<PAGE>   1





                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D. C. 20549

                                   FORM 10-Q

               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended                                     Commission File Number
   March 31, 1997                                                  0-7693       
---------------------                                     ----------------------



                      INTERNATIONAL MERCANTILE CORPORATION
             (Exact name of Registrant as specified in its charter)

       Missouri                                            43-0970243           
---------------------------                                ---------------------
(State or other jurisdiction                               (IRS Employer
of Incorporation of                                        Identification
Organization)                                              Number)

7979 Old Georgetown Road, Bethesda MD                      20814      
------------------------------------                       ----------
(Address of principal executive offices)                   (Zip Code)

                                 (301) 654-1980
                                 --------------

          Securities Registered Pursuant to Section 12(g) of the Act:
                    Common Stock, par value $1.00 per share
                    ---------------------------------------
                                (Title of Class)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past (90) days.

                           Yes           No    X
                               -----        -----

        Number of shares of Common Stock Outstanding December 31, 1996

                                  3,133,315
                                  ---------
<PAGE>   2





                      INTERNATIONAL MERCANTILE CORPORATION

                                        
                               QUARTERLY REPORT

                             AS OF MARCH 31, 1997




                                    PART -1
                             FINANCIAL INFORMATION





                         ITEM 1- FINANCIAL INFORMATION




                      INTERNATIONAL MERCANTILE CORPORATION

                                 March 31, 1997
<PAGE>   3




                     INTERNATIONAL MERCANTILE CORPORATION
                                BALANCE SHEETS
                             AS OF March 31,1997
                                 (UNAUDITED)



<TABLE>
<CAPTION>
             ASSETS
             ------                                            YEAR ENDED
                                                               DECEMBER 31,
                                                MARCH 31,1997     1996    
                                                -------------  ----------
             <S>                                  <C>          <C>
             Cash                                      -              -
             Other Receivables                         -              -

             TOTAL ASSETS                         $    -        $     -  
             ------------                         =========     =========



<CAPTION>
             LIABILITIES AND STOCKHOLDERS' EQUITY DEFICIENCY
             -----------------------------------------------
                                                    MARCH 31       1996   
                                                  -----------  -----------
             <S>                                  <C>          <C>
             LIABILITIES
             Mortgage and Notes Payable              57,494        57,494

             Due to Related Parties                 380,263       180,263

             Other Liabilities                       75,638        75,638
                                                  -----------  -----------

                  TOTAL LIABILITIES                 513,395       313,395
                                                  -----------  -----------

             STOCKHOLDERS' EQUITY DEFICIENCY
             Common stock,
             $1 par value, 5,000,000
             shares authorized,
             3,133,151 shares
             issued and outstanding                3,133,151    3,133,151
             Capital in excess of par              5,326,394    5,326,394
             Deficiency                           (7,958,757)  (7,958,757)
                                                  -----------  -----------
                                                     500,788      500,788
             Less: Treasury stock at cost            814,183      814,183
                                                  -----------  -----------

             TOTAL STOCKHOLDERS' EQUITY
                            (DEFICIENCY)            (513,395)    (313,395)
                                                  -----------  -----------
             TOTAL LIABILITIES AND
             STOCKHOLDERS' EQUITY
             (DEFICIENCY)                         $      -     $      -  
             ------------                         ===========  ===========
</TABLE>

              Read accompanying notes to financial statements.
                                       2
<PAGE>   4





INTERNATIONAL MERCANTILE CORPORATION
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS MARCH 31, 1997

<TABLE>
<CAPTION>
                                               THREE MONTHS ENDING
                                                    MARCH 31
                                                       1997           1996  
                                               -----------------   ---------
<S>                                                  <C>           <C>
REVENUE                                              $     -            -

GENERAL AND
ADMINISTRATIVE                                             -            -     
                                                     -----------   ----------
LOSS BEFORE LOSS FROM SUBSIDIARIES
 AND LOSS ON DISPOSITION OF
 SUBSIDIARIES                                              -            -
LOSS FROM SUBSIDIARIES                                     -            -   
                                                     ----------    ----------

LOSS BEFORE LOSS ON DISPOSITION
 OF SUBSIDIARIES                                           -            -

LOSS ON DISPOSITION
OF SUBSIDIARIES                                            -            -   
                                                     ----------    ----------

NET LOSS                                             $     -            -    
--------                                             ========================


NET LOSS PER COMMON SHARE
-------------------------

NET LOSS BEFORE LOSS ON DISPOSITION
 OF SUBSIDIARIES                                     $       -          -

LOSS ON DISPOSITION OF
        SUBSIDIARIES                                         -          -   
                                                     -----------   -----------

NET LOSS                                             $       -          -    
--------                                             =========================


WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
------------------
                                                       3,133,151     3,133,151
                                                     ===========   ===========
</TABLE>




                Read accompanying notes to financial statements.
                                       3
<PAGE>   5





                      INTERNATIONAL MERCANTILE CORPORATION
                            STATEMENTS OF CASH FLOWS
                   FOR THE THREE MONTHS ENDED MARCH 31, 1997

<TABLE>
<S>          <C>
             CASH FLOWS FROM OPERATING ACTIVITIES:



              Net loss                                     $      -
              Adjustments to reconcile net loss
              to net cash (used in) provided by
              operating activities:

                Depreciation and amortization              $      -
                Loss on disposition of subsidiaries        $      -
                Loss on litigation settlement              $      -
                Loss on sale of property and
                 equipment                                 $      -
                Equity in net income (loss) of
                 affiliate
                 Changes in:
                 Other receivables                         $      -
                 Other liabilities                                -   
                                                           -----------

               Net Cash (Used in) Provided
                    by Operating Activities
                                                                  -   
                                                           -----------

             CASH FLOW FROM FINANCING ACTIVITIES:
              Payments on mortgage and notes                       
                                                                  -
             Advances from related parties
                                                                     
                                                           -----------

                  Net Cash Provided by (Used In)
                   Financing Activities
                                                                     
                                                           -----------

             (DECREASE) IN CASH                                    -
             CASH - BEGINNING OF YEAR                              -   
                                                           ------------

             CASH - END OF QUARTER                         $       -   
             --------------------------                    ============




             SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:


               Cash paid during QUARTER for:
                Interest                                   $       -   
                                                           ============
</TABLE>





                Read accompanying notes to financial statements.
                                       5
<PAGE>   6





                      INTERNATIONAL MERCANTILE CORPORATION
                            STATEMENTS OF CASH FLOWS
                              AS OF March 31, 1997


SUPPLEMENTAL SCHEDULE OF NON CASH INVESTING AND FINANCING ACTIVITIES:


OPERATIONS
The company continues to review merger candidates.



LIQUIDITY AND CAPITAL

There have been losses for the second quarter and liquidity remains very low. 
Cash flow from operations remains negative as they were for the previous year. 
There is no future revenue or liquidity expected from current operations.
<PAGE>   7





                         PART - 1 FINANCIAL INFORMATION

                   ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS
                  FINANCIAL CONDITION AND RESULTS OF OPERATION
                                 March 31, 1997


        The Company has suffered severe losses for the past six years.
Management has not been able to secure working capital for the Company from
outside debt or equity funding sources.

        Management has spent considerable time and effort to bring the Company's
public securities filings current to allow it to merge with, acquire or be
acquired by another company.  At this point in time management has several such
business combination candidates and plans to work aggressively in the area when
its filings are current.

        There is no cash flow from operations and unless the Company can
successfully develop relationships with financial sources and acquire an
operating company which can immediately generate cash flow from operations, no
cash flow is anticipated.

        HAMC ceased operations in 1995 and is currently inactive, the company
has been sold to Continent Finance Corporation.

        To bring operational capability and positive cash flow to IMC,
management will seek to acquire assets that will improve the overall financial
picture of the Company. Management plans to restructure the capital stock of the
Company by reducing the total number of outstanding common shares and
introducing new classes of stock.

        This plan of acquisition and reorganization should put the Company in a
better position to attract working capital from debt and equity sources.  There
is absolutely no assurance that any or all of these steps can be successfully
completed.  In the event that management fails to meet its goals, the Company
will not be a viable going concern and may face bankruptcy or liquidation.

        The Company has ongoing cash demands that are not being met.  Management
has agreed to be paid in stock to minimize the cash burden to the  Company. 
There are several advisors, consultants and professionals who are due fees, and
management plans to fulfill these responsibilities first since these advisors,
professionals and consultants are necessary to bring the Company's public
filings current and inject working capital and operational assets into the
Company.
<PAGE>   8


                      International Mercantile Corporation
                                 March 31, 1997
                           PART -2 OTHER INFORMATION
ITEM 1

EXECUTIVE COMPENSATION

        No cash compensation, including bonuses, was paid during the First
Quarter of 1997 by IMC to any of its executive officers. No fees were paid to
Board members for attending Board meetings during 1997 however all such fees,
expenses and compensation have been deferred on the books of the company in
accordance with the terms of the agreements signed by the company .  Shares of
the Company's common stock may be issued to its officers representing the fair
market value of services actually rendered by them without pay and as
reimbursement for expenses actually incurred by them in the performance of their
duties as officers of the Company.





SIGNATURES

PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
REGISTRANT HAS CAUSED THIS REPORT TO BE SIGNED ON IT'S BEHALF BY THE UNDERSIGNED
THEREUNTO DULY AUTHORIZED.



INTERNATIONAL MERCANTILE CORPORATION



/s/ MAX APPLE
-----------------
MAX APPLE
CHAIRMAN




/s/ GREG DUTCHER
-----------------
GREG DUTCHER
SECRETARY