Multistate marijuana operator iAnthus said it expects to default on interest payments due June 30 and likely will delay its quarterly earnings past an extended June 15 deadline – a move that could result in a stock trading suspension.
The New York-based company, which has partly blamed the coronavirus crisis on filing delays, also said in a news release that, although its previously announced strategic review is ongoing, the firm can’t assure that any alternatives pursued will provide value to stockholders.
Here’s more from iAnthus’ update:
- As of June 11, debt totaled $159.1 million, including $97.5 million of 13.0% senior secured convertible debentures, $60 million of 8.0% unsecured convertible debentures and $1.6 million of other debt obligations.
- The company previously announced that it did not make $4.4 million in interest payments due March 31 and said it doesn’t expect to be in a position to make interest payments due June 30.
- Although it is “working diligently” to make its required filings “as soon as feasible,” iAnthus said a cease-trading order could go into effect until it makes those quarterly financial filings.
The MSO also has faced executive turmoil in the past few months.
In late April, Hadley Ford resigned as CEO after a company investigation found he failed to disclose two loans totaling $160,000.
The company trades on the Canadian Securities Exchange as IAN.