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IAN.CN.TO
id: 1183

iAnthus (IAN) CAD $500k Shareholder Settlement

The settlement terms have been submitted to the court for approval.
$500,000
Cash Settlement
CV-20-00644524
Case number
05/14/2018
Class period Start
04/05/2020
Class period End

iAnthus Capital Holdings (IAN) to settle CAD $500k with investors to end claims related to misleading them about its ability to pay its interest obligations under various debenture agreements.

They had already paid a $2.9M settlement to US investors for the same case.

Outline

Back in 2018, iAnthus borrowed $50M and an additional $20M from Gotham Green Partners. In March 2019, iAnthus also secured a $25M loan from Oasis. In April 2020, iAnthus announced its inability to pay its loans. Following this disclosure, $ITHUF significantly fell, and iAnthus faced a lawsuit from investors.

Timeline

  • April 6, 2020: iAnthus announced it couldn’t make a $4.4M interest payment.

  • This led to a 62% drop in $ITHUF on the same day.

  • April 20, 2020: Investors filed a lawsuit against iAnthus, accusing the company of misleading them about their finances and the special account meant for interest payments.

Background

In May 2018, iAnthus Capital Holdings secured a $50M investment from Gotham Green Partners and set aside $5.72M in a special account for interest payments.

Then, iAnthus borrowed another $20M from GGP in 2019 and also got a $25M loan from Oasis Investments.

However, on February 27, 2020, iAnthus sued Oasis Investments, claiming Oasis was making false accusations about iAnthus' capacity to meet the deadline payments.

In response, on March 16, 2020, Oasis Investments sued iAnthus back, accusing iAnthus of providing "misleading information regarding the financial health and the ability to meet interest payment obligations".

On April 6, 2020, iAnthus announced it couldn't make a $4.4M interest payment, citing poor market conditions and the impact of COVID-19.

This announcement led to $ITHUF dropping by 62% in a single day.

Following this, on April 20, 2020, investors filed a lawsuit against iAnthus. They accused the company of misleading them about their financial situation and prospects.

What can investors expect now?

iAnthus Capital Holdings (ITHUF) agreed to settle with investors to end claims related to misleading them about its ability to pay its interest obligations under various debenture agreements.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Type
Canadian Securities Class Action
Case Status
Stipulative Settlement
Alleged Offence
Mismanagement, 
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Plaintiffs
Timothy Kwong
Defendants
Hadley Ford, Julius Kalcevich
Administrator
EPIQ
Court hearing date
02/20/2024
Exclusion deadline
02/18/2024
Objection deadline
01/31/2024
Trades matching type
FIFO

Frequently Asked Questions

Who is eligible for this settlement?

All persons, who acquired securities of iAnthus Capital Holdings during the period from May 14, 2018 to and including April 5, 2020, and who held some or all of those securities at the close of trading on April 5, 2020.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout

  2. Audit the claim and make sure you get the maximum possible payout

  3. File a claim with the settlement administration

  4. Correspond with the settlement administration to resolve emerging issues

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.