Ianthus Stock Price, News & Analysis

iAnthus Capital Holdings has filed an amendment to its Form 10 Registration Statement with the SEC, establishing itself as a fully reporting company. This amendment became effective on February 5, 2021, obligating iAnthus to file regular reports including 10-K, 10-Q, and 8-K, thereby enhancing transparency for investors. The Form 10 details the Company's operations, strategies, and financials. Despite pandemic-related risks that could disrupt operations, iAnthus remains licensed to operate. For more information, visit www.iAnthus.com.

iAnthus Capital Holdings has successfully closed an $11 million bridge financing, primarily intended for the construction and improvement of its cannabis facilities in New Jersey. The financing involves senior secured bridge notes with a 14% annual interest, decreasing to 8% after a recapitalization transaction. The net proceeds will support facilities expected to be subleased to MPX New Jersey. CEO Randy Maslow highlights the importance of this financing for operational expansion in the state.

iAnthus Capital Holdings reported its Q2 2020 financial results, revealing a net loss of $20.9 million or $0.12 per share. Revenue was $34.6 million, a 14% increase from the previous quarter, with a gross margin of 54.8%, up from 49.2% in Q1 2020. However, due to liquidity issues, the company did not make interest payments on its senior secured and unsecured debentures totaling $97.5 million and $60.0 million, respectively, resulting in an event of default. A recapitalization plan was approved by the British Columbia Supreme Court on October 5, 2020.

iAnthus Capital Holdings has received final approval from the Supreme Court of British Columbia for its recapitalization plan, initially approved by securityholders on September 14, 2020. The plan has been amended to refine the scope of claim releases. Both securityholder and court approvals are now satisfied, paving the way for closing the Recapitalization Transaction, subject to customary conditions. iAnthus operates regulated cannabis facilities across 11 states in the U.S., with 36 dispensaries. The company notes risks related to COVID-19 affecting operations.

iAnthus Capital Holdings provided an update on its recapitalization plan following a fairness hearing on September 25, 2020. Justice Gomery of the Supreme Court of British Columbia noted that while the plan met good faith requirements, the proposed release of claims was not approved. A possible amendment to the release language is encouraged. iAnthus must pursue the Recapitalization Transaction under the Companies' Creditors Arrangement Act if no final court order is granted by the extended deadline of October 6, 2020. The company operates licensed cannabis facilities across the U.S.

iAnthus Capital Holdings will attend a hearing on September 25, 2020, in Vancouver to seek court approval for its recapitalization transaction. This transaction aims to restructure the Company's debt and equity. The Secured and Unsecured Debentureholders have already approved the recapitalization, with unanimous support, while 79% of Equityholders voted in favor, surpassing the minority approval threshold. The approval process may involve state-level regulatory reviews in various U.S. states. The Company also notes potential disruptions from COVID-19 affecting its operations.

On September 14, 2020, iAnthus Capital Holdings announced overwhelming approval from Securityholders for a recapitalization transaction via a court-approved plan under British Columbia's Business Corporations Act. Secured Noteholders and Unsecured Debentureholders voted 100% in favor, while 79% of Existing Equityholders supported the plan, significantly exceeding minority approval requirements. A court hearing for final approval is scheduled for September 25, 2020. The transaction may require state-level regulatory review in various U.S. states where iAnthus operates.

iAnthus Capital Holdings (CSE: IAN, OTCQX: ITHUF) warns shareholders about misleading statements from a group of shareholders regarding its Recapitalization Transaction. The Company emphasizes that the Board unanimously supports the transaction, which has undergone a comprehensive strategic review. If not approved, iAnthus may face CCAA Proceedings, leading to no recovery for shareholders. The Board recommends a vote in favor of the Recapitalization Transaction to secure shareholder value. The Company has approximately US$135 million owed to secured lenders and US$63 million owed to debentureholders.

iAnthus Capital Holdings has initiated the mailing of notices and a management information circular for meetings involving holders of secured and unsecured debentures and common shares. The recapitalization transaction is crucial; existing shareholders may retain only 2.75% of common shares if the transaction proceeds under the British Columbia Business Corporations Act. Conversely, if conducted under the CCAA, existing shareholders will receive 0%. Voting deadlines for each group are set for September 10, 2020. The company emphasizes the importance of participation in these meetings.