US (NJ): Grower closes $11M financing to build-out NJ facilities

iAnthus has closed an $11 million bridge financing.

"The proceeds of the Financing, net of fees, costs and expenses related to the Financing, will be used primarily for the construction and improvements of certain New Jersey facilities leased and/or owned by iAnthus NJ," iAnthus team explains. "Upon completion of construction and prior to commencement of operations, such facilities are expected to be subleased to MPX New Jersey, a medical cannabis permit holder in New Jersey with which the Company has entered into several contractual agreements as described below. These facilities include the cultivation and manufacturing facility currently under construction in Pleasantville and the current dispensary located in Atlantic City, as well as two prospective satellite dispensaries expected to be leased and/or purchased and improved by iAnthus NJ pursuant to satellite approval applications filed with the New Jersey Department of Health on December 31, 2020."

Randy Maslow, Interim Chief Executive Officer and President of the Company stated: "We are very pleased to have closed this bridge note financing. The net proceeds from the financing will be used exclusively for our operations in New Jersey for the continued construction and completion of improvements at our New Jersey cultivation, manufacturing and dispensary facilities. We expect to sublease these facilities to MPX NJ once construction is complete and the facilities are ready to commence licensed operations."

The Company's iAnthus NJ subsidiary, pursuant to a loan agreement with MPX NJ dated October 24, 2018, has the right to convert the principal balance of the loans and accrued interest thereon into a 99% equity interest in MPX NJ subject to certain regulatory approvals. In addition, pursuant to an option agreement of the same date with MPX NJ and its then current equityholders, iAnthus NJ has an option to acquire the remaining 1% of MPX NJ for nominal consideration, subject to certain conditions and approvals.