iAnthus closes cannabis recapitalization deal with $25 million more of financing

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Cannabis multistate operator iAnthus Capital Holdings closed a previously announced restructuring and recapitalization deal, then disclosed $25 million in new financing via senior secured notes.

New York- and Toronto-based iAnthus originally entered the restructuring and recapitalization deal in 2020 after defaulting on interest payments and receiving a demand for repayment on its secured debt.

Under the deal, according to a Friday news release, iAnthus issued more than 6 billion shares to holders of the company’s secured and unsecured convertible debentures.

The company said its shares might be consolidated in the future.

Some debtholders acquired $25 million of new 8% senior secured debentures, due June 2027.

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Proceeds from the notes will be used “for working capital and general corporate purposes, and for costs and expenses relating to the closing of the recapitalization transaction,” iAnthus said in the release.

Shares of iAnthus trade as IAN on the Canadian Securities Exchange.