The first public company to public company merger in U.S. cannabis industry history will be the combination of iAnthis Capital Holdings, Inc. and MPX Bioceutical Corporation.
The two companies announced the signing of an arrangement agreement in which iAnthus will combine with MPX in an all-stock deal valued at $835 million Canadian ($640 million U.S.)
Hadley Ford, CEO of iAnthus, and Beth Stavola, chief operations officer of MPX, are participating in NJ Cannabis Media’s NJ Cannabis Summit: “Growing a Sustainable Industry in the Garden State,” Oct. 24 at Forsgate Country Club in Monroe, N.J.
The combined company, excluding MPX International, will have operations and cannabis licenses in 10 states that will permit iAnthus to operate 56 retail locations and 14 cultivation/processing facilities. iAnthus will add retail and/or production capabilities in Arizona, Maryland, Nevada, California and Massachusetts in addition to existing assets in New York, Florida, Massachusetts, Vermont, Colorado, and New Mexico.
The 10 states combined are projected to generate approximately $16.2 billion in yearly cannabis sales by 2022, according to Arcview Market Research and BDS Analytics.
“This is a watershed moment for iAnthus, as we nearly double the size of our national footprint in the United States. iAnthus will be uniquely positioned for success on the U.S. East Coast, while solidifying our cultivation and retail presence with the additions of California, Nevada, Maryland and Arizona,” said Ford. “Since its inception, iAnthus has been strategically focused on building scale, and this announcement crystallizes our positioning as one of the largest multi-state operators in North America.
“The U.S. cannabis market depends on three key factors for success: scale, access to capital and great people to make it all work,” said Ford. “This acquisition improves our position in all three. We are especially thrilled to have Beth Stavola, an early pioneer and visionary in the industry, join our board and senior leadership.”
“The ability for the combined company to sell products across 10 states with an addressable market of 112 million people, combined with the shared management philosophy of driving best practices across all our operations, was key to my excitement about joining forces,” said Stavola, who will become chief strategy officer and director of the resulting company. “The opportunity in front of us is enormous.”
The agreement provides that MPX shareholders will be entitled to receive 0.1673 common shares of iAnthus for each common share of MPX held, representing a consideration of approximately $1.28 per MPX common share, a premium of 30.6% based on the closing price of iAnthus and MPX common shares on Oct. 17, 2018. In addition, each MPX shareholder will receive common shares of the newly formed MPX International which will hold all of the non-U.S. businesses of MPX. MPX International will apply to list on the Canadian Securities Exchange with the listing to occur contemporaneously with closing of the transaction. All references to currency are in Canadian dollars.