iAnthus Archives - Green Market Report

StaffStaffSeptember 30, 2019
daily_hit004-1280x533.png

4min2270

It’s time for your Daily Hit of cannabis financial news for September 30, 2019.

On The Site

iAnthus

Gotham Green Partners has invested an additional $20 million in iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) through the purchase of senior secured convertible notes. Green Gotham said it was part of a broader $100 million financing plan to support the buildout of all existing markets in which iAnthus currently operates.

iAnthus has been building its market share at a rapid pace. Over the past 16 months, Chief Operating Officer Pat Tiernan said in a statement that the company currently has 27 open dispensaries, 11 of which have opened in the last ten months and the company is aggressively working to open another 12 in the next six months. Tiernan added, “We are growing in each of our markets and are one of the only MSOs that has meaningful revenue in multiple states, including Arizona, Colorado, Florida, Maryland, Massa

PathogenDX

Arizona-based DNA testing technology company PathogenDx, Inc. announced $7.5 million in Series B funding. This latest investment round was led by Cresco Capital Partners with participation from Altitude Investment Management, Arcadian Investment Partners, Panther Opportunity Fund LLC, Salveo Capital, Flatiron Venture Partners, and other investors. PathogenDx was able to close this round of funding in just under three months.

PathogenDx wants to become the new standard in DNA-based testing through widespread adoption of its advanced microarray testing platform for the cannabis, hemp, agriculture, food, and beverage industries. PathogenDx’s technology can rapidly identify and detect up to 50 pathogens all in a single test, in 6 hours providing triplicate data per analyte for certainty in results with a simple and easy process. This additional capital raise will allow PathogenDx to continue expanding its breakthrough technology into food and agriculture testing while continuing to build on its leadership position with a current portfolio of domestic and international clients in the cannabis industry.

In Other News

High Tide

High Tide Inc. (CSE:HITI) (OTCQB:HITIF) an Alberta-based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, has filed its financial results for the third fiscal quarter of 2019 ending July 31.

Revenue in the third quarter increased by 281%, to C$8 million from C$2 million for the same period in the previous year. Gross margin increased by 160%, to $3 million from $1 million in the same period in 2018, primarily due to an increase in sales volume.

48North

48North Cannabis Corp. (TSXV: NRTH) released its financial and operating results for the fiscal year ended June 30, 2019. The company delivered net revenue of $4,820,000, marking 48North’s first full year of revenue, but a net loss of $8.1 million. In fiscal 2019, the company raised over $48 million and at the end of the year had $52.7 million in cash and cash equivalents on hand. As a result, 48North believes it is well capitalized to execute on its business plan.


Debra BorchardtDebra BorchardtSeptember 30, 2019
shutterstock_256424509-1280x853.jpg

5min2250

Gotham Green Partners has invested an additional $20 million in iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) through the purchase of senior secured convertible notes. Green Gotham said it was part of a broader $100 million financing plan to support the buildout of all existing markets in which iAnthus currently operates.

iAnthus has been building its market share at a rapid pace. Over the past 16 months, Chief Operating Officer Pat Tiernan said in a statement that the company currently has 27 open dispensaries, 11 of which have opened in the last ten months and the company is aggressively working to open another 12 in the next six months. Tiernan added, “We are growing in each of our markets and are one of the only MSOs that has meaningful revenue in multiple states, including ArizonaColoradoFloridaMarylandMassachusetts and Nevada, with strong same-store sales growth across our footprint.”

“We are pleased to be working with a leading financial investor in the U.S. cannabis sector. The new notes will allow us to build out operations in our key markets and continue to develop our retail and product brands,” said Hadley Ford, CEO of iAnthus.   “We believe this level of support from GGP will fully fund the development of our existing assets and provide the necessary capital for iAnthus to achieve positive and sustainable EBITDA and operational free cash flow in 2020.”

Terms

The notes have an annual coupon of 13%, payable quarterly, which will mature on May 14, 2021, subject to the iAnthus’ right to extend the maturity date by twelve months, and are exchangeable into common shares of the company at a conversion price of $1.89, which represents a 25% premium to the closing price of the common shares on Friday, September 27, 2019. The notes are being issued with $10 million of attached three-year warrants with an exercise price of $1.97.  Any additional notes will have substantially the same terms, including conversion price and warrant coverage, subject to compliance with the policies of the CSE. The note purchase agreement provides GGP the right to purchase additional notes of up to $66.5 million for a total of $86.5 million. The company may obtain an additional $13.5 million from potential financing sources, including GGP or others, to fulfill its $100.0 million plan, with any such additional financing subject to the negotiation of pricing, terms, and conditions in the context of the market.

“We have viewed iAnthus as a key partner since our initial investment in May 2018 and have closely watched the Company’s evolution as it has continued to execute on its operational strategy across multiple markets. The Company has made significant strides in broadening and operationalizing its footprint, which we do not believe is reflected in the Company’s current trading price,” said Jason Adler, Managing Member of Gotham Green Partners. “We look forward to working alongside iAnthus and continuing to support the growth of the Company.”

 


William SumnerWilliam SumnerSeptember 19, 2019
daily_hit004-1280x533.png

4min2830

It’s time for your Daily Hit of cannabis financial news for September 19, 2019.

On the Site

Eaze

California delivery software company Eaze has finally gotten fed up with DionyMed’s (CSE: DYME) (OTC:DYMEF) accusations and filed a countersuit on Tuesday against the company. For DionyMed, it comes at a pretty bad time. The company just accepted the resignation of its COO Pete Hilliard and is restructuring its debt. Plus, the stock was halted in trading. So, where to begin? Let’s start with the Eaze lawsuit.

iAnthus

iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF) has entered an agreement to acquire WSCC, Inc., better known as Sierra Well, for $27.6 million. iAnthus will pay for the acquisition price with $5.1 million in cash and $22.5 million in company shares, priced at the 10-day volume-weighted average price prior to closing of the transaction. Sierra Well is a Nevada-based, vertically integrated cannabis company with two retail dispensary locations and two cultivation/production facilities in Reno and Carson City totaling a combined 20,000 square feet

In Other News

Future State Brands

The cannabis brand holding company, Future State Brands, announced its launch today with more than $25 million in funding. The company is led by PRØHBTD CEO and Founder Drake Sutton-Shearer; and its portfolio includes a hemp cosmetics line, a music-inspired cannabis brand called Heavy Grass, and a line of infused products.  “I’m excited to move into this next phase of our journey with a crystal clear vision of our desired future state. Although brands is the vehicle to get us there, it cannot be achieved without an incredible team, accessible capital and most of all, an understanding of the customer we are building for,” said Sutton-Shearer.

Vireo Health

Vireo Health International, Inc. (CNSX: VREO) (OTCQX: VREOF) announced today that its shares have received Depository Trust Company (DTC) full-service eligibility in the United States. DTC is a subsidiary of the Depository Trust & Clearing Corp., which manages the electronic clearing and settlement of publicly traded companies. DTC Eligibility will allow the company’s shares to be distributed, settled and serviced through DTC’s automated processes.


William SumnerWilliam SumnerAugust 27, 2019
daily_hit004-1280x533.png

6min4000

It’s time for your Daily Hit of cannabis financial news for August 27, 2019.

On the Site

iAnthus

iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) delivered solid financial results for the fiscal second-quarter ending June 30, 2019 with revenues increasing 100% sequentially to $19.2 million from $9.6 million in the first quarter and easily whipping last year’s $256,000 for the same time period. The  company’s second-quarter net loss of $9.3 million was a considerable improvement over the adjusted net loss of $16.5 million in the first quarter and much better than last year’s net loss of $35.4 million for the same time period.

Canopy Rivers

Cannabis investing company Canopy Rivers Inc.  (TSXV: RIV), (OTC: CNPOF) reported its unaudited financial results for the first quarter ending June 30, 2019, with an operating income of $2.7 million. However, expenses in the quarter totaled $5.8 million leading to a net loss of $2.9 million. The company also said it expects to recognize its share of net losses during the remainder of the fiscal year.

More Consumers are Drinking their Cannabis and Big Brands are Getting in On It

Both the cannabis and beverage industries saw dollar signs when Constellation Brands added a $4 billion investment to its already ample investment into Canopy Growth… Headset recently came out with an extensive report examining the rapidly developing cannabis-infused beverages industry, stating that although beverages don’t make up the majority of cannabis product sales, they are “a category within cannabis that’s worth watching.”

In Other News

TerrAscend

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) announced the early exercise of purchase warrants to acquire proportionate voting shares representing 28,636,361 common shares, for gross proceeds of approximately C$31.5 million. The outstanding warrants were held by funds advised by JW Asset Management, LLC which are affiliates of TerrAscend Chairman, Jason Wild.  “The early exercise provides TerrAscend with capital in a timely and efficient manner”, said TerrAscend CEO, Michael Nashat. “We value our relationship with JW Asset Management, LLC and appreciate their continued support of our strategy to develop and acquire premium brands, while continuing to build a global footprint.”

Hounds Labs

Hound Labs Inc., a technology company that has developed a dual-purpose breathalyzer for cannabis and alcohol, announced that it had raised $30 million in Series D financing. The funds will go towards accelerating the manufacturing of the company’s cannabis/alcohol breathalyzer for commercial use. Leading the round was Intrinsic Capital Partners. “With the publication of clinical study results validating breath as the new frontier for testing recent use of THC, investors can see the tremendous value that Hound Labs will bring to the market with its first-of-its-kind technology,” said Dr. Mike Lynn, CEO and co-founder of Hound Labs. “We are excited to usher in a new era of more meaningful and fair drug testing now that marijuana is both medically and recreationally available to so many people.”

MedPharm Research

MedPharm Research announced that it had received a notification from the DEA that is had been chosen to move forward as one of the first applicants to be granted a license to grow federally legal cannabis under the terms of a new policy statement issued in the Federal Register. This is something we have been waiting for since we first sent in our application in September, 2016, as one of the first medical grow facilities to apply for a license,” Albert Gutierrez, CEO of MedPharm. “It is a real game-changer for the whole medical cannabis industry.”


Debra BorchardtDebra BorchardtAugust 27, 2019
ianthus3.jpg

5min5732

iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) delivered solid financial results for the fiscal second-quarter ending June 30, 2019 with revenues increasing 100% sequentially to $19.2 million from $9.6 million in the first quarter and easily whipping last year’s $256,000 for the same time period.

The company’s second-quarter net loss of $9.3 million was a considerable improvement over the adjusted net loss of $16.5 million in the first quarter and much better than last year’s net loss of $35.4 million for the same time period.

The first half of 2019 has been an exciting time for team iAnthus, and I want to thank all of our employees, nearly 700 strong, for all of their hard work.  We have integrated the MPX and iAnthus businesses, and the team effort is beginning to show in our results. MPX products are now carried in three states in over 110 stores and we’ll be adding CaliforniaMassachusetts, and Florida later this year,” said Hadley Ford, CEO of iAnthus. “We continue to generate operational efficiencies without limiting growth.  This is evidenced by our 35% sequential revenue growth, expanding gross margins and limited incremental G&A expenses.”

Expenses Under Control

While other cannabis companies seem to spend with abandon, iAnthus expense kept a sharp eye on its general and administrative expenses which only increased to $5.7 million in the second quarter from $4.1 million in the prior quarter. With 700 employees now, the salaries and benefits expenses increased to $8.1 million in the second quarter from $6.1 million in the first quarter. The adjusted gross margin for the quarter was 52.4%, up from 23.4% in the first quarter and the adjusted gross profit of $10.1 million, up 347% from $2.2 million in the prior quarter.

iAnthus noted that its eastern region revenue increased to $10.2 million, up 143% from the prior quarter and the western region revenue increased to $9.0 million, up 67% from the prior quarter. The company now has eight dispensaries in Florida. It is a wholesaler to 21 dispensaries in Massachusetts and expects to open a dispensary there by the end of the year. There are three dispensaries in Maryland and expansion plans for New Jersey and New York.

Ford added, “Since opening our first Florida dispensary in December 2018, we have grown our market share to 3.5% and we are the third highest in the state in terms of THC volume per store.  These results in Florida show what we can bring to other greenfield markets for iAnthus like New York and New Jersey. In Massachusetts, we have made significant progress toward opening our first adult-use store in Worcester, and this fall will mark the launch of our new Be. store brand with the opening of our Brooklyn flagship store.”

Cash On Hand

The company has cash and cash equivalents of $30.5 million, an increase of $642.6 million (or 382%) in total assets from year-end 2018.

“As always, reducing our cost of capital remains a focus.  Our recently announced commitment for up to $50 million Senior Secured financing from Torian Capital, once closed, will move us forward on that front,” said Ford.

The stock was recently trading at $2.53, down from its 52-week high of $7.27.


StaffStaffAugust 20, 2019
daily_hit004-1280x533.png

7min3480

It’s time for your Daily Hit of cannabis financial news for August 20, 2019.

On The Site

iAnthus

Multi-state operator iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) said that it has entered into a senior secured term loan of up to $50 million from one or more investment funds managed by Torian Capital Partners. The loan will be doled out in two tranches of $25 million each with similar terms.

iAnthus said it will use the money for its expansion efforts in Florida and the company’s new Be. retail locations in Nevada, New Jersey and New York. The company is expected to report its second-quarter earnings on August 27.  Last month the company noted that its CBD For Life products will be sold in Dillards Department Stores.

BDS Analytics

Cannabis data company BDS Analytics announced that it closed on $7 million in new financing, led by KEY Investment PartnersAltitude Investment Management, and 7thirty, with participation from other investors. A part of the financing deal, Pete Karabas of KEY Investment Partners will be joining the board of directors. BDS said it will use the money to expand coverage of emerging cannabis markets and strengthen its operating infrastructure with investments in machine learning, marketing and sales, and strategic partnerships.

“As the global cannabis economy continues to expand, it is imperative that we’re able to scale alongside it to remain an indispensable asset for key decision-makers in the industry,” said Roy Bingham, CEO, and Founder of BDS Analytics. “We’re excited about this new round of funding, which will allow us to further enhance our GreenEdge platform and expand our capabilities to the entire addressable cannabinoid market.”

In Other News

Organigram

Organigram Holdings Inc. (NASDAQ: OGI) (TSX VENTURE: OGI) received final approval for the listing of its common shares on the Toronto Stock Exchange (“TSX”). Organigram’s common shares will commence trading on the TSX at the opening on Thursday, August 22, 2019, continuing to trade under the symbol OGI. To ensure continued and seamless trading for the Company’s shareholders and as a result of the graduation, there will be no further trading on the TSX Venture Exchange after Wednesday, August 21, 2019. Organigram’s common shares will be delisted from the TSX Venture Exchange at the commencement of trading on the TSX.

Empower Clinics

Empower Clinics  (CSE: CBDT) (OTC: EPWCF) a vertically integrated and growth-oriented CBD life sciences company, and a multi-state operator of medical health & wellness clinics in the U.S., announced that its common shares will begin trading on the OTCQB Venture Market at the opening of the market on August 20th, 2019 under the stock symbol (OTC: EPWCF). “Our listing on the OTCQB Venture Market in the United States complements Empower’s listings on the Canadian and Frankfurt Stock Exchanges, respectively, broadening our investment base as we accelerate our growth strategy in the global medical cannabis and wellness sectors,” said Steven McAuley, Empower CEO.  “This is a timely milestone, as we have a robust pipeline of activity tied to product development, business development, M&A and, overall company expansion.”

Acquired Sales Corp.

Acquired Sales Corp. (OTC Pink: AQSP) announced that it has signed a definitive merger agreement to acquire 100% of CBD LION LLC (www.CBDLION.com), Mundelein, Illinois, for consideration of $2 million in cash, plus 5 million shares of Acquired Sales Corp.’s common stock. Acquired Sales Corp. also announced that it has loaned $300,000 to CBD LION LLC that will be used as growth capital.


Debra BorchardtDebra BorchardtAugust 20, 2019
ianthus3.jpg

4min3970

Multi-state operator iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) said that it has entered into a senior secured term loan of up to $50 million from one or more investment funds managed by Torian Capital Partners. The loan will be doled out in two tranches of $25 million each with similar terms.

iAnthus said it will use the money for its expansion efforts in Florida and the company’s new Be. retail locations in NevadaNew Jersey and New York. The company is expected to report its second-quarter earnings on August 27.  Last month the company noted that its CBD For Life products will be sold in Dillards Department Stores.

“Reducing our cost of capital has been one of our key goals for 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,” said Hadley Ford, CEO of iAnthus. “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.”

Terms

iAnthus said that the loan will be secured by a first-priority lien on all current and future assets of the company and its affiliates, subject to certain exceptions, including applicable cannabis regulations, and will be guaranteed by all current and future affiliates of the Company.  Each tranche of the Term Loan will bear interest at a rate of 9.0% per annum, payable quarterly in arrears during their respective terms and each tranche will mature 36 months from the date of its advance. Following the 12-month anniversary from the date of advance of each tranche, iAnthus may prepay the outstanding principal amount of the such tranche: (i) in year two, upon payment of 109% of the principal amount outstanding and (ii) in year three, upon payment of 104.5% of the principal amount outstanding.

Further, upon completion of each tranche, Torian Capital will be issued share purchase warrants (“Warrants”) from iAnthus in an amount equal to 20% coverage of each tranche. Each Warrant will entitle Torian Capital to purchase one common share for a period of 36 months from the date of issue. The Warrants issued will, subject to the policies of the Canadian Securities Exchange (“CSE”), 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. The Warrants may be called by iAnthus if the volume-weighted average price of iAnthus’ common shares on the CSE exceeds 2.0x the exercise price for 20 days within any 30-day period, and the daily average trading volume of iAnthus’ common shares on the CSE equals or exceeds 25% of the Warrants then outstanding.


StaffStaffJuly 3, 2019
Elizabeth-Stavola-Chief-Strategy-Officer-and-Director-iAnthus-.jpg

5min8650

Beth Stavola is a leading cannabis entrepreneur. She was formerly the Chief Operating Officer, President of US Operations, and Board Member of MPX Bioceutical Corporation, and is now the Chief Strategy Officer and Director for iAnthus. Beth is also the founder of the top CBD beauty and wellness brand, CBD For Life, a privately-held company that provides customers with the benefits of cannabinoids while avoiding unwanted psychoactive effects. Previously, Beth worked on Wall Street with Jefferies and Company, rising to the position of Senior Vice President. She is actively involved in organizations that promote women in the cannabis industry and in 2014 was named as one of the leading medical cannabis entrepreneurs by Congresswoman Dina Titus, on the floor of the House of Representatives.  In 2017, Cannabis Business Executive named Beth #3 on the “CBE 75 Most Important Women In Cannabis” list.

GMR Executive Spotlight Q&A –

Full birth name: Beth Stavola  

Title: Chief Strategy Officer and Director

Company: iAnthus Capital Holdings

Years at current company: <1 

Education profile:  Beth Stavola holds the esteemed honor of being named as one of the leading medical cannabis expert entrepreneurs on the floor of the House of Representatives in 2014 by Congresswoman Dina Titus. She holds a BS in Finance and Economics from Monmouth University and spent most of her Wall Street career at Jefferies and Company.  

Most successful professional accomplishment before cannabis:   While I structured and closed many deals during my time in finance, being the #1 producer in my department the most times during a ten-year career at Jefferies is the highlight. I think it shows my determination to succeed professionally no matter the industry. A personal investment in medical cannabis lead me on this incredible journey where I am able to combine my passion and experience to help people. Sometimes opportunities happen where you least expect them and working with people who have different perspectives can open your mind to new ways of thinking and growing your business.

Company Mission: In the high growth environment of the U.S cannabis market, an experienced team, access to capital and an ability to grow through acquisition are the three key drivers of a company’s success. iAnthus was founded by entrepreneurs who bring together market leading experience in operations, capital markets and M&A.

Combining these skills, we are building a cannabis company that will seize the opportunities this emerging industry offers.

Company’s most successful achievement:  The transformational Deal with MPX which closed in February 2019 was the first public-to-public U.S. cannabis transaction with an HSR filing to be approved by the Department of Justice. The combined company now has operations in 11 states. 

Has the company raised any capital (yes or no): if so, how much?  

We have raised 360mm CAD to date.

Any plans on raising capital in the future? I’m unable to comment on future plans.

Most important company 5-year goal:  Our biggest goal is to expand our brands into new and diverse markets as they open up in the U.S. and abroad. This will ensure that our customers receive the highest quality products in a timely, efficient and reliable way, as our brands become recognized nationally and internationally under the iAnthus umbrella.

 


William SumnerWilliam SumnerMay 3, 2019
daily_hit004-1280x533.png

5min4560

It’s time for your Daily Hit of cannabis financial news for May 3, 2019.

On The Site

Indose

Indose, a groundbreaking precise dosage vaporizer that measures and displays exact dosage in real-time, down to the milligram, for a customized and controlled cannabis experience, announced today that it has closed a $3.5 million Series A round led by Casa Verde Capital.

Millennials Are Beginning Cannabis Careers Through Summer Internships

An increasing number of North American cannabis companies are reaching out to college students, offering summer internships as an opportunity to get their foot in the door in the growing industry. Students now are being given opportunities that students only 5 years ago could have only dreamed of!

Green Market Report’s Marijuana Money May 3, 2019

Green Market Report just learned that one of the sponsors at next week’s Green Market Summit is going to be announcing a new product at the conference. This is going to be huge news. We still have some room left, but there is a limited about of seats. Get your tickets before it’s too late.

In Other News

TerrAscend

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) has announced that its manufacturing facility in Mississauga, Ontario, Canada has been issued a Good Manufacturing Practice certificate in according with European Union (EU) laws; which will allow the company to export medical cannabis to the EU. The company also announced that it has entered into a comprehensive sales and distribution agreement with the German pharmaceutical wholesaler, iuvo Therapeutics GmbH. “Just five months ago, TerrAscend became the first North American Operator (NAO), with scale operations in both Canada and the US. Upon commencement of shipments this quarter, through our partner iuvo in Germany, TerrAscend will be the first and only global cannabis operator with sales in the three largest markets in the world,” said Dr. Michael Nashat, CEO of TerrAscend.

iAnthus

iAnthus Capital Holdings Inc. (CSE: IAN) (OTCQX: ITHUF) announced that it has completed a private placement offering of an incremental $25 million of unsecured convertible notes and corresponding warrants, as an add-on to a previously announced private placement of $35 million. The notes will mature on March 15, 2023 and will carry an annual interest of 8%.

Fire & Flower

Fire & Flower Holdings Corp. (TSXV: FAF) announced that it has entered into a definitive agreement to acquire four licensed cannabis dispensaries from Prairie Sky Cannabis Inc. for $13 million, half of which will be paid in cash and the other half in common shares of the company. The dispensaries, which are under the brand name Jimmy’s Cannabis Shop, are located in the Saskatchewan communities of Battleford, Estevan, Martensville, and Moosomin. “The acquisition of four additional retail cannabis stores in the province of Saskatchewan is the first in Fire & Flower’s aggressive acquisition strategy for 2019,” said Fire & Flower CEO Trevor Fencott. “In conjunction with our Open Fields wholesale distribution platform in the province, it cements our leadership position in this strategic market.”


Debra BorchardtDebra BorchardtApril 2, 2019
ianthus3.jpg

4min8030

iAnthus Capital Holdings, Inc. (CSE: IAN, OTCQX: ITHUF) reported its fiscal fourth quarter and full year unaudited results for 2018, however, the company did not release any financial statement to accompany the press release.

Fourth Quarter

The company delivered fourth-quarter revenue of $2.2 million (an increase of 165% over the same time period for 2017), pro forma revenue* for the fourth quarter was $14.8 million and the adjusted EBITDA loss for the fourth quarter was $6.0 million. The fourth quarter net loss was approximately $15.9 million, which includes $9.9 million of non-cash charges used to derive adjusted EBITDA primarily due to accretion expense, fair market value adjustments, depreciation, and share-based compensation.

Full Year

iAnthus reported full-year fiscal 2018 revenue and other income of $4.5 million (an increase of 88% over 2017) and a pro forma revenue* of $49.3 million for the full year fiscal 2018. The full year fiscal 2018 net loss of approximately $62.0 million included $44.1 million of non-cash charges used to derive adjusted EBITDA primarily due to accretion expense, fair market value adjustments, depreciation, and share-based compensation. Adjusted EBITDA loss was $17.9 million for the full year fiscal 2018.

Pro forma revenue (which includes acquired MPX entities and managed revenue for Colorado and New Mexico operations*) for the fourth quarter was $14.8 million and $49.3 million for the full year fiscal 2018.

Management Comments

“We made significant investments in expanding our footprint and scaling our operations while maintaining a prudent balance sheet in the process.  We opened eight dispensaries in the past seven months, including flagship stores in West Palm Beach, FL, and Brooklyn, NY, and plan to nearly double the pace of openings throughout the remainder of 2019.,” said CEO Hadley Ford. “We are now revenue generating in nine of eleven states and ramping quickly. Managing growth is challenging, particularly in an emerging industry.  Fortunately, we have also built an impressive operating team that combines cannabis expertise with crucial professional skillsets from outside the industry.”

Looking Ahead

iAnthus announced last week that its U.S. subsidiary has entered into a letter of intent to acquire CBD For Life, a top-ranked, national CBD brand in the U.S. This transaction is expected to close in the second quarter of 2019. CBD for Life products are currently distributed in over 750 retail outlets and channels across the U.S. The Company will continue to sell products through its own licensed facilities, as well as actively target other dispensaries within the market.

The company said it expects that sales will launch in California in the next 60 days, which will be the 10th state for revenue generation.

iAnthus also said it believes that the Massachusetts market will be one of the highest growth markets within the US, and it is iAnthus’ full intention to become a significant wholesaler within the state.



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 3 hours

Charlotte’s Web Lowers Guidance As Expenses Skyrocket

@GreenMarketRpt – 8 hours

$CWEB $CEBHF ⁦@charlottesweb⁩ Lowers Guidance As Expenses Skyrocket #cbd…

Back to Top

You have Successfully Subscribed!