iAnthus Capital Holdings (CSE: IAN) (OTCQB: ITHUF) agreed to settle a five-year-old lawsuit over its acquisition of MPX Bioceutical Corp., the company said Wednesday.
The New York-based multistate operator will issue 5 million common shares at C$0.01 per share to Ninth Square Capital Corporation, which alleged oppressive conduct in the 2019 MPX deal, according to a statement. The settlement includes no admission of wrongdoing.
The resolution comes as iAnthus deals with declining revenue and mounting legal battles. The New York-based company reported third-quarter revenue fell 6.3% to $40.3 million, according to financial results released last month. The company faces a working capital deficit of $31.4 million and an accumulated deficit of $1.3 billion.
The settlement helps resolve one piece of litigation for iAnthus, which still faces other legal challenges including a RICO lawsuit filed in June by Maryland dispensary LMS Wellness. That suit alleges iAnthus diverted at least $4.5 million from LMS to prop up struggling subsidiaries, with the company accused of funneling money into three Maryland entities — Greenmart of Maryland LLC, Budding Rose Inc., and Rosebud Organics Inc.
The company brought in former Curaleaf executive Richard Proud as CEO last year in July to help turn around operations. Proud replaced interim chief Robert Galvin, who remained as chief operating officer.
iAnthus shares will be issued under exemptions from Canadian securities laws and U.S. Securities Act registration requirements, the company said. The shares will be issued as “restricted securities.” Ninth Square filed its initial statement of claim in August 2019.
[[{“value”:”The settlement, which includes no admission of wrongdoing, resolves one of several legal challenges facing the struggling multistate operator.
The post iAnthus settles long-running lawsuit over MPX deal appeared first on Green Market Report.”}]] Read More
