iAnthus Capital Holdings Inc (ITHUF)

[oiledgearz]

There is potential for a good amount of dilution. But first, present outstanding share count is app 45,000,000... net proceeds of $43,000,000 means app$1/share to book value (using 20,000,000 for the loan repayment obviously reduces liability and increases equity)

With the high yield senior secured notes, there is potential for 13,000,000 shares to be issued (40Million/US$3.08), not saying that will be the case for all or in part, although Ianthus can force it if in one year, the share price is greater than US5.14. I imagine at that point Ianthus will determine which way works out best in view of cash flow and cash needs.

Notes come with warrants to purchase 6,670,000 shares at US$3.60, dilutive if exercised, but Ianthus would get US$24,000,000.

And then there are units issued- $10,000,000 worth at $2.57 translates to 3,900,000 shares that is immediately dilutive + warrants for another 2,590,000 at $3.86 (dilutive if exercised, but gives $10,000,000 to Ianthus )

Still, both parties are obviously confident that this is all money well invested which will benefit all shareholders- and GGP will be a big one- in the long run.