It appears that the issuance of a cease trade order last night is the least of concerns for iAnthus Capital Holdings (CSE: IAN) and its shareholderholders. The company announced this morning that in addition to the order, the company has received a demand for repayment from Gotham Green Partners for its outstanding 13.0% senior secured debentures, along with a Notice of Intention to Enforce Security. In layman terms, it appears its all over for iAnthus.
The intention to secure assets from iAnthus by Gotham Green is largely a result of two failed interest payments by the multi state operator. The demand letter issued by the financier indicates that the entire principal amount of debt along with interest, fees, costs and other charges that have accrued must be paid immediately following the default of debt.
The subsequent Notice issued in respect of GGP’s intention to enforce security is being done under section 244 of the Bankruptcy and Insolvency Act in Canada. Security cannot be enforced “until the expiry of 10 days after sending the BIA Notices unless the Company and MPX consent to an earlier enforcement of the security.” Despite iAnthus not intending to consent to earlier enforcement, its likely that the MPX assets will be taken from the public vehicle as a result of the failure to pay.
With respect to the timing of the receipt of the letter, a date was not provided for when the letter was received.
The company has indicated that it still is continuing its strategic alternatives review process with that of Canaccord Genuity as its advisor, however no arrangement has been settled on. It’s stated that there have been “several expressions of interest .. which if completed, would repay the Secured Debentures in full and in cash.” However, given that the review process has been ongoing for nearly three months, its questionable whether funds will come through with only ten days at maximum before security is enforced by Gotham Green Partners.
iAnthus Capital last traded at $0.30 and is currently halted.
Information for this briefing was found via Sedar and iAnthus Capital Holdings Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.