IM Cannabis Corp. (IMC) is proposing a reverse merger with Israeli biotechnology firm Kadimastem in which it would spin out – and potentially sell – its existing medical marijuana operations in Israel and Germany.
IMC, also headquartered in Israeli, said in a news release it entered into a nonbinding reverse merger and loan agreement with Kadimastem in which IMC shareholders would own 12% of a newly created subsidiary of IMC, while Kadimastem shareholders would hold 88%.
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The new company that will exist upon completion of the proposed transaction will change its business from medical cannabis to biotechnology, according to the release.
Kadimastem is a clinical-stage cell therapy company, which recently reported U.S. Food and Drug Administration approval for a Phase 2A multisite clinical
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