SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of iAnthus Capital Holdings, Inc. (OTC: ITHUF) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between May 14, 2018 and April 6, 2020. iAnthus owns and operates licensed cannabis cultivation, processing, and dispensary facilities in the United States.
If you suffered a loss as a result of iAnthus' misconduct, click here.
iAnthus Capital Holdings, Inc. (ITHUF) Accused of Misleading Shareholders
According to the complaint, in May 2018, iAnthus entered into a $50 million 2018 Debenture Agreement with Gotham Green Partners ("GGP"), later amended to include an additional $20 million, which included the withholding and escrow of $5.722 million from the 2018 Debenture proceeds to pay one year's interest on the 2018 Debentures in the event of an iAnthus default. After securing this $50 million in financing, iAnthus issued a series of announcements that gave positive representations of its business prospects, including its additional debt and equity offerings to fund the Company's planned expansion. However, when it came time to pay its March 31, 2020 interest payment to GGP, iAnthus was either unwilling or unable due to unavailability of its escrowed funds to make the payment, and on April 6, 2020, iAnthus issued a press release announcing that it did not make the applicable interest payments due on certain secured and unsecured debentures. On this news, iAnthus' stock price fell nearly 62% to close at just under $0.18 per share.
If you purchased iAnthus Capital Holdings, Inc. (ITHUF) securities between May 14, 2018 and April 6, 2020, you have until June 15, 2020, to ask the court to be appointed lead plaintiff for the class.
Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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