iAnthus Capital Holdings, Inc. (CSE:IAN) (OTCQB:ITHUF), owns, operates, and partners with licensed cannabis operations throughout the United States. The company’s subsidiary Citiva Medical, LLC, which was acquired in early February holds one of only ten medical marijuana licenses issued by New York State.
The company recently announced the signing of two new leases, one in Brooklyn, New York, and one in Tampa, Florida, both in high traffic areas.
iAnthus’ Brooklyn Lease
iAnthus today announced the signing of a lease on a space in Brooklyn, New York that will be home to its flagship dispensary - one of only two dispensaries operating in New York City’s most populous borough. The company will also be operating the only dispensary in Staten Island.
The property is located just across the street from Barclays Center at 202 Flatbush Avenue. It’s one of the borough’s most highly trafficked areas. Construction of the 2,000 square foot dispensary is expected to be completed in the fourth quarter of 2018.
iAnthus Tampa Lease
In addition to the Brooklyn space, a Tampa, Florida lease was announced. iAnthus subsidiary GrowHealthy Holdings, LLC, along with its affiliate, McCrory's Sunny Hill Nursery, LLC operate one of Florida’s 13 licensed Medical Marijuana Treatment Centers licensed to provide medical cannabis under Florida's medical marijuana law. iAnthus purchased Florida-based GrowHealthy for $48 million in late January.
The company plans to open another dispensary in the downtown Tampa location. It will be the Company’s second location in Florida. The company runs another dispensary in Palm Beach County.
The Tampa dispensary will be located in a 2,100 square foot free-standing building at the intersection of a heavily trafficked highway and state road in a densely populated area of Tampa. The location is expected to open in the third quarter of 2018.
iAnthus Operates In Six States
iAnthus Capital Holdings, Inc. owns and operates licensed cannabis cultivation, processing and dispensary facilities across six states with a focus on the East Coast.
In addition to the Company’s dispensary announcements, an iAnthus press release states that it has received US$2 million of principal repayment and US$0.9 million of accrued interest in early February from The Green Solution, a Colorado-based dispensary chain.
iAnthus and TGS have mutually agreed to an extension for the remaining US$5.5 million of credit facility until July 31, 2018, with an interest rate of 23%. Under the amended credit facility, TGS is required to make principal repayments with accrued interest in April and July 2018.
Is iAnthus Undervalued?
iAnthus held an investor meeting in New York City earlier this month in which the company claimed that it was undervalued. In the presentation, the company pointed out that it has eight cultivation facilities, five processing facilities and will have 41 dispensaries upon opening of all 25 GrowHealthy dispensaries.
Hadley Ford, Chief Executive Officer of iAnthus also pointed out that it has 100% ownership of a Boston Massachusetts property where it will operate one of only three dispensaries in Boston. Recreational sales are expected to begin in July.
In Florida, home to 21 million residents, the medical marijuana market is expected to reach $1 billion within a few years. iAnthus could expand its GrowHealthy dispensary to 25 locations in the Sunshine State. “Florida will be the second best market after California,” said Ford, who added, “Dispensaries there can do $1.5 to $ 2 million a year.”
iAnthus Continues Expansion
The purchase of Citiva Medical, LLC expanded the company’s holdings to six states, including three populous East Coast states, Florida, Massachusetts, and now New York. The deal cost iAnthus roughly $18 million in cash and stock options.
With the New York deal, the company now owns a cultivation and processing facility and four dispensaries in the state, putting them in the lead in New York’s mostly untapped market. New York has only issued ten licenses one of which is held by Citva.
“Following our recent acquisitions of Citiva and GrowHealthy, we are excited to close in on the new dispensary locations and begin their respective build-outs,” said Hadley Ford, CEO of iAnthus. “Through Citiva in New York and GrowHealthy in Florida, we have a significant presence in two of the largest markets on the East Coast.”
As of publication, iAnthus has a market capitalization of 89.42M million and is trading in the $3.20 range, down from its 52-week high of $5.08.
Learn more about iAnthus at the Company’s websites: www.iAnthusCapital.com