Mr. Oren Shuster reports

IMC EXPECTS ACCELERATED GROWTH IN GERMANY FROM THE COUNTRY'S GROUNDBREAKING CANNABIS LEGALIZATION

IM Cannabis Corp. is welcoming the German government's final approval legalizing cannabis last Friday, as well as the landmark medical cannabis act that has the potential to facilitate access for many new patients as of April 1.

The regulatory rescheduling of cannabis along with the expected market growth, provides IMC with a unique growth opportunity. In Germany, IMC: is #1 in sales per SKU within the German flower market1 grew +180% in 2023 while the market only grew +20%1 has the highest growth in the German market1 is the #5 cannabis distributor in Germany 1

"We have been working toward this moment for the last 4 years," said Richard Balla, CEO of IMC Germany. "We have the entire infrastructure in house. We are EU-GMP certified to repack bulk. We have an EU-GDP certified logistics center to store cannabis and are delivering IMC Cannabis to any pharmacy in Germany within 24 hours. Our team has extensive cannabis as well as pharmaceutical experience. We have all the necessary supply agreements in place to support accelerated growth. We believe that we are well positioned and are looking forward to growing significantly as the German market evolves as a result of the new legislation," concluded Balla.

1 Insight Health December 2023

About IM Cannabis Corp.

IMC (Nasdaq: IMCC) (CSE: IMCC) 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 IMC 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, online platforms, distribution centers, and logistical hubs in Israel that enable the safe delivery and quality control of IMC products throughout the entire value chain. In Germany, the IMC 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 ultra-premium 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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