iAnthus Capital Holdings Inc. (CNSX:IAN) has closed its bought deal private placement for aggregate gross proceeds of $20mln.
The company intends to use the net proceeds from the offering to finance the credit facility with The Green Solution LLC as well as for general corporate and working capital purposes.
iAnthus delivers a comprehensive solution for financing and managing licensed cannabis cultivators, processors and dispensaries throughout the United States.
The company issued a total of $20mln of 8% unsecured convertible debentures. The debentures will be convertible at the option of the holder into common shares of the company at any time prior to the close of business on Feb. 28, 2019, at a conversion price of $3.10 per common share, subject to adjustment and acceleration in certain events.
Beginning on June 29, the company may force the conversion of all of the principal amount of the then outstanding debentures at the conversion price on 30 days of prior written notice should the daily volume-weighted average trading price of the common shares be greater than $4.50 for any 10 consecutive trading days.
The syndicate for the offering was led by Canaccord Genuity Corp. and included Beacon Securities Ltd.
“In our view, the opportunities for financing leading cannabis operators in the United States is very strong. This offering further strengthens our balance sheet to meet that demand,” said Hadley Ford, chief executive officer of iAnthus.
“As Canadian investors begin to look south of the border for growth opportunities, we believe that we are very well positioned as a well-diversified portfolio across cannabis operators, geographies, and regulated recreational and medical markets.”
Story by ProactiveInvestors