IM Cannabis Corp. (Nasdaq: IMCC) announced that it is exploring a U.S. market entry strategy and has engaged SSC Advisors to provide financial and strategic guidance on the move, including the identification of potential partners or acquirers. The company also said it is evaluating the divestiture of its German and Israeli operations as part of the U.S. expansion plan.
The U.S. entry is being pursued in the wake of President Donald Trump’s executive order signed on December 18, 2025, which directs the Attorney General to expedite the rescheduling of marijuana from Schedule I to Schedule III under the Controlled Substances Act. Rescheduling would remove the drug from the most restrictive category, allowing federal tax deductions that are currently prohibited under Section 280E and opening the door to federal research funding. IM Cannabis will monitor the rescheduling process closely as it shapes its U.S. strategy.
IM Cannabis’ recent financial performance provides context for the strategic shift. In Q1 2025 the company posted a net profit of $175 k, a 4 % year‑over‑year revenue increase, but revenue in Israel fell 66 % due to supply‑chain disruptions linked to the ongoing conflict in the region. Q2 2025 saw a 14 % revenue decline YoY, yet gross profit surged 306 % as the company tightened cost controls and improved pricing in its German operations. In Q4 2024 revenue rose 25 % YoY and the company reported a positive adjusted EBITDA of $0.5 M. Despite these gains, IM Cannabis carries a debt burden of $12.62 M and has recorded negative EBITDA over the past twelve months, prompting a search for new revenue streams and a potential balance‑sheet cleanup.
CEO Oren Shuster said the Q1 2025 results marked a “clear inflection point” for the company, citing net profitability and improved gross margins as evidence of a sustainable growth trajectory. CFO Asi Levi, who took the helm on December 12, 2025, emphasized disciplined cost management and operational efficiency as key drivers of the company’s improved operating ratio. Together, the leadership team views the U.S. market as a high‑growth opportunity that can offset the headwinds in Israel and provide a larger, more diversified revenue base. The planned divestitures of German and Israeli assets are intended to streamline operations, reduce debt, and free capital for U.S. expansion.
The combination of a favorable regulatory environment, a growing U.S. cannabis market, and the company’s recent financial turnaround positions IM Cannabis to potentially unlock significant new revenue and improve its balance sheet. If the U.S. rescheduling proceeds as anticipated, the company could access federal tax benefits and research funding that are currently unavailable, further enhancing its competitive position. The divestiture strategy, while still in the assessment phase, signals a willingness to make hard choices to support long‑term growth.
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