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iAnthus strikes deal with big player in Colorodo legalised cannabis market

Tuesday, February 7, 2017 7:49
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(Before It's News)

Finance house iAnthus Capital Holdings Inc (CNSX:IAN) has hooked up with The Green Solution (TGS), a big player in the US legalised cannabis industry.

iAnthus, which finances licensed cannabis cultivators, has entered into a strategic partnership with TGS, which operates 12 retail stores as well as integrated cultivation and processing facilities in the state of Colorado.

iAnthus will provide a US$7.5mln loan facility to TGS. The facility will run for one year and carry an interest rate of 14% during the first four months, escalating to 23% thereafter.

The loan facility includes personal guaranties from the owners of TGS’s parent company.

For its part, TGS will provide iAnthus with operational expertise and advice on the finance house’s investments in Massachusetts, Vermont, New Mexico and Colorado.

TGS has also committed to introduce iAnthus to franchisee operators in states across the USA, potentially creating a pipeline of financing opportunities for iAnthus, including equity partnership arrangements with TGS’s franchisee operators.

“iAnthus has established itself as a source of capital for licensed cannabis cultivators, processors and dispensaries throughout the United States, and the decision to develop a strategic relationship with iAnthus was a simple one,” said TGS’s co-chief executive officer (CEO), Kyle Speidell.

“This credit facility will allow us to add multiple licenses and stores for the Colorado market in 2017,” he added.

“We look forward to the start of this strategic relationship with iAnthus, as it helps us with our future growth plans in Colorado, and provides an opportunity to catalyze and accelerate our continued expansion across the United States,” Speidell maintained.

Hadley Ford, CEO of iAnthus, described TGS as one of the leading cannabis operators in the world.

“Our mission is to provide strategic capital and capital markets expertise to licensed US cannabis operators, such as TGS and TGS National Franchise’s franchisees. It’s an added benefit that TGS will provide iAnthus with advice and expertise to help us optimize our existing investments in Colorado and across the US,” Ford said.

Julius Kalcevich, chief financial officer of iAnthus, said: “TGS’s operational advice and involvement with iAnthus in our four current investments will leverage the years of experience that TGS has acquired in becoming one of the largest operators in the US and is expected to translate into meaningful benefits for iAnthus’s current investments, including operational efficiencies and product formulation.”

Story by ProactiveInvestors



Source: http://www.proactiveinvestors.com/companies/news/172796/ianthus-strikes-deal-with-big-player-in-colorodo-legalised-cannabis-market-172796.html

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