Multistate cannabis firm iAnthus secured a $50 million investment from Gotham Green Partners, a marijuana-focused private equity firm based in New York.
The deal, announced Monday, is one of the largest investments by a single investor in a U.S.-based publicly traded cannabis firm, according to a news release.
Net cash proceeds to the firm are roughly $46 million after deductions of various fees and structuring costs, the company said in a news release.
The new capital will be used by iAnthus to repay a $20 million one-year note to VCP Bridge, build out the firm’s New York and Florida operations and expand into new markets, CEO Hadley Ford said in a statement.
The New York-based company – which is traded as IAN on the Canadian Securities Exchange and ITHUF on the OTC Venture market – owns and operates seven licensed cannabis cultivation, processing and dispensary facilities in multiple states.
In the past year, iAnthus has acquired five licensed operators in Florida, Massachusetts and New York.
For fiscal year 2017, iAnthus reported revenue of $2.4 million, up more than 600% from 2016.
The debt and equity securities were issued on a prospectus-exempt basis and are subject to a hold period in Canada of four months and a day from the date of issuance and applicable U.S. securities laws.
Gotham Green may convert its Class A shares into common shares beginning July 2, 2018.
