A British Columbia court has approved a revised restructuring plan for iAnthus Capital Holdings, a week after declining to sign off on a previous plan.
In reasons for judgment issued Monday, Supreme Court of British Columbia Justice Geoffrey Gomery said iAnthus had narrowed the scope of a release of claims and eliminated a permanent injunction that had previously been a concern.
After considering the arguments of lawyers representing investors still opposed to the revision, Gomery concluded that the benefits of the revised plan for shareholders “justify the burdens imposed on existing shareholders by the release (of claims).”
“The persons who are most likely to suffer adverse effects from the release also receive benefits under the revised plan, or the benefit of the release, or both,” he wrote.
New York-based multistate cannabis operator iAnthus, which maintains offices in Toronto, undertook the restructuring and recapitalization deal this summer after defaulting on interest payments.