iAnthus Capital Holdings (CSE: IAN) this morning announced that it is acquiring additional assets in the state of Nevada. In total, the firm has acquired six new licenses in a $US27.6 million transaction that is expected to close in the first half of 2020.
The licenses consist of two retail, two cultivation, one processing, and one distribution license. The two retail licenses, which are currently operational, are located in Reno and Carson City under the Sierra Well brand. iAnthus intends to rebrand both locations to their “Be.” retail brand upon closing, following the nationwide roll out of the brand that is expected to commence next month.
In terms of cultivation capacity, the assets currently have 20,000 square feet of space growing and processing cannabis plants. The additional cultivation space brings iAnthus’ total grow space in the state to that of 50,000.
Total consideration of $27.6 million consists of a cash portion of $5.1 million, while the remainder is to be paid in the form of common shares. The $22.5 million in shares will be priced based on the ten day volume weighted price of the equity prior to closing. The assets are currently generating an annualized US$16 million in revenues, while claiming a 20% EBITDA margin and overall positive net income.
The acquisition will significantly expand iAnthus’ presence in the state, who has had a notably small stake within the recreational state. Total retail licenses will increase to six in the state, however the Sierra Well dispensaries are the only locations currently operating. Cultivation space will increase to that of 50,000 all of which is believed to be currently operational. The firm notes that MPX products currently have a strong presence in the state with products in over 40% of dispensaries.
iAnthus closed at $2.70 yesterday on the Canadian Securities Exchange, as it continues its tumble for reasons unknown. The retail-investor heavy equity has seen continuous share price depreciation despite continuous progress made by the firm operationally.
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.
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.