logo-loader

iAnthus Capital set to expand into five US states with US$18mln Citiva deal

Last updated: 15:40 14 Aug 2017 EDT, First published: 04:45 14 Aug 2017 EDT

cannabis
iAnthus Capital Holdings Inc is focused on cannabis and cannabis related products

iAnthus Capital Holdings Inc (CSE:IAN, OTCQB:ITHUF) is set to expand its operations into five US states as it announced the acquisition of Citiva Medical LLC and CITIVA USA in an US$18mln deal.

The group also announced today it was terminating its previously announced term sheet for the US$17.3mln acquisition of Valley Agriceuticals, after it was unable to reach definitive legal agreement.

Citiva Medical holds one of the 10 medical marijuana licences in New York State, while Citiva LLC owns regulated cannabis industry assets and intellectual property (IP).

Hadley Ford, the chief executive of iAnthus said following the signing of the letter of intent (LOI): "Our investors expect us to find ways to create value in the high growth US cannabis market.

Ford went on: "Kim Volman, the chief executive officer of Citiva NY and Citiva USA, is a highly successful New York City entrepreneur who founded a medical business with over $50 million in annual revenues that includes a long-term care pharmacy, retail pharmacies, and a compounding pharmacy focused on pain management, with four locations in and around New York City.

"In addition, Citiva NY's dispensary locations in Brooklyn and Staten Island will provide immediate access to more than 10 million people in the New York City metropolitan area.

"We will be able to leverage that access with a management team that has developed relationships with more than 800 physicians and a proven track record of delivering specialized prescription medication to patients. We believe this will be a winning combination."

Notably, Citiva is also planning to develop a proposed cultivation, extraction and product development center in Orange County, New York and is in the final stages of securing leaseholds for its four dispensary locations.

The New York medical marijuana program began accepting patients in December 2015 and currently has 26,561 registered patients, and it has been expanded in the last four months to increase the accessibility of medical marijuana to patients through the addition of chronic pain as a qualifying condition and publishing the names of qualifying practitioners to make it easier for patients to find doctors.

Shares in Toronto notched up 1.01% to C$3 each.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

4 hours, 54 minutes ago