Multistate marijuana operator iAnthus, partially blaming the coronavirus, said it is unable to meet interest obligations totaling $4.4 million on $157.5 million in debt.
The New York-based company also delayed announcing its quarterly earnings results.
“The decline in the overall public equity cannabis markets, coupled with the extraordinary market conditions that began in Q1 2020 due to the novel coronavirus … have negatively impacted the financing markets and have caused liquidity constraints for the company,” iAnthus said in a news release.
The company, which operates 31 dispensaries in 11 states, also said it is hiring Canaccord Genuity as its strategic adviser as it battles to raise much-needed cash.
In addition, iAnthus has formed a special committee to oversee strategic alternatives for the company and to investigate possible conflicts of interest regarding the company’s CEO, Hadley Ford.
The potential conflicts of interest involving Ford were not detailed.
The company, which trades on the Canadian Securities Exchange as IAN, is still in a strong position, Ford said.
“Our business has never been stronger, and iAnthus is on track to achieve positive-adjusted EBITDA and operational cash flow in 2020 as previously planned,” he said in a release.
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