Sign up USA
Proactive Investors - Run By Investors For Investors

iAnthus Capital buys GrowHealthy, opening door on potential US$1bn medical cannabis market in Florida

With a population of 21mln people, the move represents a huge opportunity for iAnthus ...
iAnthus Capital buys GrowHealthy, opening door on potential US$1bn medical cannabis market in Florida
iAnthus hopes to ride the wave of an expanding market in Florida

iAnthus Capital Holdings Inc (CNSX:IAN) has completed its acquisition of GrowHealthy Holdings LLC - marking its full scale entry into Florida, a market which could grow to US$1bn by 2020.

With a population of 21mln people, the move represents a huge opportunity for iAnthus.

READ: iAnthus Capital expected to have 'banner' year in 2018, reckons Canaccord

"The state's population includes a large percentage of older adults who can derive significant benefits from medical cannabis, and the Florida program has witnessed a rapid rise in its registered patient base since passage of the law," said the group's president Randy Maslow.

"GrowHealthy, in particular, boasts a state-of-the-art, 200,000-square-foot cultivation and processing facility in Lake Wales, a flagship dispensary location in a densely populated area of Palm Beach county, and the opportunity to open up to 25 dispensaries in Florida currently and more in the future."

He added: "...we look forward to contributing iAnthus's capital and operational resources to fully build out GrowHealthy's infrastructure and capitalize on the enormous opportunity provided by Florida's medical cannabis market."

GrowHealthy delivered its first product in November last year and has an inventory of 55 strains.

READ: iAnthus Capital argues against turning the clock back 20 years on marijuana laws

Total consideration paid by IAnthus was US$17.5mln in cash and US$30.5mln was satisfied in iAnthus shares at US$2.52 each.

GrowHealthy and affiliate McCrory's Sunny Hill Nursery LLC is just one of 13 Florida medical marijuana treatment centres (MMTCs) at the moment licensed to provide medical cannabis.

The acquisition includes GrowHealthy subsidiary GHIAA Management Inc, which holds an exclusive 40-year management contract to operate the medical cannabis business associated with the MMTC licence and an option to acquire 100% McCrory's.

Construction at GrowHealthy's flagship Palm Beach county dispensary is expected to be finished during the second quarter this year and the 4,500-square-foot facility is expected to open in July.

Additional dispensary locations in Palm Beach county and elsewhere around the state have been identified and are the subject of lease negotiations, and dispensary openings in Tampa and Orlando are planned for the third and fourth quarter this year.

READ: iAnthus Capital poised to start growing at state-of-the-art Holliston facility in Massachusetts

GrowHealthy has already started sales through product delivery and will continue to expand its delivery capabilities throughout the year, said iAnthus.

Arcview Market Research reckons Florida's medical cannabis market will grow into a US$1bn market by 2020, having seen a 300% increase in the number of registered patient in the last six months alone.

iAnthus previously acquired around 6% of GrowHealthy in a preferred share purchase in October last year.

Shares shed 3.55% in Toronto to C$3.80 each.

View full IAN profile View Profile

iAnthus Timeline

Related Articles

cannabis plant
February 01 2018
Today, the group closed the US$18mln acquisition of Citiva Medical and Citiva USA
Internet TV specialsit Falcon Media House transformed and ready to start generating revenues
August 25 2017
It has gone from a cash shell to fully fledged online TV company plugged into a massive market in a year and half

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use