NEW YORK and TORONTO, Nov. 21, 2022 – iAnthus Capital Holdings, Inc. (“iAnthus” or the “Company”) (CSE: IAN) (OTCPK: ITHUF), which owns, operates and partners with regulated cannabis operations across the United States, announced in a news release dated June 24, 2022 that Michael Weisser (“Weisser”) commenced a petition in the Supreme Court of British Columbia against iAnthus and its board of directors on June 20, 2022 seeking, among other things, an order that the Company hold its 2020 annual general meeting (“AGM”) on or before June 30, 2022 (the “Petition”). As announced on June 24, 2022, the Company called its 2020, 2021 and 2022 AGMs1 for shareholders of record on July 5, 2022 to be held concurrently on August 11, 2022 rendering the Petition Moot. At the same time, iAnthus announced the completion of the previously announced recapitalization transaction (the “Recapitalization Transaction”) resulting in various changes to the corporate governance and capital structure of the Company all pursuant to the terms of a restructuring support agreement dated July 10, 2020, as amended June 15, 2021, between the Company, all of the holders (the “Secured Lenders”) of the 13% senior secured convertible debentures issued by the Company, and a majority of debentureholders (the “Consenting Unsecured Debentureholders”) of the 8% unsecured convertible debentures issued by the Company.
On November 14, 2022, Weisser filed an application (the “Application”) in the Petition proceeding seeking to add the Secured Lenders and Consenting Unsecured Debentureholders as respondents, and amend the Petition to ask that, among other things, the Recapitalization Transaction be set aside as well as the results of the 2020 AGM. Further, Weisser asks for the Petition to be amended to provide for interim relief. In particular, Weisser asks that pending a further AGM in respect of iAnthus’s 2019 fiscal year, the existing directors of the Company be replaced by an interim slate of directors that Weisser will nominate.
iAnthus is reviewing the Application and will be seeking that the Petition be dismissed as a collateral attack on the Order of Justice Gomery dated October 5, 2020 approving the Recapitalization Transaction and declaring as binding all of the releases set forth in Article 5 of the Amended and Restated Plan of Arrangement attached as Schedule “B” to that Order and filed on SEDAR on October 7, 2020.
iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the United States. For more information, visit www.iAnthus.com.