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