[PRESS RELEASE] – NEW YORK and TORONTO, Feb. 7, 2025 – iAnthus Capital Holdings Inc., which owns, operates and companions with regulated hashish operations around the United States, introduced that positive iAnthus subsidiaries entered into definitive agreements (the “acquire agreements”) with a number one Arizona hashish operator, Pitchfork Enterprises LLC, d/b/a Sonoran Roots, and its associates to promote 3 dispensaries and two processing/cultivation amenities in Arizona for mixture attention of roughly $36.5 million (the “transaction”).
This strategic transaction is a part of the corporate’s ongoing efforts to optimize its portfolio, reinforce its stability sheet, and focal point on key markets with the best expansion attainable.
The transaction comprises two dispensaries, a processing facility and a cultivation/processing facility situated in Mesa, Arizona, in addition to one dispensary situated in Phoenix, Arizona (jointly, the “amenities”). Those amenities have constantly delivered high quality hashish merchandise and reports to their surrounding communities.
The transaction will permit iAnthus to redirect sources to its expansion projects in Florida, Maryland, New Jersey, Massachusetts and New York whilst nonetheless keeping up a retail presence in Arizona with one dispensary in Mesa.
“This transaction aligns with our ‘sensible expansion, robust margins’ technique through enabling us to double down on markets the place we will ship probably the most price to our consumers and long-term trade pursuits,” iAnthus CEO Richard Proud stated. “Via streamlining our Arizona operations, we’re laying the root for a long run outlined through operational excellence, unequalled buyer loyalty and enhanced profitability. Our persisted presence in Arizona via our Well being for Existence dispensary [on Crismon Road], and our relied on MPX logo underscores our dedication to turning in remarkable merchandise and reports in each and every marketplace we serve.”
The transaction represents a strategic milestone for iAnthus, permitting it to align sources with its long-term targets. For iAnthus, the transaction now not most effective reinforces its dedication to sensible expansion through simplifying the corporate’s operations but in addition supplies important capital to spend money on its core markets and decreases the corporate’s debt.
“We’re delighted to announce the purchase of choose iAnthus Arizona belongings, a transformational step for us in Arizona,” Sonoran Roots CEO Michael O’Brien stated. “This transaction is very accretive and strategically complements our marketplace place, expanding our Ponderosa Dispensary footprint to seven retail places with vast geographical protection. We’re excited to proceed offering remarkable hashish merchandise and reports to consumers in those places.”
Transaction Main points
Pursuant to the acquisition agreements, iAnthus will promote and Sonoran Roots will gain, considerably the entire belongings associated with or utilized in reference to the amenities, together with however now not restricted to all hashish licenses related to such companies and comparable actual belongings (jointly, the “belongings”), along with positive assumed liabilities comparable to the belongings.
The acquisition value for the belongings is roughly $36.5 million and can consist of roughly $20 million of money payable at final, matter to positive changes, and a secured promissory observe to be issued through Sonoran Roots within the predominant quantity of $16.5 million. The observe will undergo passion at a price of 6% in keeping with annum compounded once a year, with a time period of 66 months. The proceeds of the transaction, internet of comparable charges, prices and bills, are anticipated for use for running capital and basic company functions, along with the compensation of a portion of the corporate’s more than a few secured debt tasks.
The transaction is anticipated to near in 1Q 2025, matter to standard prerequisites precedent together with the receipt of appropriate is of the same opinion and regulatory approvals.
Ducera Securities LLC served because the monetary adviser to the corporate in reference to the transaction. The Hawkeye Capital Markets staff of Beech Hill Securities Inc. acted because the monetary adviser to Sonoran Roots in reference to the transaction.
All references to foreign money on this information liberate are in U.S. bucks.
