THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
TORONTO and NEW YORK, Oct. 27,
2016 /CNW/ - iAnthus Capital Holdings, Inc., (CSE: IAN) ("iAnthus" or the "Company"), today announced that it has
entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. and including Beacon Securities Limited
(the "Underwriters") pursuant to which the Underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a
short form prospectus, an aggregate of units (the "Units") at a price of $2.10 per Unit (the
"Offering Price") for aggregate gross proceeds to iAnthus of $15,015,000 (the "Offering").
Each Unit will be comprised of one common share of the Company (a "Common Share") and one-half of one Common Share purchase
warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant will be exercisable to acquire one Common Share (a
"Warrant Share") for a period of one year following the closing date of the Offering (the "Closing Date") at an exercise price of
$3.00 per Warrant Share. The Warrants will be subject to a 30-day forced exercise provision if the
Company's daily volume weighted average share price is greater than $4.00 for 15 consecutive trading
days.
The Company has agreed to grant the Underwriters an over-allotment option (the "Over-Allotment Option") to purchase up to an
additional 1,072,500 Units at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30
days following the Closing Date. If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering
will be $17,267,250.
The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada, except Quebec. The Company intends to use the net proceeds from the
Offering for working capital and general corporate purposes. The Offering is expected to close on November
17, 2016 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and
stock exchange approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory
authorities.
The securities being offered have not been, nor will they be, registered under the United
States Securities Act of 1933, as amended, and may not be offered or sold in the United
States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the
registration requirements. This press release will not constitute an offer to sell or the solicitation of an offer to buy nor will
there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
About iAnthus Capital Holdings
iAnthus Capital Holdings, Inc., through its 100% owned subsidiary, iAnthus Capital Management, LLC, delivers a comprehensive
solution for financing and managing licensed cannabis cultivators, processors and dispensaries throughout the United States. Founded by entrepreneurs with decades of experience in investment banking, corporate
finance, law and healthcare services, iAnthus provides a unique combination of capital and hands-on operating and management
expertise. The Company harnesses these skills to support a diversified portfolio of cannabis industry investments for its
shareholders, including direct equity investments in for-profit license holders and lending facilities coupled with management
services to not-for-profit license holders. For more information, visit www.ianthuscapital.com.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning
the specific factors disclosed here and elsewhere in iAnthus' periodic filings with Canadian securities regulators. When used in
this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar
expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements including the anticipated closing and closing date of the
Offering and anticipated use of proceeds and other statements of fact.
Although iAnthus has attempted to identify important factors that could cause actual results, performance or achievements to
differ materially from those contained in the forward-looking statements, there can be other factors that cause results,
performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining
regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in
activities currently considered illegal under US Federal Laws; changes in laws; limited operating history; reliance on management;
requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion
and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of
future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events
predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news
release are made as of the date of this release. iAnthus disclaims any intention or obligation to update or revise such
information, except as required by applicable law, and iAnthus does not assume any liability for disclosure relating to any other
company mentioned herein.
The Canadian Securities Exchange has not reviewed, approved or disapproved the con-tent of this news
release.
SOURCE iAnthus Capital Holdings Inc.
