The iAnthus Q3 financial results point to a bright future for the company. According to a news release, the company is moving forward on many fronts, including the expansion of operations. Further, the company reports an expanded asset base as well as a bullish outlook.
iAnthus Capital Holdings, Inc. is a major player in the nascent cannabis market. The company has various cannabis operations which it owns or operates. Further, iAnthus partners with other industry players to deliver products and services for the burgeoning pot market.
In the latest developments, iAnthus releases Q3 financial results which paint a rather rosy picture of the period. The results are both for the company’s finances and operations.
According to a statement from the CEO, the company is maintaining a prudent balance sheet. Further, the CEO, Hadley Ford, said that the company has a larger footprint. In particular, the company signed an agreement with MPX Bioceutical Corporation to form MPX International.
Interestingly, the agreement is the first “public company to public company merger” in the US cannabis industry history. Particularly, the resulting MPX International will combine iAnthus with MPX. Further, the deal is entirely all-stock with a gross value US $640 million.
According to the news release, MPX International will operate in 10 US states. As a result, the move will permit iAnthus to operate 56 retail locations and 14 cultivation/processing facilities.
According to Arcview Market Research and BDS Analytics, the projected combined revenue from the 10 states is approximately $16.2 billion. This value represents the projected yearly cannabis sales by 2022.
Besides retail and/or production capabilities in the current six states, iAnthus will add capabilities in five more states. These are Arizona, Maryland, Nevada, California and Massachusetts.
Commenting on the agreement with MPX, Ford asserts that the moment marks a fundamental shift in its business operations.
“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.
Particularly, the company’s assets rose from $45.8 million at December 31, 2017 to $137.3 million at September 30, 2018. Interestingly, the sharp increase in the assets is as a result of acquisitions in Florida and New York. In addition, the continued build out of cultivation facilities is a factor in the increased assets.
Further, the company experienced a 101% growth in consolidated revenue in the three months ended September 30, 2018. The company also closed bought deal in October this year.
However, the company reported a net loss of $10 million for the third quarter. In essence, this brings the current balance sheet to $24.3 million.
Interestingly, the great run by iAnthus is down to the impressive performance of pot stocks generally. According to the CryptoCoin reporter, several American states allowed use of cannabis, leading to a spike in demand.
“The cannabis market has been growing exponentially. Several American states passed laws that permit the medicinal or recreational use of cannabis,” the publication notes.