ITHUF - iAnthus Revenue Rises 70% Still In Default
After the market closed on Monday, iAnthus Capital Holdings, Inc . (CSE: IAN) (OTC: ITHUF) reported its financial results for the three months ended March 31, 2021. iAnthus said that revenue rose 70% to $51.8 million . The net loss was $19.5 million , or a loss of $0.11 per share versus a loss of $236.3 million , or a loss of $1.38 per share, in the same quarter in the prior year.
The company noted that due to liquidity constraints it did not make applicable interest payments due on its 13% senior secured convertible debentures and its 8% convertible unsecured debentures due during 2020. The non-payment of interest in March 2020 triggered an event of default, which, as of March 31, 2021 , consisted of principal amounts at face value of $97.5 million and $60.0 million , and accrued interest of $19.0 million and $6.0 million , on the Secured Notes and Unsecured Debentures, respectively.
As a result of the default, iAnthus has accrued additional fees and interest of $14.2 million. Most shareholders are aware that in July 2020 iAnthus entered into a restructuring agreement with its debtholders to begin a proposed recapitalization transaction in Canada. However, some of the transactions that the company wants to undertake have triggered the requirement for approval by state-level regulators in certain U.S. states with jurisdiction over the licensed cannabis operations owned, in whole or in part by iAnthus in such states. In February , the Nevada Cannabis Compliance Board approved the proposed change of ownership and control of the company’s wholly-owned subsidiary, GreenMart of Nevada NLV, LLC, contemplated by the Recapitalization Transaction. Similar state-level regulatory approvals are being sought in Florida , Massachusetts , Maryland , New York , New Jersey , and Vermont .
If the Recap plan is consummated, iAnthus said it intends to issue up to an aggregate of 6,072,579,699 common shares upon the extinguishment of (i) $22.5 million of Secured Notes (including the Exit Fees), (ii) $40.0 million of Unsecured Debentures, including interest accrued thereon, and (iii) interest accrued on the interim financing in the amount of $14.7 million provided by the Secured Lenders.