UPDATE - iAnthus Shareholder Actionhttps://www.ianthusshareholders.com/ This is not investment advise. We are not advising to sell or hold this security. What we are doing is gathering investors that want to maintain their fair share of equity. If you want to continue holding your shares and not be diluted to a pittance, please read on. Over 10% of all outstanding shares are now part of our action.
Many of us have been working on a way to fight back against GGP's defacto takeover of iAnthus. This action is primarily for existing shareholders, though there is information on the linked website for those that have sold at a loss (a class action lawsuit).
If you have questions feel free to DM me or comment below. There is also an email address found on the website which you can contact.
Some background as found on the website:
iAnthus Capital Holdings has defaulted on their debt to Gotham Green Partners (GGP).
GGP has been acting in bad faith to squeeze iAnthus into a capital crunch.
The majority of the debt was taken less than a year ago and the plan was for them to keep funding iAnthus with another large tranche.
GGP has more than 20% of ownership in the company. They are classified as a controlling person and an insider.
As of a result, they had insider information, influence, and control over the Board of Directors and Executives. They also have observer status at Board meetings.
GGP knew everything about the company operations in priority to shareholders.
They discovered that the company was running low on cash while the company was significantly improving and approaching their goals that the board promised. GGP made every indication that the final tranche was coming and supported iAnthus operating as if it would receive more funding.
In the end, GGP pulled the plug on financing and forced iAnthus into a default.
It was discovered that the company had sufficient cash to make interest payment on March 31, 2020, but GGP said that they will note the company in default whether they made payments or not, because they were running low on cash (in other words, they would’ve breached other covenants after they made their interest payments).
It is clear that iAnthus is being controlled by GGP and this transaction is characterized as a “HOSTILE” plan of arrangement. GGP acted in bad faith , coinciding their move of putting iAnthus into a liquidity crunch with the global pandemic. A pandemic that also caused a short term downturn for the entire US cannabis industry. The top four multi state Cannabis operators have observed upwards of a 300% gain in value since this time with current values between 1-4 billion.
The Board of Directors and Executives are not satisfied with this plan of arrangement as it nearly wipes out all equity from the company. However, the Board had no choice but to agree to the plan proposed by GGP. The Board and Executives do not dispute that the company has sufficient assets to offset the debt, and that the company is being taken for less than pennies on the dollar.
As shareholders, this is our only chance to fight this proposal!