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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index gained 5.25 points to 124.86 Monday, while the Canadian Securities Exchange Composite Index gained 7.13 points to 274.40. Hadley Ford's United States-based iAnthus Capital Holdings Inc. (IAN) plummeted from 67 cents to 24 cents on 13.44 million shares. On the day iAnthus was supposed to release its 2019 results, it instead announced that it had defaulted on interest payments due March 31, 2020, for its debentures. The payments were for $4.4-million (U.S.). The company says it has been unable to raise money since its Dec. 20, 2019, financing. As of March 31, the principal amount of iAnthus's debt obligations is $159-million (U.S.), including $97-million (U.S.) of secured debentures and $60-million (U.S.) of unsecured debentures.
Mr. Ford, the long time CEO of iAnthus, said not paying was "a difficult decision" but that the company prioritized continuing to run the businesses' operations. In fact, Mr. Ford said iAnthus's "business has never been stronger." (Yes, he really said that. The market obviously disagreed with his assessment -- today's 24-cent close, which marks a new all-time low for the stock, is a long way from the company's 52-week high of $7.41.) Those who have followed iAnthus closely are undoubtedly familiar with Mr. Ford's ever-present optimism. Previously, in the midst of iAnthus's decline from $7.41 to under $1, he pleaded with investors to "take advantage of (iAnthus's) stock on sale" and called the drop in cannabis stocks an "irrational freefall."
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