IAnthus 2021 Revenue Was $203 Million, But Still Not Paying Debts

 iAnthus Capital Holdings, Inc. (OTCPK: ITHUF) reported its financial results for the fourth quarter and year-ended December 31, 2021. In the fourth quarter, revenue rose 4% to $47.7 million. iAnthus also reported a net loss of $25.7 million, or a loss of $0.15 per share, compared to a loss of $26.7 million, or a loss of $0.16 per share, in the same quarter in the prior year.

 

iAnthus reported revenue rose 34% for the full year of 2021 to $203.0 million, up 34% from the prior year. The company also recorded a net loss of $76.2 million, or a loss of $0.44 per share, compared to a loss of $313.4 million, or a loss of $1.83 per share, in the prior year. 

 

Due to liquidity constraints, iAnthus said it did not make 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 December 31, 2021, consisted of principal amounts of $97.5 million and $60.0 million, and accrued interest of $30.9 million and $9.6 million, on the Secured Notes and Unsecured Debentures, respectively. In addition, as a result of the default, as of December 31, 2021, the company has accrued additional fees and interest of $15.4 million in excess of the aforementioned amounts that are further detailed in the company’s financial statements.

 

After the quarter ended, on January 7, 2022, the New Jersey Cannabis Regulatory Commission approved iAnthus New Jersey, LLC’s acquisition of 100% of the equity interests of New Jersey license holder MPX New Jersey, LLC. On February 1, 2022, the company closed on its acquisition of MPX NJ.

 

Delayed Annual Meeting

 

The company still hasn’t held its annual meeting from 2020  and when the BC Registrar declined the company’s request to delay it again, iAnthus filed an appeal. The company wants an extension to June 30, 2022 or some later date. With regards to the 2021 annual meeting, that deadline was extended to June 30, 2022. 

 

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.


2 comments

  • joseph shane

    April 19, 2022 at 6:19 pm

    Is there any current information on iAnthus and Gotham Green and the courts allowing iAnthus the right to find new financing to pay off Gotham…….thanks

    Reply

    • Debra Borchardt

      April 19, 2022 at 6:39 pm

      In March 2022, iAnthus Capital Holdings Inc. and private equity firm Gotham Green Partners again urged a New York federal court to toss a pair of shareholders’ securities fraud suits, saying the claims should be litigated in Canada and are meritless anyway. Silva, who is represented by lead counsel Pomerantz LLP, claimed he lost more than $2.2 million in a purported scheme in which iAnthus tried to use the COVID-19 pandemic to explain away a missed $4.4 million interest payment. He wants to represent a class that includes anyone other than the defendants who acquired iAnthus securities between May 14, 2018, and July 10, 2020.

      Reply

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