IM Cannabis Corp. said it signed a definitive share purchase agreement on Aug. 16, 2026 to sell all outstanding shares of I.M.C. Holdings Ltd. to Slil.com Holding Ltd., a transaction the company says should improve shareholders' equity by about C$3 million, reduce liabilities, strengthen working capital and simplify its structure. Before closing, IMC Holdings is to complete a reorganization that moves the company's Israeli operations out of IMC Holdings and leaves them with IM Cannabis. After that step, IMC Holdings is expected to mainly hold the equity interests in Adjupharm GmbH, Xinteza API Ltd. and Shiran Societe Anonyme, along with retained liabilities assumed or kept by Slil that are not expected to materially exceed C$9.4 million in aggregate unless both sides agree otherwise. Consideration consists of prior aggregate C$3,000,000 advance payments made by Slil and an affiliate, plus Slil's assumption of those liabilities, and no IMCC or IMC Holdings securities are being issued or exchanged. The company said it will focus on its retained Israeli medical cannabis operations after closing while continuing to assess other opportunities. Because Slil is beneficially owned and controlled by Oren Shuster, the company's Chief Executive Officer, a director, securityholder and debtholder, the sale is a related party transaction under MI 61-101 (Canadian minority-holder protection rules for special transactions). IM Cannabis said it intends to rely on financial hardship exemptions from the formal valuation and minority approval requirements, while still obtaining a fairness-related financial analysis from Beta Finance T.Y.S Ltd. to assist a special committee of independent directors and the board. Closing remains subject to customary conditions including the pre-closing reorganization, a valid tax certificate from the Israel Tax Authority and other consents and approvals, with an outside date of Sept. 30, 2026.