Multi-state operator iAnthus Capital Holdings
The senior secured debt financing will be dished out in two tranches of $25 million and they each carry similar terms. iAnthus will use the cash injection to expand its footprint in Florida’s medical marijuana industry and build out Be. retail sites in New York, New Jersey and Nevada.
Earlier this year, the firm unveiled plans to consolidate its entire estate of retail outlets under the new Be. national brand. At the time it had 21 operational sites and licenses to launch a further 47, bringing the total empire to 68 stores.
They previously traded under brands including Citiva, Mayflower, and Health For Life, but iAnthus felt that consolidating its network of stores under a single brand would have a greater impact in the marketplace. It has been working hard on expanding the estate of operational stores since then, and this debt deal will accelerate its plans.
Chief Executive Hadley Ford said reducing the company’s cost of capital has been a key goal this year. “We believe this is a great opportunity to add strength to our balance sheet as we continue to invest in our key expansion initiatives, along with people, systems, and brands,” he said. “This transaction will position us well as we continue our strategic investments to take advantage of the once-ever opportunity presented by the cannabis industry.”
The loan is secured by a first-priority lien on current and future assets and guaranteed by future affiliates. Each tranche bears interest at an annual rate of 9%, payable quarterly in arrears, maturing 36 months after they are issued.
Upon completion of each tranche, Torian Capital will be issued share purchase warrants for an amount equal to 20% coverage of each tranche. They have an exercise price equal to a 25% premium to the closing price of iAnthus’ common shares on the CSE on the day prior to the applicable closing of the relevant tranche.
iAnthus Capital Holdings is a market awareness client of Capital 10X.
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