<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
   June 30, 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 JUNE 30, 1997




                                    PART -1
                             FINANCIAL INFORMATION





                         ITEM 1- FINANCIAL INFORMATION




                      INTERNATIONAL MERCANTILE CORPORATION

                                 June 30, 1997
<PAGE>   3

                     INTERNATIONAL MERCANTILE CORPORATION
                                BALANCE SHEETS
                              AS OF JUNE 30,1997
                                 (UNAUDITED)




<TABLE>
<CAPTION>
             ASSETS
             ------                                            YEAR ENDED
                                                              DECEMBER 31,
                                               JUNE 30, 1997      1996
                                               -------------  -------------
             <S>                                <C>            <C>
             Cash                                      -              -
             Other Receivables                         -              -

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


<CAPTION>
             LIABILITIES AND STOCKHOLDERS' EQUITY DEFICIENCY
             -----------------------------------------------


                                                    JUNE 30       1996   
                                                 ------------  ----------
             <S>                                <C>            <C>
             LIABILITIES
             Mortgage and Notes Payable              57,494        57,494

             Due to Related Parties                 580,263       180,263

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

                  TOTAL LIABILITIES                 713,395       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)            (713,395)    (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 SIX MONTHS JUNE 30, 1997

<TABLE>
<CAPTION>
                                             THREE MONTHS ENDING   SIX MONTHS ENDING
                                                    JUNE 30             JUNE 30
                                                     1997                 1997         
                                             -------------------   -----------------
<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 SIX MONTHS ENDED JUNE 30, 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 June 30, 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
                                 June 30, 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
                                 June 30, 1997
                           PART -2 OTHER INFORMATION
ITEM 1

EXECUTIVE COMPENSATION

             No cash compensation, including bonuses, was paid during the
Second 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