IM Cannabis Corp. (NASDAQ: IMCC) today announced that it has entered into a non-binding Letter of Intent to acquire 51% of the issued and outstanding equity securities of Space Defense Innovations LLC, a Polish limited liability company, on a fully diluted basis.
SDI, through its wholly owned subsidiary BlueAero Group Sp. z o.o., operates in the unmanned aerial systems sector, is a reseller and, upon receipt of applicable regulatory licenses, is expected to become a manufacturer of BlueBird Aero Systems' tactical UAS and unique Hybrid Fixed-Wing VTOL-UAS Products in Europe with exclusivity in Poland.
From VTOL ISR (vertical take-off and landing with intelligence, surveillance, and reconnaissance) platforms to loitering munition, 3-dimensional mapping capabilities and vast field proven experience, the Products combine advanced Israeli technology and military experience with proprietary in-house design, development and manufacturing. BlueBird's comprehensive certified capabilities include: infrastructure, composite materials, mechanical, electronic and aeronautical engineering, as well as software development.
The transaction aligns with the Company's stated objective of evaluating and building technology-driven businesses beyond its core medical cannabis operations in Israel and Germany.
Under the terms of the LOI, IMCC will acquire 51% of SDI for a combination of IMCC common shares (capped so that no SDI shareholder beneficially owns more than 19.99% of IMCC) and/or pre-funded warrants, plus a 24-month seller loan bearing 9% annual interest with 100% warrant coverage on the principal.
IMCC shares dropped $1.26, or 30.9%, Wednesday to $2.88.
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