Today, iAnthus Capital Holdings, Inc. (CSE: IAN) and MPX Bioceutical Corporation (CSE: MPX) announced today according to a press release that they had signed an acquisition agreement in which the former would acquire the later.
The contract would be facilitated by an all-stock transaction with offered equity to MPX shareholders estimated at USD 640 million. The contract signifies the first public to public merger transaction in the U.S. cannabis markets history, along with the second mega-acquisition to take place in the past week alone.
The combined corporate entity, besides international businesses of MPX, will own operations along with cannabis licenses in 10 states while also permitting iAnthus to use 56 retail distributors and 14 production and cultivation facilities. In total, iAnthus will be acquiring retail and production capabilities in Maryland, Nevada, California, Arizona, and Massachusetts. These licenses supplement their existing assets in Vermont, Colorado, New Mexico, Florida, and New York creating a strong market presence along both the western and eastern United States.
Estimated revenues in yearly cannabis sales are figured at USD 16.2 billion by 2022, according to some analysts.
“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 Hadley Ford, iAnthus’s CEO. “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.”
These acquisitions are a reflection of a ramp up in merger and acquisitions in the cannabis industry that has the potential to conglomerate the market into several major players within the coming years. Many executives feel that a “land-grab” phase is inevitable, with many management teams operating on the principle that it’s better to act first then to be left behind.
“The nascent U.S. cannabis market is still in a land-grab phase, and we feel that our footprint when combined with iAnthus, provides our investors with the strongest possible exposure to this explosive marketplace,” said MPX CEO Scott Boyes.
MPX shareholders would receive common shares of MPX International, a soon to be created holding company for the firm’s non-U.S. operations and will apply to be listed on the Canadian Securities Exchange. MPX shareholders receive 0.1673 shares of iAnthus for every single for of MPX they own, corresponding to around CA $1.28 per share.
iAnthus Capital Holdings Inc. Company Profile
iAnthus Capital Holdings, Inc. owns and operates best-in-class licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry.
Founded by entrepreneurs with decades of experience in operations, investment banking, corporate finance, law and health care services, iAnthus provides a unique combination of capital and hands-on operating and management expertise. The Company uses these skills to support operations across six states. –iAnthus
MPX Bioceutical Corp Company Profile
MPX, through its wholly-owned subsidiaries in the U.S., provides substantial management, staffing, procurement, advisory, financial, real estate rental, logistics and administrative services to three medicinal cannabis enterprises in Arizona operating under the Health for Life (dispensaries) and the award-winning Melting Point Extracts (high-margin concentrates wholesale) brands.
The successful Health for Life brand operates in the rapidly growing Phoenix Metropolitan Statistical Area. With the acquisition of The Holistic Center, MPX added another operating medical cannabis enterprise to its footprint in Arizona. – MPX Bioceutical