iAnthus Capital Holdings Inc (ITHUF)

[Longerboard]

Why would Hadley do 2 hard money deals, the second for $20M senior secured debt? Obviously, because he knows the consequences of running out of cash and is very worried about reaching free cash flow in the next 15 months which implies GGP can leverage its senior secured position to the massive disadvantage of common equity holders.

To the extent the ITHUF window for loosening regulations in the pot space is 15 months, the sooner this happens and to what extent, will drive how quickly and how high the stock will go. In a very loose regulatory environment, the availability of capital will increase dramatically and its cost will dive much lower. Common shareholders will all become residents on Big Rock Candy Mountain!

WRT management, I don't know the organizational dynamics, only what I have read and heard in presentations. They all seem solid. Hadley seems like a smart, nice Wall Street guy who got way over his ski's regarding market development and "gotta be big" acquisitions. He is treating his awarded (not purchased) shares like an ATM, by selling, which puts downward pressure on the stock at the expense of common shareholders. These are all seriously wrong moves in this environment, where more appropriate behavior is hunker down and survive. With the team at ITHUF, it seems they could shuffle Hadley over to CFO and elevate another to CEO. I don't know if Beth Stavola has the skill set to run an 800 person company, but if she does, I'd lay my money on her.