Mr. Oren Shuster reports

IMC ANNOUNCES THE CONCLUSION OF THE PLANNING AND CONSTRUCTION LEGAL PROCEEDINGS

IM Cannabis Corp. has noted that the construction proceedings against Focus Medical Herbs Ltd. were concluded on Dec. 28, 2023. The company maintains de facto control of Focus Medical. Focus Medical was indicted and a fine of $129,000 has been imposed. The cultivation facility, which was the focus of the proceedings, was closed in June, 2022, in alignment with the company's strategic shift toward import and sales.

"The company continues to operate as usual. The importation and sale of our premium brands remain unaffected. Under the circumstances, this is the best outcome we could have obtained, and we can look at this as an achievement," said Oren Shuster, chief executive officer of IM Cannabis.

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's 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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