iAnthus Capital Holdings Inc (OTCMKTS:ITHUF) is one of the big explosions in play right now. The stock is up 165% in the past month on huge volume after announcing an accelerated path in its pivot into the cannabis space. The focus has been on acquiring GrowHealthy Holdings, LLC, which could place the company as a serious player in the space in the Southeastern US. And recent catalysts appear to confirm this path, sending shares sharply higher.
To wit: the company just announced that it has acquired through merger and acquisition transactions substantially all of the assets of GrowHealthy, and certain related subsidiaries. According to the release, “the acquisition completes iAnthus‘ full-scale entry into the rapidly expanding Florida medical cannabis market, which is projected by Arcview Market Research to grow into a US$1 billion market by 2020 and which has seen a 300% increase in the number of registered patients over the past six (6) months. iAnthus previously acquired approximately six percent (6%) of GrowHealthy in a preferred share purchase in October 2017.”
iAnthus Capital Holdings Inc (OTCMKTS:ITHUF) bills itself as a company that, through its wholly-owned subsidiary iAnthus Capital Management, LLC, provides investors diversified exposure to “best-in-class” licensed cannabis cultivators, processors, and dispensaries throughout the United States. iAnthus currently owns, operates or has partnered with marijuana license holders in Massachusetts, Vermont, Colorado and New Mexico.
As reported, “founded by entrepreneurs with decades of experience in investment banking, corporate finance, law and healthcare services,” iAnthus provides a “unique combination” of capital and hands-on operating and management expertise. The Company leverages these skills to support “a diversified portfolio of cannabis industry investments for our shareholders.”
Moreover, iAnthus Capital Holdings, Inc. engages in the delivery of solutions for financing, developing, and managing state-licensed cannabis cultivators and dispensaries in the United States. The company is headquartered in New York, New York.
According to company materials, “iAnthus Capital Holdings, Inc. owns and operates best-in-class licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry. Founded by entrepreneurs with decades of experience in operations, investment banking, corporate finance, law and healthcare services, iAnthus provides a unique combination of capital and hands-on operating and management expertise. The Company harnesses these skills to support operations across five states. For more information, visit www.iAnthusCapital.com.”
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As discussed above, ITHUF shares have been booming higher as the completes its pivot into the high-flying cannabis space.
“As one of the largest states in the U.S. with a population of nearly 21 million people and favorable demographics, Florida and its medical cannabis market provide a tremendous opportunity for iAnthus and its shareholders. The state’s population includes a large percentage of older adults who can derive significant benefits from medical cannabis, and the Florida program has witnessed a rapid rise in its registered patient base since passage of the law,” said Randy Maslow, President of iAnthus.
“GrowHealthy, in particular, boasts a state-of-the-art 200,000 square foot cultivation and processing facility in Lake Wales, a flagship dispensary location in a densely populated area of Palm Beach County, and the opportunity to open up to 25 dispensaries in Florida currently and more in the future,” Mr. Maslow continued. “The GrowHealthy cultivation and operations team has already established itself as a leader in Florida’s medical cannabis market, and we look forward to contributing iAnthus’ capital and operational resources to fully build out GrowHealthy’s infrastructure and capitalize on the enormous opportunity provided by Florida’s medical cannabis market.”
At this time, carrying a capital value in the market of $108.5M, ITHUF has a stash ($1.8M) of cash on the books, which is balanced by about $948K in total current liabilities. One should also note that debt has been growing over recent quarters. ITHUF is pulling in trailing 12-month revenues of $1.8M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 23.9%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $ITHUF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $ITHUF, either long or short, and we have not been compensated for this article.