iAnthus Secures $50m Loan Deal to Accelerate National Expansion

Multi-state operator iAnthus Capital Holdings has secured a $50 million loan from Torian Capital to boost expansion efforts across the U.S.

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.

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.

Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live.

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