Cannabis Producer Ianthus Capital Explores Options For A Potential Sale Following Rough Year

Cannabis company iAnthus Capital Holdings Inc. ITHUF is evaluating a potential sale with a consultant, according to sources familiar with the matter, reported Bloomberg.
The company received takeover interest from peers and consideration is in progress. It is important to note, that nothing is confirmed and that iAnthus may reject the offer.

Rough Year

This year was a tough one for the New York-headquartered company, with revenue declines of 20% year-over-year for the second quarter and third quarter and 17% in the first quarter. While the third quarter's net loss of $22 million was higher than $15.8 million in the third quarter of 2021, it was still a great reduction from a net loss of $373.6 million in the second quarter of 2022. Year-to-date, iAnthus shares have fallen 65% from $0.114 at closing on January 3 to $0.0391 at closing on December 19.

This compares to SPDR S&P 500 ETF Trust SPY shares falling 20% from $477.71 to $380.02, and AdvisorShares Pure Cannabis ETF YOLO shares declining 70%, from $13.21 to $3.87 in the same period.

Cannabis producer Ianthus Capital Holdings is working with an adviser to explore a potential sale, sources say https://t.co/BYrV0GMSom

— Bloomberg Markets (@markets) December 17, 2022

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