Interested in a current breakout to new record highs in the small-cap cannabis space? Check out iAnthus Capital Holdings Inc (OTCMKTS:ITHUF) right away. The stock has just blasted off over the past 48 hours on a jump in volume to push above its January highs, and above the $5/share level on a move that appears to have been inspired by key news from the company.
Specifically, iAnthus just announced that Mayflower Medicinals, Inc. (a non-profit affiliate of the iAnthus’s wholly-owned Massachusetts management services company, Pilgrim Rock Management, LLC – Mayflower’s financial operations are consolidated with iAnthus) has signed a Host Community Agreement with the City of Lowell, Massachusetts, to operate a Medical Marijuana Treatment Center in Lowell, MA. According to the release, “Mayflower intends to diligently pursue a Special Permit at the site. If granted, the dispensary is expected to be one of only two operating dispensaries within the Lowell city limits.“
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 noted above, shares are hitting new record highs this week. Overall, that tacks on nearly 40% for the trailing month of action, with volume bursting about 65% above the stock’s trailing average for shares changing hands. That uptick in interest could be important given that the stock is just kicking around a little over 26 million shares in total on the floating market.
In other words, this is a pretty tight float, and we are seeing a bust higher to hit some stops for shorts in the stock, and it’s all happening on above-average volume. That picture represents squeeze potential if the move starts to feed on itself, so this may be a stock to keep on the trading radar.
“The Commonwealth of Massachusetts and the City of Lowell have abided by high program standards that are firmly focused on patient care and regulatory compliance,” said John Henderson, Chief Development Officer of iAnthus. “Mayflower is honored to have successfully completed its host community agreement with Lowell, which adds significant value to the project by documenting a supportive relationship between the City and the development of the Registered Marijuana Dispensary site.”
Currently trading at a market capitalization of $215M, ITHUF has a significant war chest ($3.3M) of cash on the books, which compares with about $19M 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 $2.7M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 102.7%. We will update the story again soon as developments transpire. 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.