iAnthus Closes Third Tranche of Gotham Green Funding

iAnthus announced that they closed a $36.2 million senior secured convertible note with Gotham Green Partners. This funding is part of the earlier $100 million financing plan announced at the end of September.

The Terms

The notes have an annual coupon rate of 13%, payable quarterly and a maturity date in May 2021. iAnthus holds the right to extend the maturity date by 12 months.

The notes are exchangeable into common shares of the company at a conversion price of $1.61 (25% premium to Dec. 18 closing price). They also come with $18 million of attached three-year warrants with an exercise price of $1.67.

The additional notes issued under the remaining tranche(s) will have similar terms, provided the tranche is completed within 45 days.

Looking Forward

The fact that iAnthus can secure funding at a time when the doors to the capital markets have largely been shut speaks to the confidence of lenders in IAN’s operations.

CFO Julius Kalcevich reiterated that they are moving forward as planned, “We are on the road to EBITDA positive and operational free cash flow positive in 2020, and the support from GGP will allow us to focus entirely on continued operational execution.”

The company continues to maintain the stance their capital plan is fully-financed, including its recently announced developments with its Massachussett’s operations. 

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iAnthus Capital Holdings was a market awareness client of Capital 10X.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Evan Veryard
Evan Veryard has a Bachelor's of Chemical Engineering from McGill University and a MaSc. of Chemical Engineering from RMC. He has over 6 years of research experience focusing on industrial materials. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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