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Gotham Green Partners Invests $20 Million In iAnthus As Part Of Larger Financing Plan

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Gotham Green Partners Invests $20 Million In iAnthus As Part Of Larger Financing Plan

iAnthus Capital Holdings, Inc. (CSE: IAN) (OTC: ITHUF), announced Monday that it has received an additional investment in the amount of $20 million from Gotham Green Partners.

The firm is buying senior secured convertible notes from iAnthus, the cannabis company said. It's part of the company’s $100-million financing plan to back the development of the markets in which iAnthus now operates.

The company’s subsidiary iAnthus Capital Management, LLC issued the notes with an annual coupon of 13%, payable quarterly, that will mature in May 2021.

The notes are exchangeable into the company’s common shares at a price of $1.89, a 25% premium to the Sept. 27 closing price.

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"We are pleased to be working with a leading financial investor in the U.S. cannabis sector. The new notes will allow us to build out operations in our key markets and continue to develop our retail and product brands," iAnthus CEO Hadley Ford said in a statement.

"We believe this level of support from GGP will fully fund the development of our existing assets and provide the necessary capital for iAnthus to achieve positive and sustainable EBITDA and operational free cash flow in 2020."

Jason Adler, managing member of Gotham Green Partners, said the company has viewed iAnthus as a key partner since its initial investment in May 2018. 

Shares of iAnthus were down 3.68% at $1.46 at the time of publication. 

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Posted-In: Gotham Green PartnersCannabis News Financing Markets Best of Benzinga

 

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