NEW YORK and TORONTOFeb. 2, 2021 /PRNewswire/ – iAnthus Capital Holdings, Inc. (“iAnthus” or the “Company”) (CSE: IAN) (OTCPK: ITHUF), which owns, operates and companions with regulated cannabis operations throughout the United States, proclaims that it has closed an $11 million bridge financing (the “Financing”) funded by sure lenders (collectively, the “Lenders”) affiliated with the counterparties to the beforehand introduced restructuring assist settlement dated July 10, 2020, being the holders of the entire 13% senior secured convertible debentures issued by iAnthus Capital Management, LLC (“ICM”) and the holders of 91% of the principal quantity of 8% convertible unsecured debentures issued by the Company.

The Company’s wholly-owned subsidiary, iAnthus New Jersey, LLC (“iAnthus NJ”), has issued $11 million mixture principal quantity of senior secured bridge notes (the “Secured Notes”), due February 2, 2023, topic to an earlier maturity within the occasion the Company completes an fairness financing leading to at the very least $10 million in internet proceeds to the Company. The Secured Notes will accrue curiosity on the charge of 14.0% each year (lowering to 8.0% upon completion of the Company’s beforehand introduced recapitalization transaction (the “Recapitalization Transaction”)), payable quarterly, in form, commencing on March 31, 2021. The Secured Notes are secured by a safety curiosity in the entire property of iAnthus NJ. The Company has supplied a assure in respect of the entire obligations, indebtedness and liabilities of iAnthus NJ underneath the Secured Notes.

The proceeds of the Financing, internet of charges, prices and bills associated to the Financing, will probably be used primarily for the development and enhancements of sure New Jersey amenities leased and/or owned by iAnthus NJ.  Upon completion of building and prior to graduation of operations, such amenities are anticipated to be subleased to MPX New Jersey, LLC (“MPX NJ”), a medical cannabis allow holder in New Jersey with which the Company has entered into a number of contractual agreements as described under.  These amenities embrace the cultivation and manufacturing facility at present underneath building in Pleasantville and the present dispensary positioned in Atlantic City, in addition to two potential satellite tv for pc dispensaries anticipated to be leased and/or bought and improved by iAnthus NJ pursuant to satellite tv for pc approval functions filed with the New Jersey Department of Health on December 31, 2020.

Randy Maslow, Interim Chief Executive Officer and President of the Company acknowledged: “We are very pleased to have closed this bridge note financing. The net proceeds from the financing will be used exclusively for our operations in New Jersey for the continued construction and completion of improvements at our New Jersey cultivation, manufacturing and dispensary facilities. We expect to sublease these facilities to MPX NJ once construction is complete and the facilities are ready to commence licensed operations.”

The Company’s iAnthus NJ subsidiary, pursuant to a mortgage settlement with MPX NJ dated October 24, 2018, has the fitting to convert the principal stability of the loans and accrued curiosity thereon right into a 99% fairness curiosity in MPX NJ topic to sure regulatory approvals. In addition, pursuant to an possibility settlement of the identical date with MPX NJ and its then present equityholders, iAnthus NJ has an possibility to purchase the remaining 1% of MPX NJ for nominal consideration, topic to sure circumstances and approvals.

All references to foreign money on this information launch are in U.S. {dollars}.

Certain of the Lenders (funds affiliated with Gotham Green Partners, LLC) could also be thought of “related parties” as such time period is outlined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Accordingly, the Financing could also be a “related party transaction” as outlined in MI 61-101. The Company will depend on the exemption from the formal valuation requirement at Section 5.5(b) of MI 61-101 (Issuer Not Listed on Specified Markets) in respect of the Financing, and the exemption from minority approval requirement at Section 5.7(1)(f) of MI 61-101 (Loan to Issuer, No Equity or Voting Component) in respect of the Financing. The Company didn’t file a fabric change report 21 days prior to the anticipated closing of the Financing because the construction of the transaction and particulars of the participation of the Lenders had not been confirmed at the moment. Due to the Company’s liquidity constraints, the Company believes it’s affordable and crucial within the circumstances to full the Financing inside the accessible financing home windows.

About iAnthus

iAnthus owns and operates licensed cannabis cultivation, processing and dispensary amenities all through the United States. For extra info, go to www.iAnthus.com.

COVID-19 Risk Factor

The Company could also be impacted by enterprise interruptions ensuing from pandemics and public well being emergencies, together with these associated to COVID-19. An outbreak of infectious illness, a pandemic, or an identical public well being risk, such because the current outbreak of COVID-19, or a concern of any of the foregoing might adversely affect the Company by inflicting working, manufacturing, provide chain, and challenge growth delays and disruptions, labor shortages, journey, and transport disruption and shutdowns (together with because of authorities regulation and prevention measures). It is unknown whether or not and the way the Company could also be affected if such a pandemic persists for an prolonged time frame, together with because of the waiver of regulatory necessities or the implementation of emergency laws to which the Company is topic. Although the Company has been deemed important and/or has been permitted to proceed working its amenities within the states by which it cultivates, processes, manufactures, and sells cannabis in the course of the pendency of the COVID-19 pandemic, there is no such thing as a assurance that the Company’s operations will proceed to be deemed important and/or will proceed to be permitted to function. The Company might incur bills or delays relating to such occasions exterior of its management, which might have a fabric hostile affect on its enterprise, working outcomes, monetary situation, and the buying and selling value of the Company’s frequent shares.

Forward Looking Statements

Statements on this information launch which might be forward-looking statements are topic to numerous dangers and uncertainties, together with regarding COVID-19 and the precise components disclosed right here and elsewhere in iAnthus’ periodic filings with Canadian securities regulators. When used on this information launch, phrases comparable to “will”, “hope”, “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “believe”, “should”, “our vision” and comparable expressions, are forward-looking statements.

Forward-looking statements might embrace, with out limitation, statements associated to: the Company’s monetary efficiency, enterprise growth and outcomes of operations, the usage of proceeds from the Financing and the sublease of amenities to MPX NJ.

Readers shouldn’t place undue reliance on forward-looking statements. The forward-looking statements on this information launch are made as of the date of this launch. iAnthus disclaims any intention or obligation to replace or revise such info, besides as required by relevant legislation, and that iAnthus doesn’t assume any legal responsibility for disclosure relating to every other firm talked about herein.

The Canadian Securities Exchange has not reviewed, permitted or disapproved the content material of this information launch.

The securities to be issued pursuant to the Restructuring Transaction haven’t been and won’t be registered underneath the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities legal guidelines and will not be supplied or bought inside the United States or to U.S. individuals until registered underneath the U.S. Securities Act and relevant state securities legal guidelines, or an exemption from such registration is accessible.  This information launch doesn’t represent a suggestion to promote or a solicitation of a suggestion to purchase any securities.  “United States” and “U.S. person” are as outlined in Regulation S underneath the U.S. Securities Act.

SOURCE iAnthus Capital Holdings, Inc.

Related Links

https://www.ianthus.com/

Source link