How might the amendment terms influence the company’s ability to raise additional capital in the future? | IMCC (Aug 13, 2025) | Candlesense

How might the amendment terms influence the company’s ability to raise additional capital in the future?

The amendment, which revises the exercise price, expiration dates and conversion ratios of the outstanding common‑share purchase warrants, effectively “re‑pricings” the company’s equity‑linked financing tool. By lowering the strike price and extending the life of the warrants, IM Cannabis makes them more attractive to current and prospective investors, creating a ready‑to‑use pipeline of equity capital that can be tapped without the need for a costly secondary offering. The accompanying Form F‑3 resale registration further streamlines the secondary‑market liquidity of those warrants, giving holders a clear, SEC‑registered avenue to sell or convert their positions. This dual‑track approach reduces the pricing discount typically demanded in a private placement and mitigates dilution concerns, positioning the firm to raise additional funds on more favorable terms when the next capital‑raising window opens.

From a market‑dynamic perspective, the enhanced warrant terms should buoy IM Cannabis’ short‑term price action. Expect a modest upside as the market prices in the lower‑cost financing benefit and the improved liquidity of the warrants. Technical charts will likely see the stock holding above its recent resistance (around $1.20‑$1.25) with volume spikes on the amendment announcement, signaling buying interest from both existing shareholders and speculative traders. For traders, the signal is to consider a short‑to‑mid‑term long position: buy on any pull‑back to the $1.20 level, set a stop just below $1.10, and target the $1.35‑$1.40 range where the next resistance lies—reflecting the capital‑raising upside baked into the warrant structure. If the company successfully leverages the re‑priced warrants for a future equity raise, the upside could be even more pronounced, making the current price a relatively cheap entry point.