IM Cannabis Corp. to acquire MYM Nutraceuticals Inc. in a share exchange deal

TORONTO: IM Cannabis Corp. has entered into a definitive agreement to acquire MYM Nutraceuticals Inc. and its licensed producer subsidiary Highland Grow Inc.

Under the terms of the transaction, the shareholders of MYM will receive 0.022 common shares of IMC for each common share of MYM.

Based on the 20-day volume-weighted average price (VWAP) of IMC common shares prior to this announcement, the implied MYM share price of $0.219 pursuant to the exchange ratio implies a 17.9% premium over the same period.

Upon the completion of the Transaction, MYM shareholders will own approximately 14.5% of IMC.

The transaction reinforces the Company’s strategy as a leading global premium cannabis producer and purveyor. Following completion of the Transaction, expected to occur before the end of the second half of 2021, IM Canabis will continue to operate under the IM Cannabis Corp. name with its common shares trading on the NASDAQ Capital Market and Canadian Securities Exchange under the ticker symbol “IMCC”.

Acquiring MYM and its subsidiary Highland Grow Inc. expands IMC’s focus on premium and super premium branded cannabis products in Canada, and upon closing consumers will have a broader choice of offerings and brands in these categories.

With coast-to-coast distribution, including a strong leadership position in eastern Canada, Highland Grow enhances IMC’s distribution capabilities, fast tracks the entrance of JWC (expected soon to be relaunched as “Wagners”) into new markets, and is expected to drive significant incremental revenue and EBITDA growth.

With the demand for premium-indoor grown cannabis increasing internationally, IMC’s medical patients in Israel will now have even more options from which to choose. Highland Grow has experienced meaningful revenue growth over the last six months, is currently profitable on an EBITDA basis, and is expected to be a meaningful contributor to IMC’s revenue and profitability trajectory in 2021 and beyond.

“Acquiring MYM is consistent with IMC’s focus on premium and super premium segments of the cannabis market for consumers and patients in all markets. The Transaction also demonstrates our disciplined approach to acquiring accretive companies that create financial and operational synergies and result in additional opportunities to export premium cannabis products to Israel and Germany,” said Oren Shuster, CEO, IMC.

“With coast-to-coast distribution, including a strong leadership position in Eastern Canada, Highland Grow wil lfurther enhance our distribution capabilities and fast-track our entrance into new markets.”

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