IM Cannabis Plans 30-to-1 Share Consolidation to Defend Nasdaq Listing

The board of IM Cannabis Corp. (IMCC ) has approved a 30-for-1 share consolidation to pull its stock back above the US$1.00 minimum bid price Nasdaq requires for continued listing, the medical cannabis company announced on August 18, 2026. The company expects the consolidation to take effect on August 27, 2026, cutting its outstanding common shares from 18,117,650 to approximately 603,922.

Under the plan, shareholders will receive one post-consolidation share for every thirty they hold. The company, which is incorporated in Canada and headquartered between Toronto and Glil Yam, Israel, said its name and its “IMCC” ticker will stay the same, while the shares’ identification numbers change. No fractional shares will be issued: fractions of one-half or more round up to a whole share, and smaller fractions are cancelled. Convertible securities will be adjusted proportionately, and registered shareholders will receive exchange instructions from the company’s transfer agent, Computershare Investor Services Inc.

The stated purpose is to lift the per-share trading price enough to restore compliance with Nasdaq’s US$1.00 minimum bid price rule. The exchange gave the company until October 6, 2026 to regain compliance, which happens automatically if the closing bid price holds at US$1.00 or more for ten consecutive business days during the 180-day grace period.

A Second Consolidation in Four Years

This is the second time IM Cannabis has reached for this instrument. In November 2022 the company consolidated its shares at a 10-to-1 ratio, reducing the count from 75,695,325 to approximately 7,569,526, also to satisfy Nasdaq’s minimum bid price requirement. Since then, dilution has rebuilt the share count: since January 2026 the company has issued a series of convertible promissory notes to an institutional investor in tranches ranging from US$225,000 to US$550,000, including a US$250,000 note financing announced August 7, 2026.

The current deficiency dates to April 10, 2026, when the company disclosed a written notice from Nasdaq that its shares had fallen below the US$1.00 threshold. That notice carried no immediate effect on trading, and the company’s announcement this week describes the same mechanics: a 180-day window running to October 6, 2026, with compliance confirmed in writing once the stock closes at or above US$1.00 for ten straight business days. The April disclosure added that if the first window lapses, the company may qualify for a second 180-day period provided it still meets the exchange’s other continued-listing standards; failing that, Nasdaq staff would move to delist the shares.

The Consolidation Lands Days After the German Exit Deal

The board’s decision comes in the middle of the deepest restructuring in the company’s history. On August 17, 2026 (one day before the consolidation announcement), IM Cannabis signed a definitive agreement to sell its subsidiary IMC Holdings to Slil.com Holding Ltd., a company beneficially owned and controlled by chief executive Oren Shuster. The package includes Adjupharm GmbH, the German medical cannabis distributor through which IM Cannabis has supplied pharmacies in Germany, along with Xinteza API Ltd. and Shiran Societe Anonyme. MyCannabis reported the terms of that divestment when it was signed.

The consideration consists of C$3 million in advance payments already made by the buyer plus the assumption of liabilities capped at roughly C$9.4 million, and the company projects the deal will improve shareholders’ equity by approximately C$3 million. Because the buyer is the CEO’s own company, the transaction is being treated as a related-party deal under Canadian securities rules, with the company invoking financial-hardship exemptions from the usual valuation and minority-approval requirements. Closing has an outside date of September 30, 2026.

Adjupharm’s departure removes the group’s entire German footprint. The Bad Oldesloe-based distributor served as the company’s European hub — in 2021 the company described it as an EU GMP-certified distributor whose supply agreements reached more than 6,000 German pharmacies. Once the sale closes, the listed company’s remaining business will be its Israeli medical cannabis platform: import and distribution to patients, plus retail pharmacies and online delivery. The German medical market itself continues to draw established suppliers — Cantourage recently posted a 45% increase in group EBITDA, driven by its premium pivot in Germany, and Village Farms reported record cannabis revenue on a 74% jump in export sales — but IM Cannabis will no longer participate in it.

The Numbers Behind the Move

• 30-to-1 consolidation ratio: one new share for every thirty held
• 18,117,650 shares outstanding, falling to approximately 603,922 after the consolidation
• US$1.00 minimum closing bid, held for ten consecutive business days, to regain Nasdaq compliance
• October 6, 2026: the deadline under the company’s current 180-day grace period
• C$16.3 million revenue and a C$6.9 million net loss for the first half of 2026, reported on August 13, 2026, against C$25.2 million revenue and a C$19,000 loss a year earlier
• A shareholders’ deficit of C$5.5 million and C$1.6 million in cash as of June 30, 2026

What the Announcement Itself Concedes

The company’s own release is explicit about the limits of the maneuver. The August 27 effective date is conditional on final confirmation from Nasdaq and on transfer agent and market implementation processes, and the board’s authorization allows completion any time up to September 15, 2026. The company also states directly that the consolidation may not be enough: it cautions that there is no assurance the move will restore compliance with the minimum bid price rule or that the listing will be maintained at all. A reverse split mechanically reprices the stock; it does not change the deficit, the shrinking revenue base, or the going-concern pressures the company has flagged in its filings.

The next fixed points are now on the calendar. Shares are expected to open on a post-consolidation basis on August 27, 2026. The European asset sale has a September 30, 2026 outside date. And on October 6, 2026, the Nasdaq grace period expires. By then the company will need ten consecutive business days of closes at or above US$1.00 behind it, or it will be asking the exchange for a second 180-day window.