iAnthus Capital Holdings, Inc. (CSE:IAN) (OTC:ITHUF) announced the closing of its acquisition of 100% of the equity interests of MPX New Jersey, LLC, a medical cannabis permit holder in New Jersey.
What Happened?
The company's wholly-owned subsidiary, iAnthus New Jersey, LLC pursuant to a loan agreement with MPX NJ dated October 24, 2018, exercised its right to convert the principal balance of the loans and accrued interest owed thereon into a 99% equity interest in MPX NJ, which conversion was subject to certain regulatory approvals.
In addition, pursuant to an option agreement of the same date with MPX NJ and its current equityholders, iAnthus NJ exercised its option to acquire the remaining 1% of MPX NJ for nominal consideration, again subject to certain regulatory approvals.
iAnthus NJ exercised its rights under the Loan Agreement and Option Agreement on February 3, 2021 and February 25, 2021, respectively.
On January 7, 2022, the New Jersey Cannabis Regulatory Commission approved iAnthus NJ's acquisition of 100% of the equity interests of MPX NJ pursuant to the loan agreement and option agreement and on February 1, 2022, iAnthus NJ closed the acquisition.
The Deal Details
As previously announced in the company's February 2, 2021 news release, iAnthus NJ issued $11 million aggregate principal amount of senior secured bridge notes, the net proceeds of which are being used primarily for the construction and improvements of facilities leased by iAnthus NJ.
Since that time, iAnthus NJ has continued to make significant construction progress at its cultivation and manufacturing facility in Pleasantville, New Jersey and intends to commence operations in the near term.
What’s Next?
Additionally, upon receipt of the necessary approvals from the CRC, MPX NJ expects to open its dispensary facility in Atlantic City, New Jersey in the next few months, and then two prospective satellite dispensaries in New Jersey upon approval of MPX NJ's pending satellite applications filed with the New Jersey Department of Health in December, 2020.
As disclosed in the company's news release dated December 9, 2021, regulatory approvals in Massachusetts,1 New York, Maryland and Florida2 necessary to close the Company's previously announced recapitalization transaction remain outstanding.
Photo: Courtesy of Esteban Lopez on Unsplash
