iAnthus Capital Holdings, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired iAnthus Capital Holdings, Inc. (“iAnthus” or the “Company”) (Other: ITHUF) securities during the period from May 14, 2018 through April 6, 2020 (the “Class Period”). Investors have until June 15, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that iAnthus omitted materially adverse facts about the Company’s ability to pay its interest obligations under various debenture agreements.
In May 2018, the Company entered into the $50 million 2018 Debenture Agreement with Gotham Green Partners (“GGP”). Among other things, that agreement provided for the withholding and escrow of $5,722,222.22 from the 2018 Debenture proceeds to pay one year’s interest on the 2018 Debentures in the event of iAnthus’ inability to make its interest payments under the agreement. Then, on September 30, 2019, iAnthus and GGP entered into the Amended Debenture Agreement, which provided an additional $20 million to the Company. The Amended Debenture Agreement included the provision from the 2018 Debenture Agreement that provided for the withholding and escrow of $5,722,222.22 to pay one year’s interest under the Amended Debenture Agreement in the event that iAnthus was unable to make the required interest payments.
Although iAnthus never disclosed that the $5.72 million in escrowed funds was not available to fund iAnthus’ interest payments, on April 6, 2020, iAnthus announced that it had defaulted on $4.4 million in interest payments to GGP under the Amended Debenture Agreement on March 31, 2020. On this news, shares of iAnthus fell over 61%, closing at $0.179 per share on April 6, 2020.
If you acquired iAnthus securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.