TORONTO and GLIL YAM, Israel, March 17, 2026 /PRNewswire/ -- IM Cannabis Corp. ("IMC" or the "Company") (NASDAQ:IMCC), a medical cannabis company with operations in Israel and Germany, today announced that, following its previous announcement regarding its decision to explore the introduction of additional business activities, it has entered into a non-binding letter of intent (the "LOI") to acquire 51% of Blackaxe Technologies Spolka z Organiczona ("Blackaxe"), a Polish technology company specializing in advanced defense and intelligence solutions.

The proposed transaction represents a potential strategic expansion for IMC into the defense and homeland security technology sectors.

Black Axe operates in various defense segments including satellite intelligence, imagery and AI analytics, and counter-UAS (anti-drone) solutions based on cyber interception technologies. Black Axe's activities are based on advanced Israeli technologies designed to support governments, defense organizations and security agencies in addressing evolving aerial and intelligence threats.

The proposed transaction takes place against the backdrop of a rapidly expanding global defense and security market driven by rising geopolitical tensions and the proliferation of new threats such as low-cost drones and advanced missile systems. Current conflicts in Eastern Europe and the Middle East have accelerated demand for satellite intelligence, real-time analytics, and counter-drone technologies, which are becoming critical capabilities for both military forces and homeland security agencies.

The proposed transaction is subject to completion of due diligence, execution of definitive agreements and customary closing conditions and regulatory approvals. There can be no assurance that the parties will enter into a definitive agreement or that the proposed transaction will be completed.

About IMC

IMC (NASDAQ:IMCC) is an international company focused on building and scaling innovative businesses and technologies across global markets. The Company currently operates a medical cannabis platform serving patients in Israel and Germany while evaluating opportunities to expand into additional technology-driven sectors.

The IMC ecosystem operates in Israel through its subsidiaries, which import and distribute cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies and online platforms, in Israel that enable the safe delivery and quality control of IMC products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients.

Disclaimer for Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements under applicable Canadian and United States securities laws (collectively, "forward-looking statements"). All information that addresses activities or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the press release, such forward-looking statements include, but are not limited to, statements relating to: the proposed acquisition of 51% of Black Axe and the Company's potential strategic expansion into defense and homeland security technology markets; and its expectation to continue executing on its strategy to explore additional business activities. The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward-looking statements due to a number of factors and risks. These include: the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the Company's ability to continue to meet the listing requirements of the Nasdaq Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and its subsidiaries (collectively, the "Group") to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group's obligations; the Group's possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group's cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt; risks surrounding war, conflict and civil unrest in Eastern Europe and the Middle East, including the impact of the multi front war Israel is facing on the Company, its operations and the medical cannabis industry in Israel; risks associated with the Company focusing on the Israel and Germany markets; the inability of the Company to achieve sustainable profitability and/or increase shareholder value; the inability of the Company to actively manage costs and/or improve margins; the inability of the company to grow and/or maintain sales; the inability of the Company to meet its goals and/or strategic plans; the inability of the Company to reduce costs and/or maintain revenues; the Company's inability to take advantage of the legalization of medicinal cannabis in Germany; the Company's inability to use the proceeds as set out herein; and the Company's inability to file registrations statements in the timelines outlined herein or at all.

Please see the other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual report dated March 31, 2025, which is available on the Company's issuer profile on SEDAR+ at www.sedarplus.ca and Edgar at www.sec.gov/edgar. Any forward-looking statement included in this press release is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward looking information is made. The Company does not undertake any obligation to update forward-looking statements, except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Company Contact:

Michal Efraty

Investor & Public Relations

michal@efraty.com

Oren Shuster, CEO

IM Cannabis Corp.

info@imcannabis.com

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SOURCE IM Cannabis Corp.

IMC Announces a Strategic Entry to the Cyber Drone Interception and Satellite Intelligence Markets by Signing a Non-Binding Agreement to Acquire 51% of Blackaxe Technologies