I would be real careful. 7:52 PM ET, 06/11/2020 - PR Newswire
NEW YORK and TORONTO, June 11, 2020 /PRNewswire/ - iAnthus Capital Holdings, Inc. ("iAnthus" or the "Company") (CSE: IAN) (OTCQX: ITHUF), which owns, operates, and partners with regulated cannabis operations across the United States, announced today that the filing of the Company's audited annual financial statements for the year ended December 31, 2019, the related management's discussion and analysis and certificates of its CEO and CFO (collectively, the "Required Filings") with Canadian securities regulators will likely be delayed until after the extended filing deadline of June 15, 2020.
As previously disclosed, the Company is relying on the general order of the Ontario Securities Commission (the "OSC") made under Ontario Instrument 51-502 entitled "Temporary Exemption from Certain Corporate Finance Requirements" ("OSC Instrument 51-502"), dated March 23, 2020, to postpone the filing of the Required Filings, as a result of logistical issues and delays caused by the COVID-19 pandemic. The OSC and other securities regulatory authorities in Canada have granted coordinated blanket exemptions allowing issuers an additional 45-day period to complete their regulatory filings that were otherwise due during the period from March 23, 2020 to June 1, 2020.
The Company is working diligently to file the Required Filings as soon as feasible. Failure to file the Required Filings by June 15, 2020 may result in the OSC taking action against the Company, including, but not limited to, the issuance of a cease trade order ("CTO") against the Company. If a CTO is issued, the Company expects the CTO to affect trading in all securities of the Company by securityholders of the Company, to apply in each jurisdiction in Canada in which the Company is a reporting issuer and to remain in effect until such time as the Company has made the Required Filings. If the Required Filings are made within 90 days of the date of the CTO, such filings would constitute the Company's application to have the CTO revoked.
Interest Payment Obligations
As of June 11, 2020, the aggregate principal amount of iAnthus' debt obligations total $159.1 million, including $97.5 million of 13.0% senior secured convertible debentures (the "Secured Debentures"), $60.0 million of 8.0% unsecured convertible debentures (the "Unsecured Debentures) and $1.6 million of other debt obligations. The Company previously announced on April 6, 2020 that it did not make applicable interest payments on the Secured Debentures and Unsecured Debentures due on March 31, 2020. The Company does not expect to be in a position to make interest payments on the Secured Debentures or Unsecured Debentures due on June 30, 2020.
