Major US Cannabis Merger Between MPX and iAnthus

 IAnthus Capital Holdings, Inc., (CSE: IAN, OTCQX: ITHUF), and MPX Bioceutical Corporation (CSE: MPX; OTC:MPXEF) announced today that both companies have signed an arrangement agreement pursuant to which iAnthus will unite with MPX in an all-stock trade with offered equity consideration to MPX shareholders valued at $835 million prior to giving effect to MPX International (defined below) and assuming all of MPX’s dilutive securities are exercised prior to the completion of the transaction. The Agreement represents the initial public to people merger transaction in U.S. cannabis history.

The Agreement provides that MPX shareholders will be eligible to receive 0.1673 common shares of iAnthus for each common share of MPX held (the”Exchange Ratio”), representing a consideration of approximately $1.28 per MPX average share, a premium of 30.6% based on the closing price of iAnthus and MPX common shares on October 17, 2018. In addition, each MPX shareholder will receive common shares of the newly formed MPX International that will hold all of the non-U.S. businesses of MPX. MPX International will apply to list on the Canadian Securities Exchange (the”CSE”) with the listing to occur contemporaneously with closing of the trade. All references to currency are in Canadian dollars. 

The combined company, excluding MPX International, will encompass cannabis licenses and operations in 10 states that will allow iAnthus to operate 14 facilities and 56 locations. Because of the trade, iAnthus will add retail and/or production capacities in Massachusetts, Maryland, Nevada, California and Arizona. These additional licenses complement iAnthus’ existing assets in New York, Florida, Massachusetts, Vermont, Colorado, and New Mexico, forming super-regional footprints in the western and eastern United States.

The 10 states combined are projected to generate approximately $16.2 billion in annual cannabis sales by 2022, according to Arcview Market Research and BDS Analytics.

“This is a watershed moment for iAnthus, as we almost double the size of our national footprint in america. IAnthus will be uniquely positioned for success on the U.S. East Coast, while solidifying our cultivation and retail presence with all the improvements of California, Nevada, Maryland and Arizona,” said Hadley Ford, CEO of iAnthus. “Since its inception, iAnthus has been focused on building scale, and this announcement crystallizes our positioning as one of the biggest multi-state operators in North America.”

MPX is a vertically integrated, multi-state cannabis operation which offers staffing, management, procurement, advisory, financial, real estate leasing, logistics, and administrative solutions to medicinal cannabis enterprises across its holdings in five nations.

“MPX is dedicated to providing the most powerful value possible to our shareholders, and we feel that working with a best-in-class operator such as iAnthus supplies us with the best chance to achieve that goal,” said Scott Boyes, Chief Executive Officer of MPX.   “The nascent U.S. cannabis market remains in a land-grab stage, and we feel that our footprint when coupled with iAnthus, provides our investors with the strongest potential exposure to this volatile marketplace.”

Released at Thu, 18 October 2018 14:46:28 +0000

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