Cannabis multistate operator iAnthus said it has closed on $11 million of financing to complete a build-out and improvements of a cultivation and processing facility in New Jersey.
The facility is the subject of litigation between MPX New Jersey and iAnthus, which said in a statement it received permission from a New Jersey court on Wednesday to proceed with the construction.
“The court recognized iAnthus’ substantial interest in completing the construction of the cultivation facility, especially given the company’s contractual rights to acquire full ownership of MPX NJ, subject to regulatory approval,” iAnthus said in the statement.
The Monmouth County Superior Court’s written order was brief, denying MPX’s request for an injunction to stop construction.
But the order also stipulated that an area of the facility where cannabis is growing will remain under MPX control and be accessed by iAnthus only under MPX supervision.
New York-based iAnthus is trying to position itself in New Jersey for both an expanding medical cannabis market in New Jersey and a recreational marijuana market, the latter of which was approved by voters in November.
The $11 million loan, according to an iAnthus news release, is at an interest rate of 14% annually, and the notes are due in February 2023.
The loan is secured by all of the company’s New Jersey marijuana assets, which also include a medical cannabis dispensary in Atlantic City.
The interest rate would decrease to 8% annually upon completion of iAnthus’ financial restructuring plan, which was approved in a Canadian court late last year.
The company, which trades on the Canadian Securities Exchange as IAN, said it expects the expanded New Jersey cultivation and processing facility to be subleased to MPX New Jersey once completed.
It also said it has applied with state regulators to open two satellite medical marijuana dispensaries.
– Jeff Smith