Mr. Oren Shuster reports

IMC TO TRANSFER ITS ORANIM PHARMACY SHARES BACK TO THE SELLER

Further to IM Cannabis Corp.'s news release dated Jan. 12, 2024, the company has decided not to make remaining instalment payments instalments (in example, 5,873,000 Israeli shekels including interest or $2,154,000) by IMC Holdings Ltd., and as such will transfer the 51 per cent shares held by IMC Holdings back to the seller.

"With the April 1 cannabis legalization in Germany, we are focusing our resources on the German market, where we expect to see the biggest growth potential," said Oren Shuster, chief executive officer of IM. "With both of our core markets, Germany and Israel, currently undergoing rapid evolution, we need to assure that we allocate our resources to the growth opportunities where we expect the best return on investment."

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 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 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 as discontinued.

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