iAnthus Reports Falling Revenue As Shareholders Get Another Chance - Grow Life 420

iAnthus Reports Falling Revenue As Shareholders Get Another Chance

November 09, 2021

#KahliBuds #MMJ #CBD #THC

After the markets closed on Monday, iAnthus Capital Holdings, Inc. (OTC: ITHUF) reported its financial results for the quarter ending September 30, 2021. Revenue for the third quarter was $49.3 million, up 21% from the same quarter in the prior year, but it dropped 9% sequentially. The net loss was $15.8 million, or a loss of $0.09 per share, compared to a net loss of $25.5 million, or a loss of $0.15 per share, in the same quarter in the prior year.

Debt Payments Not Made

iAnthus said it did not make the applicable interest payments due on its 13% senior secured convertible debentures and its 8% convertible unsecured debentures due during 2020. As previously disclosed, the non-payment of interest in March 2020 triggered an event of default with respect to these components of the company’s long-term debt, which, as of September 30, 2021, consisted of principal amounts at face value of $97.5 million and $60.0 million, and accrued interest of $26.9 million and $8.4 million, on the Secured Notes and Unsecured Debentures, respectively. In addition, as a result of the default, as of September 30, 2021, the company has accrued additional fees and interest of $15.0 million in excess of the aforementioned amounts that are further detailed in the company’s financial statements.

Update on Class Action Suit

Shareholders weren’t very happy with the restructuring agreement that occurred in July 2020 that effectively took their shares and gave them to the creditors. On September 1, 2021, iAnthus announced the dismissal of the previously disclosed consolidated actions (which included the shareholder class action claim and a complaint filed by Hi-Med) in the United States District Court for the Southern District of New York. The plaintiffs though were granted the right to file a proposed second amended complaint by September 30, 2021. Each plaintiff moved for leave to file second amended complaints, and the Court granted the plaintiffs’ motions for leave to file second amended complaints. iAnthus said it will continue to vigorously defend its interests in court.

Still Waiting On States

In addition, the regulatory approvals by state-level regulators in MassachusettsNew York and Maryland necessary to close the Recapitalization Transaction remain outstanding. In New Jersey, a change of control approval is not required at the present time because the company is awaiting approval by the Cannabis Regulatory Commission (“CRC”) for the Company to close its acquisition of 100% of the equity interests in New Jersey license holder MPX New Jersey, LLC, pursuant to certain contractual agreements. The company said it has a reasonable expectation that approval of the Amended Permit Application will be listed for consideration by the CRC on its monthly agenda in the next sixty (60) days or sooner and, upon any such approval thereof and the closing of the acquisition within no later than five (5) business days thereafter, as set forth in the Agreements, prior regulatory approval for the change of beneficial ownership of MPXNJ that would result from the Recapitalization Transaction will be required as a condition to closing under the Restructuring Support Agreement.

The post iAnthus Reports Falling Revenue As Shareholders Get Another Chance appeared first on Green Market Report.


via www.KahliBuds.com

Debra Borchardt, KahliBuds, 420GrowLife

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