iAnthus Capital Holdings (CSE:IAN; OTCQB:ITHUF) announced it acquired, through merger and acquisition transactions, all of the assets of GrowHealthy Holdings and some related subsidiaries.
As quoted in the press release:
GrowHealthy and its affiliate, McCrory’s Sunny Hill Nursery, LLC (“McCrory’s”) comprise one of just thirteen (13) current Florida Medical Marijuana Treatment Centers (“MMTCs”) licensed to provide medical cannabis under Florida’s medical marijuana law. The Acquisition includes GHIAA Management, Inc., a wholly-owned subsidiary of GrowHealthy that holds an exclusive 40-year management contract to operate the medical cannabis business associated with the MMTC license issued to McCrory’s (the “License”), together with an option to acquire 100% of McCrory’s for a nominal consideration, pending approval of the Florida Department of Health.
The total consideration paid for the Acquisition was US$17,500,000 in cash and US$30,500,000 was satisfied in iAnthus common shares at a price per share of US$2.52.(1) The cash portion of the consideration for the Acquisition includes the purchase by the Company of the rights to a US$5,000,000 performance bond posted with the state in connection with the issuance of the License. Contemporaneously with the closing of the Acquisition, the Company’s 2,925,003 preferred shares in GrowHealthy were redeemed in return for US$3,000,000 paid to the Company at closing.