NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors that purchased iAnthus Capital Holdings, Inc. (Other OTC: ITHUF) common stock between May 14, 2018 and April 6, 2020 (the “Class Period”). Investors have until June 15, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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In May of 2018, iAnthus entered into the $50 million 2018 Debenture Agreement with Gotham Green Partners (“GGP”). Among other things, that agreement provided for the withholding and escrow of $5,722,222.22 from the 2018 Debenture proceeds to pay one year’s interest on the 2018 Debentures in the event of iAnthus’ inability to make its interest payments under the agreement.
Then, on September 30, 2019, iAnthus and GGP entered into the Amended Debenture Agreement, which provided an additional $20 million to the Company. The Amended Debenture Agreement included the provision from the 2018 Debenture Agreement that provided for the withholding and escrow of $5,722,222.22 to pay one year’s interest under the Amended Debenture Agreement in the event that iAnthus was unable to make the required interest payments.
Although iAnthus never disclosed that the $5.72 million in escrowed funds was not available to fund iAnthus’ interest payments, on April 6, 2020, iAnthus announced that it had defaulted on $4.4 million in interest payments to GGP under the Amended Debenture Agreement on March 31, 2020.
On this news, shares of iAnthus fell over 61%, closing at $0.179 per share on April 6, 2020.
The complaint, filed on April 15, 2020, alleges that throughout the Class Period defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s ability to pay its interest obligations under various debenture agreements. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
If you purchased iAnthus common stock during the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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