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Monday, April 19, 2021

iAnthus Capital Holdings Inc (OTCMKTS: ITHUF) Soars on MPX Merger News

iAnthus Capital Holdings Inc (OTCMKTS: ITHUF) has been on the rise since announcing pursuant to which iAnthus will combine with cannabis Company MPX International in an all-stock transaction with offered equity consideration to MPX shareholders valued at $835 million before giving effect to MPX International and assuming all of MPX’s dilutive securities are exercised prior to the completion of the transaction. The Agreement represents the first public to public merger transaction in U.S. cannabis history.

Cannabis is booming; according to a recent report from Arcview Market Research and its research partner BDS Analytics, over the next 10 years, the legal cannabis industry will see much progress around the globe and spending on legal cannabis worldwide is expected to hit $57 billion by 2027. The adult-use (recreational) market will cover 67% of the spending; medical marijuana will take up the remaining 33%. The largest group of cannabis buyers will be in North America, going from $9.2 billion in 2017 to $47.3 billion a decade later. Of course much of this hinges on how laws progress

iAnthus Capital Holdings Inc (OTCMKTS: ITHUF) delivers a comprehensive solution for financing and managing licensed cannabis cultivators, processors and dispensaries throughout the United States. The Company owns and operates best-in-class licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry. Founded by entrepreneurs with decades of experience in operations, investment banking, corporate finance, law and health care services, iAnthus provides a unique combination of capital and hands-on operating and management expertise. The Company uses these skills to support operations across six states.

iAnthus Capital wholly owned subsidiary, Mayflower Medicinals is a licensed medical cannabis provider in the state of Massachusetts. Mayflower cultivates and manufactures world-class cannabis products out of its 36,000 square-foot, state-of-the-art production facility in Holliston, MA, and dispense these products from three strategically placed retail locations throughout the state. Only 24 dispensaries have opened within the last four years in Massachusetts, which provides an attractive competitive landscape for Mayflower’s market entry.

Recently Mayflower received final authorization from Department of Health and began operations at 36,000 square foot cultivation and processing facility at Holliston. The first harvest, extraction, and processing cycle initiated in April 2018.

The flagship Harvard Avenue dispensary in the Allston neighborhood of Boston is completed and staffed and pending final regulatory approval, the dispensary expects to open in Q2 2018 to medical patients with a full suite of products, including flower, pre-pack flower, concentrates, vape pens, tinctures and edibles. Two other dispensary locations have been secured through lease and option to lease agreements, with full details to be provided pending final regulatory approval.

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Earlier this month iAnthus Capital closed a bought deal offering of 5,188,800 common shares of the Company at a price of $6.65 per Common Share for aggregate gross proceeds to the Company of $34,505,520. The syndicate for the Offering was led by GMP Securities L.P. and included Canaccord Genuity Corp., Cormark Securities Inc., Beacon Securities Limited, Echelon Wealth Partners Inc. and PI Financial Corp.

On October 18 iAnthus Capital and MPX Bioceutical Corporation announced both companies have signed an arrangement agreement pursuant to which iAnthus will combine with MPX in an all-stock transaction with offered equity consideration to MPX shareholders valued at $835 million before giving effect to MPX International and assuming all of MPX’s dilutive securities are exercised prior to the completion of the transaction. The Agreement provides that MPX shareholders will be entitled to receive 0.1673 common shares of iAnthus for each common share of MPX held. The Agreement represents the first public to public merger transaction in U.S. cannabis history.

The combined company, excluding MPX International, will encompass operations and cannabis licenses in 10 states that will permit iAnthus to operate 56 retail locations and 14 cultivation/processing facilities. As a result of the transaction, iAnthus will add retail and/or production capabilities in Arizona, Maryland, Nevada, California and Massachusetts. These additional licenses complement iAnthus’ existing assets in New York, Florida, Massachusetts, Vermont, Colorado, and New Mexico, forming super-regional footprints in both the eastern and western United States.

“This is a watershed moment for iAnthus, as we nearly double the size of our national footprint in the United States. iAnthus will be uniquely positioned for success on the U.S. East Coast, while solidifying our cultivation and retail presence with the additions of California, Nevada, Maryland and Arizona,” said Hadley Ford, CEO of iAnthus. “Since its inception, iAnthus has been strategically focused on building scale, and this announcement crystallizes our positioning as one of the largest multi-state operators in North America.”

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Currently trading at a $278 million market valuation iAnthus Capital has $27 million in the treasury and manageable debt with just $10 million in current liabilities. iAnthus Capital is quickly establishing itself as a serious player in the recreational cannabis sector. The recently announced merger with MPX will result in the combined Company with operations and cannabis licenses in 10 states that will permit iAnthus to operate 56 retail locations and 14 cultivation/processing facilities. As a result of the transaction, iAnthus will add retail and/or production capabilities in Arizona, Maryland, Nevada, California and Massachusetts. Closing remains subject to approval of the shareholders of MPX, court approval, as well as the approval of the CSE, applicable regulatory approvals. Currently no date has been set on the transaction. We will be updating on iAnthus Capital when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with iAnthus Capital.

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Disclosure: we hold no position in ITHUF either long or short and we have not been compensated for this article.

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