iAnthus Capital Holdings (CSE: IAN) has filed a lawsuit in the Ontario Superior Court of Justice against a current lender, Oasis Investments II Master Fund Ltd, as a result of the lender allegedly interfering with fund raising efforts being conducted by iAnthus.
Oasis originally invested US$25 million into iAnthus back in March 2019, via an unsecured convertible debenture. In the time since closing, Oasis has allegedly repeatedly “agitated” iAnthus with unfounded allegations and self interest proposals as a means of bettering their investment within the company. Oasis has attempted to renegotiate the currently outstanding convertible debentures multiple times according to this mornings press release, alleging debt covenants have been breached and an event of default has occurred.
iAnthus believes that these claims are unfounded and vehemently disagrees with the claims that Oasis is making. Regardless, the claims have interfered with iAnthus attempts to conduct financings as well as the company’s business. The company as a result has engaged in a lawsuit to protect its stakeholders and shareholders.
After good faith efforts led by iAnthus’ management, it is highly regrettable that we have been forced to take this action against Oasis. Unfortunately, Oasis, which has a long history of taking activist measures to better its position through the courts and other means, has decided it would try the same tactics with iAnthus. We are disappointed with Oasis’ attempt to extract value at the expense of our shareholders and other stakeholders, and we will pursue any and all remedies available to us as a result of Oasis’ self-interested behavior. We are in active discussions with a variety of financing sources, including significant existing lenders and investors who continue to believe strongly in the prospects of both iAnthus and the broader industry,Julius Kalcevich, CFO of iAnthus
iAnthus Capital Holdings last traded at $1.33 on the CSE.
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.