iAnthus restructures deal with lenders to effectively hand over company to them
U.S. cannabis operator iAnthus Capital Holdings said Monday that it entered into an agreement with its lenders for a "proposed recapitalization transaction" that would effectively hand over the company to its debt-holders. iAnthus, which once had a market valuation of $1.2 billion but was recently slapped with a "cease-trade order" by regulators said under terms of the deal that both its secured and unsecured debt-holders will own about 48.6 per cent of the company, with shareholders owning the remaining 2.75 per cent. If iAnthus was to pursue creditor protection under CCAA, existing shareholders will be left with no equity in the company, the firm said. If the deal is approved, iAnthus will see its debt reduced by about US$68 million while it will also obtain about US$14 million in interim financing.
Petition launched to end Ontario government monopoly on online cannabis sales, delivery
A new petition calling for Ontario to end its monopoly on providing cannabis delivery services was launched over the weekend, drawing hundreds of signatures. Last week, the Ontario government confirmed that it would stop allowing privately-run cannabis stores in the province to provide delivery or curbside pickup services following an emergency order that allowed them to serve customers at the onset of the COVID-19 pandemic. The petition calls on the Ontario government to change its existing legislation, remove the Ontario Cannabis Store's monopoly and allow private, legal retailers to offer online sales and delivery. A representative from the OCS wasn't immediately available for comment.
Canopy Growth lays off another 30 from Smiths Falls, Ont. headquarters
Canopy Growth is laying off another 30 employees from its Smiths Falls, Ont. headquarters, according to Inside Ottawa Valley. The news site said the layoffs are part of its ongoing internal strategic review, which has already resulted in the departure of more than 800 members of its workforce across the country. A total of 74 people have been laid off from Canopy's headquarters in the Ontario town, the website added.
Deal for Civilized to be taken over by cannabis data provider fails after term sheet expires: Report
A takeover deal that would have seen New Brunswick-based cannabis media startup Civilized be acquired by industry data provider New Frontier Data has collapsed, according to Business Insider. The deal to acquire Civilized was "dead" in March after the term sheet to acquire the media startup expired, according to the news site. Civilized received an investment from comedian Chelsea Handler in 2019 and regularly held industry events across the U.S. and Canada ahead of cannabis being legalized in Canada. However, the company suffered from a lack of digital advertising and a lack of funding, Business Insider reports. The company is set for a relaunch after renegotiating its debt with lender Canopy Rivers, the website added.
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