iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF), and MPX Bioceutical Corporation (CSE: MPX) (OTC: MPXEF) have announced this morning that the companies signed an agreement to merge all of their combined assets into one public entity. This agreement is the first public to public merger of two cannabis companies in the U.S.A.
MXP shareholders will receive 0.1673 shares of iAnthus for each common share owned of the company, which will be valued at $1.28 per common share. The combined company will now operate and own assets in 10 different U.S. states including 56 retail locations and 14 cultivation & processing facilities.
The board of directors of the combined pubco will grow to 7 total, with 3 of the directors being nominated by MPX.
The press releases states that the 10 states (Arizona, Maryland, Nevada, California, Massachusetts, New York, Florida, Massachusetts, Vermont, Colorado, New Mexico) that the new company will operate out of will be capable of generating $16.2 billion in yearly cannabis sales by 2022, according to Arcview Market Research and BDS Analytics.
Hadley Ford, CEO of iAnthus gave this statement in the press release:
“This is a watershed moment for iAnthus, as we nearly double the size of our national footprint in the United States. iAnthus will be uniquely positioned for success on the U.S. East Coast, while solidifying our cultivation and retail presence with the additions of California, Nevada, Maryland and Arizona. Since its inception, iAnthus has been strategically focused on building scale, and this announcement crystallizes our positioning as one of the largest multi-state operators in North America.”