IM Cannabis Corp. enters the week with a dramatic unwind in short positioning — and fresh Q1 numbers that show the business is still shrinking.
Short interest has collapsed over the past month. It now represents under 0.3% of the free float, down from nearly 4% in mid-April. The unwind accelerated sharply this week: estimated shares short dropped 82% over the past seven days, and roughly 87% over the past month. The practical read is that bearish conviction has evaporated from the lending market, not that bulls have arrived. Cost to borrow has followed the same trajectory — falling from above 20% in early April to just 3.5% now, its lowest level in at least six weeks. Availability is wide open. That combination — near-zero short interest, sub-4% borrow cost — means the lending market holds no meaningful signal on near-term direction.
The short score of 27, while ranking in the 92nd percentile of the broader universe, is sliding steadily. It peaked above 42 on April 29 and has drifted lower every session since, now at 27. The percentile ranking reflects the context: even a low absolute short interest figure can rank high when the broader universe is lightly shorted. Days to cover is just 0.1, confirming there is no crowded-short dynamic here.
The more pressing story is the fundamental picture. Q1 2026 results dropped today. Revenue came in at $6.3 million, down from $8.7 million a year ago — a 27% decline. EPS was -$0.28, reversing from +$0.06 in Q1 2025. That is a meaningful deterioration. The company has also been tapping convertible note financing repeatedly, raising $550,000 in gross proceeds earlier this week from L.I.A. Pure Capital Ltd. — a continuation of a pattern flagged across recent months. Repeated small convertible raises at this price level carry dilution risk that compounds the revenue headwind.
The earnings history reinforces the volatility around these prints. The April 2 event saw the stock bounce 8% on the day and 16% over five days. The March 30 event, by contrast, hit -28% on the day and -36% over five days. That swing matters: two adjacent prints produced opposite 30-plus-percent moves, suggesting pricing around results is highly path-dependent and liquidity-driven rather than fundamentals-driven. Today's Q1 print, with revenue well below the prior year, adds to the bear case that has been building since early spring.
Ownership is heavily concentrated. The top three holders — CEO Oren Shuster, Ran Molho, and Rafael Gabay — collectively control just under 30% of shares. There are no institutional buyers of scale in the register; the largest dedicated institutional holder holds roughly 0.4% of shares. That concentration means the stock can move sharply on thin volume, and it partly explains why short interest swings have been so dramatic in percentage terms despite small absolute share counts.
Peers in the small-cap cannabis and pharma space were broadly weak this week. CTXR fell 11% on the week, MRMD was down nearly 10%, and SNDL slipped 1.4%. Against that backdrop, IMCC's 5.6% weekly decline is in line with sector pressure. The question heading into next week is how the market digests today's Q1 print — the stock has already absorbed some of that news today, but the five-day reaction window historically carries as much weight as the immediate move.
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