iAnthus thought Gotham Green Partners was providing a financial lifeline, but the investment firm is now poised to seize control of the company.
In the heady days of the green rush, iAnthus emerged as one of the most ambitious U.S. companies seeking to cash in on the booming legal marijuana industry.
By June 2018, the company had operations in six U.S. states, including potentially massive markets in Florida and New York, and wanted to become a national player.
But it had a problem: lack of cash.
iAnthus had few traditional options to bankroll its expansion because marijuana remains illegal under U.S. federal law. To go big, iAnthus’ then-CEO, Hadley Ford, reached out to someone he considered a friend: Jason Adler, founder of Gotham Green Partners, which had emerged as one of the biggest lenders in the cannabis industry.
Gotham Green ultimately agreed to loan iAnthus up to $140 million, but the lender was not obligated to provide the full amount.
While it appeared to be a financial lifeline at the time, the series of deals could ultimately prove catastrophic for iAnthus shareholders, potentially wiping out hundreds of millions of dollars from investors and giving Gotham Green ownership, according to investors and court documents.
“They basically brought us out into the middle of the ocean and then drowned us,” said Beth Stavola, former chief strategy officer of iAnthus, which is a cannabis cultivation, processing and retail company with operations in nearly a dozen states. [Read More @ Politico]
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