iAnthus Capital Holdings entered into a term sheet for a senior secured term loan of up to $50 million from one or more investment funds managed by Torian Capital Partners, an investor in the global cannabis industry.
The term loan is expected to be made available in two tranches of $25 million, each with substantially similar terms.
The net proceeds of the term loan, when completed, will be used to support iAnthus’ near-term growth efforts, which are expected to include ongoing expansion of iAnthus’ Florida footprint and the build-out of new Be. retail locations in Nevada, New Jersey and New York.
“Reducing our cost of capital has been one of our key goals for this year. We believe this is a great opportunity to add strength to our balance sheet as we continue to invest in our key expansion initiatives, along with people, systems and brands,” said Hadley Ford, CEO of iAnthus. “This transaction will position us well as we continue our strategic investments to take advantage of the once-ever opportunity presented by the cannabis industry.”
The term loan will be secured by a first-priority lien on all current and future assets of the Company and its affiliates, subject to certain exceptions, including applicable cannabis regulations, and will be guaranteed by all current and future affiliates of the company. Each tranche will bear interest at a rate of 9.0% per annum, payable quarterly in arrears during their respective terms and each tranche will mature 36 months from the date of its advance.
Following the 12-month anniversary from the date of advance of each tranche, iAnthus may prepay the outstanding principal amount of the such tranche: (i) in year two, upon payment of 109% of the principal amount outstanding and (ii) in year three, upon payment of 104.5% of the principal amount outstanding.
iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the U.S, providing investors diversified exposure to the U.S. regulated cannabis industry.
