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Cannabis Summary for Oct. 13, 2021

2021-10-13 20:20 ET - Market Summary

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by Stockwatch Business Reporter

The S&P/TSX Cannabis Index added a fraction to 129.73, while the CSE Composite Index lost 7.09 to 615.29. One of the day's worst performers was U.S. MSO (multistate operator) iAnthus Holdings Inc. (IAN), which tumbled 19 cents to 28 cents on 1.26 million shares, after losing a court battle with its creditors over a contentious recapitalization. The judge ruled that the creditors can extend the recapitalization deadline despite iAnthus's disapproval.

The case is a tale of close relations gone sour. The debt-plagued iAnthus defaulted on about $174-million (U.S.) of debt in March, 2020, and soon afterward agreed to a recapitalization that would put over 97 per cent of its equity in the hands of its creditors. The original goal was to complete the deal by June 30, 2021. As this date approached and the parties had yet to secure all state-by-state regulatory approvals, they agreed to extend the deadline to Aug. 31. Yet as this date approached, iAnthus was in stronger financial shape and markets were more favourable, giving rise to the possibility of better offers. iAnthus denied the creditors' demand to further extend the deadline, prompting the creditors to haul it to court.

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