ITHUF - iAnthus Revenues Increase Despite Plodding Restructuring
iAnthus Capital Holdings, Inc . (CSE: IAN) (OTCPK: ITHUF) reported its financial results for the three ending June 30, 2021 as r evenue increased 57% to $ 54.2 million. The company trimmed its n et losses to $15.3 million , or a loss of $0.09 per share, versus a loss of $24.8 million , or a loss of $0.14 per share, in the same quarter in the prior year.
Despite a gross profit of $31 million, iAnthus did not make interest payments due on its 13% senior secured convertible debentures and its 8% convertible unsecured debentures due during 2020. As previously disclosed, the non-payment of interest in March 2020 triggered an event of default with respect to these components of the company’s long-term debt, which, as of June 30, 2021 , consisted of principal amounts at face value of $97.5 million and $60.0 million , and accrued interest of $22.9 million and $7.2 million , on the Secured Notes and Unsecured Debentures, respectively. In addition, as a result of the default, as of June 30, 2021 , the Company has accrued additional fees and interest of $14.6 million (“Exit Fees”) in excess of the aforementioned amounts that are further detailed in the company’s financial statements.
Restructuring Continues
In 2020, iAnthus entered into a restructuring support agreement that was amended on June 15, 2021 with the holders of its Secured Notes and a majority of the holders of its Unsecured Debentures to effectuate a proposed recapitalization transaction to be implemented by way of a court-approved plan of arrangement under the Business Corporations Act ( British Columbia ). The company is required to issue an aggregate of 6,072,579,699 common shares upon the extinguishment of (i) $22.5 million of Secured Notes (including the Exit Fees) plus interest accrued thereon, (ii) $40.0 million of Unsecured Debentures plus interest accrued thereon, and (iii) interest accrued above the principal amount of $14.7 million of the interim financing provided by the Secured Lenders.
iAnthus said in its statement that on February 23, 2021 , 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. On June 17, 2021 , the Massachusetts Cannabis Control Commission approved the proposed change of ownership and control of the current licenses held by the Company’s wholly-owned subsidiaries, Mayflower Medicinals, Inc., and Cannatech Medicinals, Inc. contemplated by the Recapitalization Transaction. Similar state-level regulatory approvals are being sought in Florida , Maryland , New York , New Jersey , and Vermont .