iAnthus reports revenue growth, wider losses as cannabis operations expand

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Multistate marijuana company iAnthus Capital reported revenue of $2.2 million for the fourth quarter ended Dec. 31, 2018, up 165% from the same period a year ago.

For the full year, iAnthus posted revenue of $4.5 million, up 88% compared with its 2017 fiscal year.

The New York firm reported pro forma revenue for the quarter – which includes the financials of recently acquired MPX Bioceutical Corp. – of $14.8 million and $49.3 million for the year.

Net loss for the quarter was $15.9 million and $62 million for the full year, driven respectively by numerous noncash charges.

The company has a cash balance of $45 million, but iAnthus executives told analysts Tuesday it could receive more than $125 million from warrants already issued that may be exercised.

“The quarterly results, while surely uninspiring, are not the real story here,” Paul Penney, an analyst with Northland Capital Markets, told Marijuana Business Daily.

“With a solid balance sheet and a highly capable management team, we fully expect (iAnthus) to successfully execute and open stores efficiently.

“This transformation will take the better part of this year and next, but at stabilization, we believe (iAnthus) has a strong shot at being one of the most respected national cannabis companies.”

With its acquisition of MPX, iAnthus boasts a multistate footprint that includes operations and licenses in 11 states. Of its 63 available dispensary licenses, 21 locations are operating.

The company trades on the Canadian Securities Exchange as IAN and on the over-the-counter exchanges as ITHUF.

Shares of iAnthus stock opened at $7.15 on Tuesday, down from $7.48 a share at close Monday.

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