Market Overview

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

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.

Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.

"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. 

Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.

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


Related Articles (ITHUF)

View Comments and Join the Discussion!

Cannabis Movers

Sign up for our secret cannabis newsletter!
Never miss out on the breaking news in the Cannabis Industry!

White House's Navarro Calls Report Of Limiting US Investor Access To China 'Fake News'

Sell-Side: Wells Fargo's New CEO A Good Hire, But Don't Look For A Quick Fix