IAnthus: Patiently Waiting For MPX; Best-In-Class Disclosure
iAnthus reported Q3 revenue of $1.1 million which increased from Q2 revenue of $533k and 2017 Q3 revenue of 688k.
iAnthus has performed better than most cannabis stocks and management demonstrated prudent approach to expansion and financing.
The combined entity (+MPX) is more diversified and well-positioned to become a consolidator in the highly fragmented U.S. cannabis industry.
Welcome to our Cannabis Earnings series where we break down the latest earnings to help you focus on the most important topics.
Introduction
We first covered iAnthus Capital (otcqx:ITHUF) in our article "iAnthus: Another Early-Stage U.S. Cannabis Play" in which we introduced the company to readers and highlighted that the company was still in its early days of building out a multi-state business model in the U.S. cannabis market.
The story changed when iAnthus announced its acquisition of MPX Bioceutical (OTCQX:MPXEF) in October. We analyzed the transaction in details "iAnthus Became A Top U.S. Cannabis Play After MPX Deal" and concluded that the deal represents a transformative acquisition by iAnthus and would result in a combined entity that rivals any of the top plays in the U.S. market both in terms of revenue and scale and reach. As both iAnthus and MPX reported their 2018 Q3 results, we continue to believe that the combined entity is well-positioned in the U.S. cannabis market with a combined $1.4 billion market capitalization.
