Mr. Oren Shuster reports

IM CANNABIS SHARES COMMENCE TRADING ON 6:1 CONSOLIDATED BASIS

Further to its press release dated July 5, 2024, IM Cannabis Corp.'s common shares are now trading on the Canadian Securities Exchange and the Nasdaq Stock Market LLC on a one-for-six postconsolidated basis.

The company's trading symbol remains IMCC on both the CSE and the Nasdaq. The company's new Cusip number and international securities identification number are 44969Q406 and CA44969Q4060, respectively.

After giving effect to the consolidation, the common shares were reduced from 13,394,136 to 2,232,357 common shares. No fractional common shares were issued in connection with the consolidation. Instead, all fractional common shares equal to or greater than one-half resulting from the consolidation were rounded to the next whole number; otherwise, the fractional common share were cancelled. The exercise price and/or conversion price and number of common shares issuable under any of the company's outstanding convertible securities were proportionately adjusted in connection with the consolidation.

Computershare Investor Services Inc., the company's registrar and transfer agent for the common shares, has mailed letters of transmittal to registered shareholders of record as of July 12, 2024, providing instructions for the exchange of their common shares as soon as practicable following the effective date. Registered shareholders may also obtain a copy of the letter of transmittal by accessing the company's SEDAR+ profile. Until surrendered, each common share certificate or direct registration system statement representing preconsolidated common shares will represent the number of whole postconsolidated common shares to which the holder is entitled as a result of the consolidation. No action is required by beneficial holders to receive postconsolidation common shares in connection with the consolidation. Beneficial holders who hold their common shares through intermediaries (that is, a broker, bank, trust company investment dealer or other financial institution) and who have questions regarding how the consolidation will be processed should contact their intermediaries with respect to the consolidation.

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 focused its 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, which distributes cannabis to pharmacies for medical cannabis patients.

We seek Safe Harbor.