IM Cannabis Implements 30-for-1 Reverse Stock Split as It Fights to Maintain Nasdaq Listing

IM Cannabis Corp. (NASDAQ: IMCC) is moving ahead with a 30-for-1 reverse stock split as the international cannabis operator attempts to regain compliance with Nasdaq’s minimum bid price requirement.

The consolidation was expected to become effective Thursday, August 27, with IM Cannabis shares beginning to trade on a post-consolidation basis at the opening of Nasdaq trading, subject to final confirmation and completion of applicable market processes. The company originally announced the plan on August 18.

Under the consolidation, shareholders will receive one post-consolidation common share for every 30 shares previously held. The move is expected to reduce IM Cannabis’ outstanding share count from approximately 18.1 million shares to roughly 603,922 shares. The company will continue trading under the ticker IMCC.

The move does not fundamentally change the value of investors’ holdings at the time of the consolidation. Instead, it reduces the number of shares outstanding while proportionally increasing the price per share.

For IM Cannabis, however, the higher share price serves an important purpose.

The company said the primary objective is to regain compliance with Nasdaq’s $1 minimum bid price requirement. IM Cannabis has until October 6 to satisfy the exchange’s requirement. To regain compliance, its shares must close at or above $1 for at least 10 consecutive business days during the applicable compliance period.

Nasdaq compliance has become particularly important for smaller publicly traded cannabis companies as depressed valuations across the sector have pushed some stocks toward exchange minimums.

IM Cannabis operates a medical cannabis platform focused primarily on Israel and Germany. In Israel, its subsidiaries import and distribute medical cannabis while also operating pharmacies and online platforms. In Germany, the company operates through Adjupharm GmbH, distributing medical cannabis to pharmacies.

The company cautioned that the reverse split does not guarantee it will regain Nasdaq compliance or maintain its listing.