Mr. Oren Shuster reports

IMC ANNOUNCES THE TERMINATION OF A PRELIMINARY TERM SHEET WITH KADIMASTEM LTD., A PUBLIC COMPANY TRADED ON THE TEL AVIV STOCK EXCHANGE TO FULLY FOCUS ON THE RECENTLY LEGALIZED GERMAN MARKET

IM Cannabis Corp. has terminated the preliminary term sheet signed on Feb. 13, 2024, with Kadimastem Ltd., a public company traded on the Tel Aviv Stock Exchange under the symbol KDST.

"After the April 1 legalization in Germany, we are seeing that the accelerated growth in April is continuing through May. We believe this is just the beginning, as we anticipate that Germany could become one of the most significant legal markets in the world," said Oren Shuster, chief executive officer of IM Cannabis. "We are continuing to explore all options, focusing on providing the best value for our shareholders."

According to the separation agreement signed with Kadimastem, as a result of this termination, the loan provided to IMC Holdings Ltd. by Kadimastem in a total amount of $300,000 will be repaid together with 9-per-cent annual interest accrued thereon, in three instalments by July 31, 2024.

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.

We seek Safe Harbor.