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IANTHUS REPORTS FISCAL 2019 FINANCIAL RESULTS AND PROVIDES ADDITIONAL BUSINESS UPDATES
iAnthus Capital Holdings Inc. has released its financial results for the year ended Dec. 31, 2019. The company's financial statements for the year ended Dec. 31, 2019, and the related management's discussion and analysis can be accessed on the company's SEDAR profile and on the company's website.
Additional business updates
Mutual termination of acquisition
The company and WSCC Inc. (Sierra Well) announce the mutual termination of the merger agreement previously announced on Sept. 19, 2019. As a result of the prolonged timeline to achieve the necessary conditions to close, combined with the adverse market conditions surrounding the industry and broader economy, the company and Sierra Well agreed that it was in the best of interest of both parties to terminate the transaction. Pursuant to the terms of the agreement, no termination fee was payable by either party.
First quarter 2020 interim filings update
The company had previously announced that it had failed to file its interim financial statements for the quarter ended March 31, 2020, management's discussion and analysis related thereto, and the related certificates required by NI 52-109 prior to the filing deadline on July 14, 2020. As a result, the company continues to be subject to a cease trade order (the CTO) issued by the Ontario Securities Commission on June 22, 2020. The CTO affects trading in all securities of the company by securityholders of the company in each jurisdiction in Canada in which the company is a reporting issuer and will remain in effect until such time as the company has filed the interim filings. If the interim filings are made within 90 days of the date of the CTO, such filings would constitute the company's application to have the CTO revoked. The company expects to file the interim filings on or before the 90-day deadline.
Receipt of statement of claim
A proposed class action was issued on July 23, 2020, in the Ontario Superior Court of Justice in Toronto against iAnthus, iAnthus's former chief executive officer and iAnthus's chief financial officer by Blue Sky Realty Corp. The plaintiff seeks to certify the proposed class action on behalf of all persons, other than any executive-level employee of the company and immediate families, who acquired the company's common shares in the secondary market on or after May 30, 2019, and who held some or all of those securities until after the close of trading on April 5, 2020. Among other things, the plaintiff alleges statutory and common law misrepresentation, and seeks an unspecified amount of damages, together with interest and costs. The certification motion and leave to proceed motion for a secondary market claim under the Securities Act (Ontario) have not yet been scheduled. The company intends to vigorously defend this claim.
About iAnthus Capital Holdings Inc.
iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry. Founded by entrepreneurs with decades of experience in operations, investment banking, corporate finance, law and health care services, iAnthus provides a unique combination of capital and hands-on operating and management expertise. iAnthus currently has a presence in 11 states and operates 36 dispensaries.
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