iAnthus Provides Update on Timing of Annual Filings and Required Interest Payments

iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF), owns, operates, and partners with regulated cannabis operations across the United States. The company announces that the filing of the Company’s audited annual financial statements for the year ended December 31, 2019, the related management’s discussion and analysis and certificates of its CEO and CFO with Canadian securities regulators will likely be delayed until after the extended filing deadline of June 15, 2020.

iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry. Founded by entrepreneurs with decades of experience in operations, investment banking, corporate finance, law and healthcare services, iAnthus provides a unique combination of capital and hands-on operating and management expertise. iAnthus currently has a presence in 11 states and operates 35 dispensaries (AZ-4, MA-1, MD-3, FL-16, NY-3, CO-1, VT-1 and NM-6 where iAnthus has minority ownership).

As previously disclosed, the Company is relying on the general order of the Ontario Securities Commission made under Ontario Instrument 51-502 entitled “Temporary Exemption from Certain Corporate Finance Requirements”, dated March 23, 2020, to postpone the filing of the Required Filings, as a result of logistical issues and delays caused by the COVID-19 pandemic. The OSC and other securities regulatory authorities in Canada have granted coordinated blanket exemptions allowing issuers an additional 45-day period to complete their regulatory filings that were otherwise due during the period from March 23, 2020 to June 1, 2020.

The Company is working diligently to file the Required Filings as soon as feasible. Failure to file the Required Filings by June 15, 2020 may result in the OSC taking action against the Company, including, but not limited to, the issuance of a cease trade order against the Company. If a CTO is issued, the Company expects the CTO to affect trading in all securities of the Company by securityholders of the Company, to apply in each jurisdiction in Canada in which the Company is a reporting issuer and to remain in effect until such time as the Company has made the Required Filings. If the Required Filings are made within 90 days of the date of the CTO, such filings would constitute the Company’s application to have the CTO revoked.

Interest Payment Obligations

As of June 11, 2020, the aggregate principal amount of iAnthus’ debt obligations total $159.1 million, including $97.5 million of 13.0% senior secured convertible debentures (the “Secured Debentures”), $60.0 million of 8.0% unsecured convertible debentures (the “Unsecured Debentures) and $1.6 million of other debt obligations. The Company previously announced on April 6, 2020 that it did not make applicable interest payments on the Secured Debentures and Unsecured Debentures due on March 31, 2020. The Company does not expect to be in a position to make interest payments on the Secured Debentures or Unsecured Debentures due on June 30, 2020.

The Strategic Alternatives Review Process

iAnthus continues to have Canaccord Genuity Corp. engaged as its financial advisor to assist the Special Committee in connection with the previously announced Strategic Alternatives Review Process. The Strategic Alternatives Review Process is ongoing and there can be no assurance as to what, if any, alternative might be pursued by the Company or whether any such alternative would provide any value to the Company’s shareholders. In accordance with applicable disclosure requirements, the Company will disclose any further updates with respect to the Strategic Alternatives Review Process if and when they occur.