Telecana on a diluted basis, upon the earlier of (i) Telecana will receive the permit for sell of medical Cannabis from the Israeli Ministry of Health, (ii) IMC Holdings' sole decision for conversion. As of December 31, 2023, IMC Holdings didn’t start the regulatory process of receiving the Israeli Ministry of Health approval for the conversion. Consequently, during the year ended December 31, 2023, IMC Holdings recognized a revaluation loss of $611 from remeasurement of the loan. Includes payments to shareholders for the years ended 2023, 2022 and 2021 of $475, $503 and $455, respectively. IMC Holdings held an option to acquire from main shareholders of the company an ownership which represents a rate of 74% of the voting rights in Focus (the “Option”). According to accounting criteria in IFRS 10, IMC Holdings is viewed as effectively exercising control over Focus, and thus the financial results of Focus were consolidated with those of the Group. On February 26, 2024, the Option was fully exercised and the Company holds 74% of the voting rights in Focus. In September 2024, the Board approved the purchasing of the remaining 26% of the voting rights in Focus from Ewave, pending all necessary organizational and regulatory approvals. The licenses consist of GMP and GDP licenses in Germany which have determined to have an indefinite useful life. Was deconsolidated effective April 15, 2024 (see also Note 19F below) Inactive entity. On January 8, 2025, the Israeli Companies Registrar approved the liquidation status which shall be completed 100 days from the approval date. On January 13, 2025, the Israeli Companies Registrar approved the liquidation status which shall be completed 100 days from the approval date. Leasehold improv

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