iAnthus Capital Holdings (CSE: IAN) issued an update to its ongoing plan of arrangement related to settling its outstanding debts this morning. The company has been approved by the Supreme Court of British Colombia to conduct meetings among its secured note holders, its unsecured debenture holders, and its equity holders to vote on the proposed plan of arrangement under the previously announced recapitalization transaction.
The recapitalization transaction, notably, will result in current equity holders owning only 2.75% of the company if approved. A figure so small, that it has enraged a large portion of retail investors in the company, to the point that one group of members on Facebook has committed to collecting names to potentially challenge the transaction entirely.
It should be noted however that if the transaction is not approved, the recapitalization transaction will be implemented through CCAA proceedings instead, which will result in current debt holders taking the entirety of the company, while current equity holders will receive nothing of the resulting firm.
The meetings for the recapitalization transaction are to be held on September 14, 2020, virtually. Approval by at least 51% of the secured note holders and debt holders are required under the terms of the plan of arrangement. A 51% approval from equity holders is also required, however this excludes votes of common shares held or controlled by related shareholders.
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If the plan of arrangement is approved at the meetings, iAnthus will attend a hearing currently scheduled for September 25, 2020 to seek final court approval of the plan of arrangement.
iAnthus Capital Holdings remains halted 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.
