Site icon Warrior Trading News

MPX and iAnthus Close $1.6 Billion Merger

Major M&A’s in the cannabis market is becoming all the more common as one multi-billion dollar acquisition comes into effect today. MPX Bioceutical Corp (CSE: MPX) and iAnthus Capital Holdings (CSE: IAN) announced today that they had completed their previously announced merger. The arrangement, which saw iAnthus acquiring all shares of MPX, is one of the largest in the cannabis industry at a valuation of $1.6 billion.



The acquisition would see iAnthus’ existing operations grow in size from six to 11 states as the executive team plans to unveil new national and product brands across the new entity. MPX is known as one of the early pioneers in the licensed cannabis space in Maryland, Nevada, and Arizona.

2019 will be a transformative year for iAnthus, with the closing of our business combination with MPX being a crucial step forward. As the U.S. cannabis market continues to expand with increasing consumer and regulatory acceptance, iAnthus will continue to execute and provide the quality products and brands that our customers demand,” said iAnthus CEO Hadley Ford. “As demonstrated with our 2018 acquisitions in Florida and New York, and now with the closing of our MPX transaction, the iAnthus team continues to demonstrate its focus on growing its platform and operations.”

Additionally, just prior to the signing of the agreement, all of MPX’s management team resigned as they turned the reins over to iAnthus’ board of directors, which will expand to include seven members. Three of those will consist of new MPX nominees Robert Petch, Elizabeth Stavola, and Robert Galvin.

“We realize that as the cannabis market continues to grow, the need for strong national brands only increases. With our ambitions to be the leader in the U.S. cannabis market, that is our logical next step. Stay tuned, as we plan to unveil further details around this in the coming weeks,” added Ford. The agreement marks one of the largest cannabis mergers in history. Last year, Aurora Cannabis (TSE: ACB)(NYSE: ACB) announced a $2.2 billion purchase of MedReleaf in an all-stock transaction, which was the largest cannabis deal at the same. Most analysts expert that these mega-deals will continue to increase in frequency as the cannabis industry consolidates over 2019.

Shares of iAnthus surged as much as 10 percent in light of the announcement, before losing some of those gains and settling at a 2 percent increase.

iAnthus Capital Holdings 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 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

IMAGE CREDIT

Exit mobile version