iAnthus Capital contracts new guaranteed debt even before the closing of the recapitalization transaction

The ink did not dry on the failed call for iAnthus Capital (CSE: IAN) shareholders as part of its recapitalization operation, but the company becomes more indebted. The company announced tonight that it has secured $ 11.0 million in bridge financing, which is secured by its iAnthus assets in New Jersey.

Unsurprisingly, the funding for the secured notes comes from none other than Gotham Green Partners, although it is not clear what portion of the loan is provided by the company. Since GGP is now referred to as a related party, the details of the transaction state that “some of the lenders may be considered related parties” while specifically describing the fund’s involvement.

The secured notes are due to mature on February 2, 2023, and the total loans of $ 11.0 million bear interest at a rate of 14.0% per annum. The interest on the debt will be lowered to 8.0% per annum at the end of the recapitalization operation, while the due date of the debt will be brought forward in the event that the company raises at least 10.0 million euros. dollars of net proceeds through equity financing.

Debt must be secured by all of the assets of iAnthus NJ, with the Company also providing security against all indebtedness.

The proceeds of the financing are to be used for the construction and improvement of the New Jersey facilities leased or owned by the New Jersey branch. Once completed, the facilities will then be sublet to MPX New Jersey.

iAnthus Capital last traded at $ 0.245 on the CSE.

The information for this briefing was found through Sedar and iAnthus Capital Holdings Inc. The author has no title or affiliation related to this organization. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title. The author does not hold any license.

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