Mr. Oren Shuster reports

IM CANNABIS RECEIVES NASDAQ NOTIFICATION REGARDING MINIMUM BID PRICE DEFICIENCY

IM Cannabis Corp. received written notification from the Nasdaq Stock Market LLC on Aug. 1, 2023, that the company is not in compliance with the minimum bid price requirement set forth in Nasdaq rules for continued listing on Nasdaq.

Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 (U.S.) per share and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the company's common shares for the 30 consecutive business days from June 16, 2023, to July 31, 2023, the company no longer meets the minimum bid price requirement.

The notification letter does not impact the company's listing on the Nasdaq at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the company has been provided 180 calendar days, or until Jan. 29, 2024, to regain compliance with Nasdaq Listing Rule 5550(a)(2). To regain compliance, the company's common shares must have a closing bid price of at least $1.00 (U.S.) for a minimum of 10 consecutive business days. In the event the company does not regain compliance by Jan. 29, 2024, the company may be eligible for additional time to regain compliance or may face delisting.

The company's common shares are also listed on the Canadian Securities Exchange and the notification letter does not affect the company's compliance status with such listing.

About IM Cannabis Corp.

IM Cannabis is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany, two of the largest medical cannabis markets. The company has recently exited operations in Canada to pivot its focus and resources to achieve sustainable and profitable growth in its highest-value markets, Israel and Germany. The company leverages a transnational ecosystem powered by a unique data-driven approach and a globally sourced product supply chain. With an unwavering commitment to responsible growth and compliance with the strictest regulatory environments, the company strives to amplify its commercial and brand power to become a global high-quality cannabis player.

The IM Cannabis ecosystem operates in Israel through its commercial relationship with Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The company also operates medical cannabis retail pharmacies, on-line platforms, distribution centres and logistical hubs in Israel that enable the safe delivery and quality control of IM Cannabis products throughout the entire value chain. In Germany, the IM Cannabis ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients. Until recently, the company also actively operated in Canada through Trichome Financial Corp. and its wholly owned subsidiaries, where it cultivated, processed, packaged and sold premium and ultrapremium cannabis at its own facilities under the Wagners and Highland Grow brands for the adult-use market in Canada. The company has exited operations in Canada and considers these operations discontinued.

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