IMC Announces Potential Reverse Merger With Kadimastem; Kadimastem Shareholders Will Hold 88% Of The Common Shares Of The Resulting Issuer And The Shareholders Of The Company Will Hold 12% Of The Resulting Issuer Share
Portfolio Pulse from Benzinga Newsdesk
IM Cannabis Corp. (IMCC) announced a non-binding term sheet for a reverse merger with Israel-based Kadimastem Ltd, a clinical cell therapy company. Post-merger, Kadimastem shareholders will own 88% of the new entity, with IMCC shareholders owning 12%. The merger aims to shift the business focus from medical cannabis to biotechnology, leveraging Kadimastem's FDA-approved Phase IIa clinical trial for ALS and a diabetes product development partnership. The deal includes a plan to sell IMCC's existing medical cannabis operations, with proceeds going to contingent value right holders. Kadimastem aims for a NASDAQ listing to enhance its US market presence.
February 28, 2024 | 2:14 pm
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IM Cannabis Corp. (IMCC) is entering a reverse merger with Kadimastem, with Kadimastem shareholders owning 88% of the new entity. This merger signifies a strategic pivot to biotechnology, focusing on Kadimastem's clinical cell therapy for ALS and diabetes.
The merger with Kadimastem represents a significant shift in IMCC's business strategy, moving from medical cannabis to biotechnology. This could potentially open new growth avenues for IMCC, especially considering Kadimastem's FDA-approved clinical trials and its strategic focus on the US market. The positive score reflects the potential for increased investor interest and market valuation due to these new opportunities, despite the dilution of existing shareholders' equity.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100