iAnthus Capital Holdings Inc., which owns, operates and partners with regulated U.S. cannabis operations, announced Feb. 3 the closing of its acquisition of 100% of the equity interests of MPX New Jersey LLC, a medical cannabis permit holder in New Jersey.
The company’s wholly owned subsidiary iAnthus New Jersey LLC, pursuant to a Oct. 24, 2018, loan agreement with MPX NJ, exercised its right to convert the principal balance of the loans and accrued interest owed thereon into a 99% equity interest in MPX NJ, subject to certain regulatory approvals. In addition, pursuant to an option agreement on that date with MPX NJ and its equityholders, iAnthus NJ exercised its option to acquire the remaining 1% of MPX NJ for nominal consideration, again subject to certain regulatory approvals.
iAnthus NJ exercised its rights under the Loan Agreement and Option Agreement on Feb. 3, 2021, and Feb. 25, 2021, respectively.
On Jan. 7, the New Jersey Cannabis Regulatory Commission approved iAnthus NJ’s acquisition of 100% of the equity interests of MPX NJ pursuant to the Loan Agreement and Option Agreement, and on Feb. 1, iAnthus NJ closed the acquisition.
Last year, iAnthus NJ issued $11 million aggregate principal amount of senior secured bridge notes, the net proceeds of which are being used primarily for the construction and improvements of facilities leased by iAnthus NJ. Since then, significant construction progress has continued at its cultivation and manufacturing facility in Pleasantville, according to the announcement, and intends to begin operations in the near term.
After approvals from the CRC, MPX NJ expects to open its dispensary facility in Atlantic City in the next few months, and then two prospective satellite dispensaries in the state upon approval of its pending satellite applications filed with the New Jersey Department of Health in December 2020.