IM Cannabis Corp.

First Note

Pursuant to a note purchase agreement between the Company and Lender dated April 6, 2026 (the “First Note Purchase Agreement”), the Company issued the Lender a note in the principal amount of US$250,000, with an original issuance discount of 10% (the “First Note”).

The First Note bears interest at a rate of 8% per annum, increasing to 14% upon the occurrence and continuation of an event of default, as defined in the First Note. The First Note is not repayable in cash and the Company’s obligations thereunder will be satisfied solely through the issuance of common shares in the capital of the Company (the “Common Shares”) upon conversion.

The conversion price in the First Note is set to the lower of (i) a fixed price of US$0.339 per Common Share, or (ii) 90% of the lowest daily volume-weighted average price (“VWAP”) during the 20 consecutive trading days preceding the conversion date, subject to a floor price of US$0.07. The First Note includes customary limitations, including a 4.99% beneficial ownership cap.

In connection with the First Note, the Company issued a warrant to purchase up to 272,861 Common Shares (the “First Note Warrants”) at an exercise price of C$0.47 per Common Share. The First Note Warrants became immediately exercisable upon its issuance date, April 6, 2026, and will expire after five years, on April 6, 2031.

The Company used the net proceeds from the First Note for general corporate purposes.