#United States #New York #Cannabis #Litigation #iAnthus

iAnthus Capital Holdings Provides Key Update on Legal Proceedings

In a significant development, iAnthus Capital Holdings, Inc. has announced the resolution of legal disputes involving Ninth Square Capital Corporation. This update comes as the company, known for its extensive operations in the regulated cannabis market across the United States, seeks to clarify the impact of these legal matters on its business.

Background of the Litigation

The issue began on August 8, 2019, when Ninth Square filed a claim against iAnthus, alongside its wholly-owned subsidiary MPX Bioceutical ULC and MPX International Corporation in the Ontario Superior Court of Justice. The claim was based on allegations of oppressive conduct related to arrangements between iAnthus and the predecessor of MPX ULC. These allegations led to what is termed the Consolidated Claims, encompassing all related actions in the legal dispute.

Settlement Agreement Details

On December 3, 2024, a significant turning point occurred when iAnthus entered into a settlement agreement with Ninth Square and others involved in these litigations. While the exact terms of the settlement have not been publicly detailed, it was confirmed that this resolution includes the issuance of 5,000,000 common shares of iAnthus to Ninth Square, priced at C$0.01 per share.

Importantly, the settlement does not imply any admission of wrongdoing or liability on part of iAnthus, MPX ULC, or the other defendants. The company has stated its commitment to vigorously contest the allegations outlined in the Consolidated Claims.

Regulatory Considerations

The issuance of shares under the settlement is set to comply with Canadian securities laws, as it will be offered under a prospectus exemption without a holding period. Furthermore, this corporate maneuver also aligns with the U.S. Securities Act, specifically under Rule 903 of Regulation S, which provides an exemption from the registration requirements for these transactions. Consequently, these shares will be classified as restricted securities, meaning they cannot be sold or offered in the United States unless they comply with relevant registration laws or exemptions.

About iAnthus

iAnthus Capital is renowned for owning and operating licensed cannabis cultivation, processing, and retail facilities spread across the United States. With a commitment to quality and compliance, the company aims to create a robust operational framework for legal cannabis operations, contributing positively to the market.

Looking Ahead

It’s crucial to note that while this settlement is a decisive moment for iAnthus, the company continues to face risks and uncertainties, particularly concerning its financial performance and future operations. All statements regarding the settlement and the company’s operational outlook are forward-looking, relying on the current beliefs and assumptions of iAnthus management.

As part of its ongoing commitment to transparency, iAnthus encourages stakeholders to consider these developments carefully in light of other important factors outlined in its regulatory filings, particularly those submitted to the SEC and Canadian authorities.

In conclusion, this settlement represents a pivotal point for iAnthus, potentially allowing the company to refocus its energy on operational growth amid a tumultuous legal backdrop. Stakeholders are encouraged to stay tuned for further updates and information regarding the potential implications for iAnthus' future trajectory in the cannabis industry.