IM Cannabis Corp. ("IMC" or the "Company") (NASDAQ:IMCC), a medical cannabis company with operations in Israel and Germany, is pleased to announce that it has entered into a non-binding letter of intent (the "Letter of Intent") with Slil.com Holding Ltd., a privately-held Israeli entity beneficially owned and controlled by Oren Shuster, the Company's Chief Executive Officer, a director and debtholder of IMC ("Slil"), pursuant to which the Company has agreed to sell to Slil its European-focused assets (the "Transaction").

Pursuant to the terms and conditions of the Letter of Intent, the Company will sell its wholly owned subsidiary, I.M.C. Holdings Ltd. ("IMC Holdings"), to Slil, which, following a pre-closing reorganization, will primarily hold the Company's European operations, including Adjupharm GmbH in Germany, as well as the Company's interests in Xinteza API Ltd. and Shiran Societe Anonyme.

In consideration for the sale of all the issued and outstanding shares in the capital of IMC Holdings, Slil will assume an aggregate of approximately C$10,500,000 of debt held by the Company and IMC Holdings, comprised of C$7,500,000 in retained liabilities and an additional C$3,000,000 in certain short-term liabilities, significantly reducing IMC's debt burden.