iAnthus Announces Further Financing From Gotham Green Partners

iAnthus Capital Holdings (CSE: IAN) announced this morning that it has secured up to US$100 million in additional financing. The funding comes in the form of senior secured convertible notes through long time partner Gotham Green Partners.

The financing is set to occur in several tranches, of which the first consists of US$20 million. The senior secured notes bear interest at a rate of 13% per annum, which is payable quarterly, and mature on May 14, 2021. The conversion price is set at US$1.89, which represents a 25% premium over Friday’s close. iAnthus has an option to extend the maturity date by a year, however details wer not provided on what the cost of such an extension is.

Warrant coverage to the tune of $10 million was also included as part of a financing. The warrants have an expiry date of three years from the date of issuance, with a conversion price of $1.97.

As per the purchase agreement, Gotham Green Partners has the right to purchase an additional $66.5 million in notes, for a total of $86.5 million overall. Those notes would have substantially the same terms and conversion rights, subject to the policies of the exchange. The remaining $13.5 million would be subject to new terms in the context of the market should Gotham Green wish to fulfill the financing entirely.

The news of iAnthus’ financing comes on the heals of The Deep Dive highlighting the trouble that firms have had, including iAnthus Capital, with closing transactions with Torian Capital and other venture funds. The sector has seen a rapid decline in available funding sources as the hype begins to wear off and operational success becomes a priority. The ability of iAnthus to find additional sources of funding despite this sector sentiment acts as a testament to their ability as operators.

Gotham Green Partners originally provided financing to iAnthus Capital back in May 2018, when the fund invested a total of US$50 million into the firm. That transaction came in the form of senior secured convertible notes, as well as common share units.

iAnthus Capital Holdings closed Friday’s session at $2.01 on the Canadian Securities Exchange.


Information for this briefing was found via Sedar and iAnthus Capital Holdings. 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.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

iAnthus Capital Fails To Meet Self Imposed Filing Deadline Again

In a move surprising pretty well no one, iAnthus Capital Holdings (CSE: IAN) failed to...

Wednesday, July 1, 2020, 10:09:49 AM

A Hard Look at iAnthus’ Investor Relations Disaster

Last week, investors of the cannabis sector were privy to a prime example of why...

Monday, June 17, 2019, 07:00:44 AM

iAnthus Capital Sees Beth Stavola Resign From Company

iAnthus Capital Holdings (CSE: IAN) last night announced that Elizabeth (Beth) Stavola has resigned from...

Wednesday, August 5, 2020, 08:00:00 AM

iAnthus Hits $120M Pro-Forma Revenue Run Rate

This evening iAnthus Capital Holdings (CSE: IAN) released quarterly earnings. The company showed strong top-line...

Wednesday, November 20, 2019, 08:08:18 PM

iAnthus Approved To Enter Adult Use Massachusetts Market

iAnthus Capital Holdings (CSE: IAN) will be proceeding with adult-use operations in the state of...

Friday, January 24, 2020, 08:08:17 AM