ITHUF - iAnthus Gets $11 Million For New Jersey Facility
iAnthus (OTC: ITHUF) stock popped over 57% to lately sell at 29 cents after the company was able to close on an $11 million bridge financing funded by certain lenders affiliated with the counterparties to the previously announced restructuring support agreement dated July 10, 2020. They are the holders of all of the 13% senior secured convertible debentures issued by iAnthus Capital Management, LLC and the holders of 91% of the principal amount of 8% convertible unsecured debentures issued by iAnthus.
Randy Maslow , Interim Chief Executive Officer and President of the Company said in a statement, “We are very pleased to have closed this bridge note financing. The net proceeds from the financing will be used exclusively for our operations in New Jersey for the continued construction and completion of improvements at our New Jersey cultivation, manufacturing, and dispensary facilities. We expect to sublease these facilities to MPX NJ once construction is complete and the facilities are ready to commence licensed operations.”
MPX NJ Battle
The battle between MPX New Jersey and iAnthus NJ continues even as iAnthus secured the financing. which will be used primarily for the construction and improvements of certain New Jersey facilities leased and/or owned by iAnthus NJ. These facilities are expected to be subleased to MPX New Jersey, with which the company has entered into several contractual agreements as described below. These facilities include the cultivation and manufacturing facility currently under construction in Pleasantville and the current dispensary located in Atlantic City , as well as two prospective satellite dispensaries expected to be leased and/or purchased and improved by iAnthus NJ pursuant to satellite approval applications filed with the New Jersey Department of Health on December 31, 2020 .
MPX NJ believes it is solely authorized to represent its interests to state and local officials and other parties and that Beth Stavola is principally responsible for the management and operations of MPX NJ. MPX doesn’t want iAnthus speaking for the company and so far The Superior Court of New Jersey has preliminarily entered an Order, with ICM’s and iAnthus NJ’s consent, granting temporary restraints that: (i): enjoin ICM and iAnthus NJ from entering into contracts that would bind MPX NJ; (ii) enjoin ICM and iAnthus NJ from representing that iAnthus currently has a controlling interest in MPX NJ and that any future control is subject to approval by the New Jersey Department of Health; and (iii) require ICM and iAnthus NJ to disclose to MPX NJ all contracts and activities taking place at the Pleasantville, New Jersey cultivation facility and to obtain the consent of MPX NJ for any construction that takes place in regulated cultivation areas of the facility.
iAnthus disputes the allegations of the Complaint and disputes that it ever engaged in the conduct that was the subject of the temporary restraints in the first place.
Shareholder Battle
Last week, the company announced that in a unanimous decision, the British Columbia Court of Appeal dismissed the appeal of Walmer Capital Limited, Island Investments Holdings Limited, and Alastair Crawford of the order of the Supreme Court of British Columbia made October 5, 2020, approving a plan of arrangement to implement the Company’s previously announced recapitalization transaction. Thus, effectively ending the shareholder fight.