Shares of iAnthus Capital Holdings Inc (OTCMKTS:ITHUF) have been in a rapid dive, particularly over the past two weeks as the cannabis and CBD space has come under growing scrutiny due to its ties with the mysterious string of disease and death related to vaping. To help mitigate this narrative, the company just announced its response to the passage of the Secure and Fair Enforcement Banking Act of 2019 by the House of Representatives.
“Because cannabis remains federally illegal, banks have been reluctant to provide banking services to state-legal cannabis industry operators. This has made it difficult for cannabis businesses to obtain banking services and has led in many states to cannabis businesses having to deal with the threats associated with handling excessive amounts of cash. The SAFE Banking Act is intended to remedy the lack of access to normal business banking that is currently experienced by cannabis businesses operating in states with medical and adult use cannabis regulatory programs. The bill would prevent banking regulators from penalizing institutions that provide banking services to state-legal cannabis businesses, thus removing the regulatory risk that deters banks from servicing the cannabis industry,” said Randy Maslow, President of iAnthus Capital Holdings, Inc.
iAnthus Capital Holdings Inc (OTCMKTS:ITHUF), 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.”
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As noted above, ITHUF just announced its response to the passage of the Secure and Fair Enforcement Banking Act of 2019 by the House of Representatives.
The stock is sliding lower to test key support at the lows of its action over the two years. The move over recent days represents a clear acceleration of that dynamic as the larger cannabis space has spiraled to the downside following reports of a rapidly increasing incidence of cases of a mysterious lung disease related to vaping involved cannabis-derived substances.
“The historical passage of the SAFE Banking Act is a critical step in opening up banking services to the cannabis industry, which is required for the long-term health and safety of the cannabis industry. In addition to improving safety for industry employees and patients, the SAFE Act promotes transparency and regulatory compliance, thereby making the jobs of taxing authorities and regulators easier. The SAFE Act may also promote equity in the cannabis industry by creating better access to capital and reducing the artificially high banking costs that currently plague the industry, thereby permitting a wider-range of people to become part of the industry. We are hopeful that the strong bipartisan support in the House will bode well for the bill as it makes its way to the Senate.”
Now commanding a market cap of $236.6M, ITHUF has a significant war chest ($30.5M) of cash on the books, which compares with about $41.2M in total current liabilities. ITHUF is pulling in trailing 12-month revenues of $31.7M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 7411.4%. We will update the story again as soon as further details emerge. 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.