iAnthus CEO Resigns After Board Flags Personal Loan Deal
The New York-based company announced Monday that co-founder Hadley Ford, who had been CEO since iAnthus launched in 2014, has resigned.
The iAnthus board of directors has appointed Randy Maslow as interim CEO.
The decision comes on the heels of a review conducted by a special committee of independent directors, which determined that Ford had "misused iAnthus' resources to his benefit."
Ford took out two undisclosed loans, totaling $160,000. The loans created "a potential or apparent conflict and should have been disclosed to the Board in a timely way," according to the committee.
Ford had entered into the loan agreement with the managing member of iAnthus' senior secured lender, Gotham Green Partners, a firm that company had inked a $36.2 million financing deal with back in December.
A day after the close, Ford had signed for a $100,000 interest-free loan that was due on March 31. Failure to disclose the personal loan violated iAnthus conflict policies.
Maslow, who co-founded iAnthus with Ford, takes over CEO duties effective immediately.
Maslow has served as the president and director of the company since its beginning, and is currently a member of the Federal Policy Council of the National Cannabis Industry Association and the Boards of Trustees of the Cannabis Trade Federation, the New Jersey Cannabis Industry Association and the New York Medicinal Cannabis Industry Association.
Before co-founding iAnthus, he was a veteran tech industry entrepreneur, senior executive, and attorney with over 25 years of experience as a general counsel to telecom and internet companies.
Ford previously worked on Wall Street at various firms, including Bank of America Securities and Goldman Sachs Group.
Canaccord Genuity is currently advising iAnthus on a strategic review.
Photo courtesy of iAnthus
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