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ITHUF.US
id: 631

iAnthus Capital Holdings (ITHUF) $2.9M Shareholder Settlement

It is still possible to file a late claim. The court will decide whether to accept late claims or not.
S.D. New York
Court
1:20-CV-03135
Case number
14 May 2018
Class period Start
10 Jul 2020
Class period End
17 Apr 2024
Claim deadline
iAnthus Capital Holdings (ITHUF) agreed to settle $2.9M with investors to end claims related to misleading about its ability to pay its interest obligations under various debenture agreements.

They are also paying CAD $500k settlement to Canadian investors for the same case.

Outline

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 their inability to pay their loans. Following this disclosure, $ITHUF significantly fell, and iAnthus faced a lawsuit from investors.

Timeline
  • April 6, 2020: iAnthus announced they couldn’t make a $4.4M interest payment.
  • This led to a 62% drop in $ITHUF 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.
Background

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 that it "provided 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 $2.9M with investors to end claims related to misleading 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.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.07
Filing date
15 April 2020
Plaintiffs
Jose Antonio Silva
Attorneys
Bronstein, Gewirtz & Grossman, LLC (New York, NY), Pomerantz LLP (New York, NY)
Defendants
Hadley C. Ford, Julius John Kalcevich, Jason Adler.
Judge
Hon. Naomi Reice Buchwald
Administrator
A.B. Data Ltd
Settlement agreement date
2023-03-21
Court hearing date
10 April 2024
Exclusion deadline
20 March 2024
Objection deadline
20 March 2024
Trades matching type
FIFO
+$2,900,000
Cash Settlement Amount

Frequently Asked Questions

iAnthus Capital Holdings Inc

iAnthus Capital Holdings, Inc. owns and operates licensed cannabis cultivation, processing, and dispensary facilities in the United States. It offers cannabis flower and trims, such as packaged flo...

    Ticker
    ITHUF.US
    ISIN
    CA45074T1021
    CIK
    1643154
    Sector
    Healthcare
    Industry
    Drug Manufacturers - Specialty & Generic
    Country
    USA
    Address
    214 King Street West, Toronto, ON, Canada, M5H 3S6