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by Mike Caswell

iAnthus Capital Holdings Inc. is facing an action in the Supreme Court of British Columbia from a shareholder over a recapitalization plan that would essentially hand the company over to its lenders. The shareholder, Michael Weisser, claims that iAnthus has effectively ignored the interests of shareholders in trying to force the plan through. Among other things, the company has failed to hold an annual general meeting since 2019.

The allegations are contained in a petition filed on June 20, 2022, at the Vancouver courthouse. Mr. Weisser identifies himself as a shareholder who represents holders of more than 5 per cent of the company's shares. The respondents are iAnthus and its three directors, listed as Michael Muldowney, Diane Ellis and Robert Galvin.

The case arises from an agreement that iAnthus reached with its lenders in July, 2020, to relieve what it called a "liquidity crisis." It had issued $97.5-million in secured notes and another $60-million on an unsecured basis to several lenders, including entities controlled by Gotham Green Partners LLC of New York. (All figures are in U.S. dollars.) Facing repayment demands, iAnthus entered into a restructuring agreement that would essentially hand the company over to those lenders. Shareholders would own 2.75 per cent, with the remainder going to the lenders.

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