Multi-state cannabis operator iAnthus announced that it has closed $ 11 million in financing to complete the expansion and improvement of a cultivation and processing facility in New Jersey.
The facility is the subject of a lawsuit between MPX New Jersey and iAnthus, who issued a statement saying it received permission from a New Jersey court on Wednesday to proceed with construction.
“The court recognized iAnthus’ significant interest in completing the construction of the cultivation facility, particularly given the company’s contractual rights to acquire full ownership of MPX NJ, subject to regulatory approval,” iAnthus said in the statement.
The Monmouth County’s written order was brief, denying MPX’s motion for an injunction to suspend construction.
However, the mandate also stipulated that an area of the facility where cannabis is grown remain under MPX control and only accessible by iAnthus under MPX supervision.
New York-based iAnthus is trying to position itself in New Jersey for both an expanding New Jersey medical cannabis market and a recreational marijuana market that was voted for by voters in November.
The $ 11 million loan bears interest at 14% per annum, according to a press release from iAnthus. The bonds mature in February 2023.
The loan is backed by all of the company’s marijuana assets in New Jersey, including a medical cannabis dispensary in Atlantic City.
The interest rate would drop to 8% annually upon completion of iAnthus’ financial restructuring plan, which was approved in a Canadian court late last year.
The company, listed on the Canadian Stock Exchange as the IAN, expects the expanded New Jersey cultivation and processing facility to be sublet to MPX New Jersey upon completion.
It also said it had filed with state regulators to open two satellite marijuana dispensaries.
– Jeff Smith