IM Cannabis Corp. said it will sell its European assets to an entity controlled by its CEO in a deal valued at $2.5 million.
The transaction, announced on Friday, is intended to simplify the company’s operational structure by consolidating its European operations under a single entity. The assets include cultivation, production, and distribution facilities in key markets.
The buyer, a private company linked to IM Cannabis CEO Oren Shuster, will acquire the assets for $2.5 million in cash. The consideration reflects the current market valuation of the European operations, according to the company statement.
The deal remains subject to customary closing conditions, including regulatory approvals and shareholder consent. IM Cannabis said it expects the transaction to be completed within the next three to six months, pending necessary clearances.
IM Cannabis operates primarily in Israel and Europe, with a focus on medical cannabis and hemp-derived products. The company has faced financial challenges in recent quarters, reporting a net loss of $12.3 million in its most recent fiscal year.
Shuster, who has led the company since 2021, stated that the transaction aligns with the company’s strategy to optimize resources and enhance profitability. The CEO-controlled entity has not been disclosed publicly beyond its association with Shuster.
IM Cannabis did not provide additional financial details or projections regarding the impact of the sale on its consolidated financial statements.
