iAnthus Capital Holdings (CSE: IAN) has closed its much anticipated third tranche of financing with that of Gotham Green Partners. The financing takes the form of US$36.15 million in senior secured convertible notes, which will be utilized towards the buildout of existing markets in which iAnthus currently operates.
The $36.15 million financing will see Gotham Green and certain additional co-investors lend the funds to iAnthus via convertible notes. The notes will bear interest at a rate of 13% per annum, which is payable quarterly. The notes mature May 14, 2021, and may be subjected to a twelve month extension at the discretion of iAnthus. The notes convert at a price of $1.61 per common share, which is a 25% premium to the closing price this past Wednesday.
The notes have been issued with $18.08 million in attached three year warrants, which have a conversion price of $1.67 per common share.
In a limited financing market, the continued support from one of the cannabis sector’s largest investors and a fully-financed capital plan are core differentiators for iAnthus. We are on the road to EBITDA positive and operational free cash flow positive in 2020, and the support from GGP will allow us to focus entirely on continued operational execution.Julius Kalcevich, Chief Financial Officer of iAnthus
The issuance of convertible notes to Gotham Green Partners is part of a $100 million financing arrangement with the capital firm that was announced in September. Collectively, $56.15 million of the total arrangement has not been subscribed to. Gotham Green has now lead investments totalling over $106 million into iAnthus.
iAnthus Capital Holdings last traded at $1.73 on the CSE.
Information for this briefing was found via iAnthus Capital. The author has no securities or affiliations related to these organizations. 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.