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.
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.
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.
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.