iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQB: ITHUF) is selling three dispensaries and two processing/cultivation facilities in Arizona to Pitchfork Enterprises, also known as Sonoran Roots, for approximately $36.5 million. iAnthus said the deal is part of its ongoing strategy to strengthen its balance sheet and focus on the most promising markets. The deal is expected to close in the first quarter of 2025.
“This transaction aligns with our ‘smart growth, strong margins’ strategy by enabling us to double down on markets where we can deliver the most value to our customers and long-term business interests,” said Richard Proud, CEO of iAnthus. “By streamlining our Arizona operations, we are laying the foundation for a future defined by operational excellence, unmatched customer loyalty, and enhanced profitability. Our continued presence in Arizona through our Health for Life dispensary in Crismon, AZ, and our trusted MPX brand underscores our commitment to delivering exceptional products and experiences in every market we serve.”
iAnthus said the deal would allow the company to redirect resources to its growth initiatives in Florida, Maryland, New Jersey, Massachusetts and New York. When the company last reported earnings, it had announced other asset sales in the states of Vermont and Nevada.
Pitchfork is a leading Arizona operator. With this purchase, it will operate seven Ponderosa Dispensary retail locations serving Chandler, Flagstaff, Glendale, Mesa, Phoenix, Queen Creek, and Tucson. Production operations include indoor cultivation, processing, and extraction, focused on its premium-quality Sonoran Roots flower and Canamo Concentrates lines, as well as sales and distribution. The transaction consists of $20 million in cash at the closing and a secured promissory note to be issued by Sonoran Roots in the principal amount of $16.5 million.
“We are thrilled to announce the acquisition of select iAnthus Arizona assets, a transformational step for us in Arizona. This transaction is highly accretive and strategically enhances our market position, increasing our Ponderosa Dispensary footprint to seven retail locations with broad geographical coverage,” said Michael O’Brien, CEO of Sonoran Roots. “We are excited to continue providing exceptional cannabis products and experiences to customers in these locations.”
[[{“value”:”iAnthus has turned its focus to the east coast for its future growth.
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