iAnthus Capital Holdings (CSE: IAN) has evidently seen shareholders approve the highly contested recapitalization transaction. While the company has not released official results on the matter, several shareholders whom were on the virtual meeting have reported that 68% of shareholders approved the transaction, providing the figure required to continue to the next step of the process.
While 68% of the firms shareholders have reportedly approved the transaction, social sentiment on the matter indicates a large frustration remains with management regarding the transaction. Members of a dedicated iAnthus investor Facebook group have already heavily discussed their disdain with the results. Others, meanwhile, have looked to provide answers on why the transaction was ultimately approved despite the sentiment towards denying the transaction from occurring.
Evidently, the opposing shareholders will now be looking to regain an edge via the fairness hearing that is set to take place September 25, 2020 in front of a judge. Whether that effort will be successful or not is currently up to interpretation.
iAnthus’ recapitalization plan has been heavily contested as a result of what prior shareholders will remain with should the transaction ultimately be approved. Upon approval, only 2.75% of the company would remain in the hands of shareholders, while the secured lenders of the company, such as Gotham Green Partners, along with the unsecured debenture holders would each own 48.625% of the issuer. The company also indicated that in the event that the transaction would not be approved, the two groups of lenders would each be privy to 50% of the asset, while shareholders would receive nothing at all – a claim that has been heavily contested by the shareholders group, on the basis that more value exists within the firm than that of the debt.
iAnthus Capital Holdings has yet to officially publish the results of the meetings conducted today.
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.
