Multi-state cannabis business operator iAnthus Capital Holdings Inc. closed an $11 million bridge note financing to fund the build-outs of facilities of its wholly-owned subsidiary iAnthus New Jersey LLC, which will be subleased to MPX New Jersey LLC.

Associated facilities include the cultivation and manufacturing facility currently under construction in Pleasantville and the current dispensary located in Atlantic City, as well as two prospective satellite dispensaries expected to be leased or purchased and improved by iAnthus NJ pursuant to satellite approval applications filed with the New Jersey Department of Health on Dec. 31, 2020.

iAnthus NJ has issued an $11 million aggregate principal amount of senior secured bridge notes, due Feb. 2, 2023, subject to an earlier maturity in the event iAnthus completes an equity financing resulting in at least $10 million in net proceeds. The secured notes will accrue interest at the rate of 14% per annum decreasing to 8% upon completion of the company’s previously announced recapitalization transaction, payable quarterly as of March 31, 2021. The notes are secured by a security interest in all of the assets of iAnthus NJ, and the company has provided a guarantee in respect of all of the obligations, indebtedness and liabilities of iAnthus NJ under the notes, according to an announcement.

Pursuant to a loan agreement with MPX NJ dated Oct. 24, 2018, iAnthus NJ has the right to convert the principal balance of the loans and accrued interest into a 99% equity interest in MPX NJ subject to certain regulatory approvals.

iAnthus NJ has an option to acquire the remaining 1% of MPX NJ, subject to certain conditions and approvals.