iAnthus Capital Holdings, Inc. IAN ITHUF released its second-quarter financial report Thursday, revealing revenue of $54.2 million, up by 57% from $36.65 million in the same quarter of 2020.
The multi-state cannabis operator further posted a net loss of $15.3 million, or a loss of $0.09 per share, which compares to a loss of $24.8 million, or a loss of $014 per share in the corresponding period of the prior year.
Adjusted EBITDA for the quarter was a gain of $13.5 million, up from $0.7 million in the same period last year, while gross profit reached $31.3 million, representing a 66% improvement from the same quarter of 2020.
Gross Margin was 57.7%, up by 3.2% from 54.5% in the same period of the previous year.
Recent Operational Milestones – Recapitalization Transaction
The Toronto and New York-headquartered company was unable to make interest payments on its 13% senior secured convertible debentures and its 8% convertible unsecured debentures due in 2020, because of certain liquidity limitations.
This caused an “event of default” in relation to these components of the company’s debt, which at the end of June contained 1) principal amounts at face value of $97.5 million and $60; 2) accrued interest of $22.9 million on the secured notes; and 3) accrued interest of $7.2 million on unsecured debentures.
Consequentially, the company accrued extra fees and interest of $14.6 million in excess of the abovementioned amounts.
In July 2020, iAnthus entered into a restructuring support agreement with holders of its secured notes and a majority of the holders of its unsecured debentures to “effectuate a proposed recapitalization transaction.”
Under the recapitalization transaction, iAnthus is supposed to issue a total of 6.07 million common shares upon the liquidation of 1) $22.5 million of secured notes, 2) $40.0 million of unsecured debentures, and 3) interest accrued above the principal amount of $14.7 million of the financing enabled by the secured lenders.
So far, the company has obtained several approvals necessary to complete the recapitalization transaction but still needs others from states such as Florida, New York and New Jersey to name a few.
The lenders and consenting debentures holders approved the change of the due date to implement the plan of arrangement. It has been moved to August 31 from June 30.
Price Action
iAnthus shares were trading 3.94% higher at 18 cents per share at the time of writing Tuesday early afternoon.
Photo: Courtesy of Tim Foster on Unsplash
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