Holliston marijuana parent company completes $835M merger with Toronto firm
Google
The building in which Mayflower Medicinals grows medical marijuana.
The New York City-based iAnthus Capital Holdings, the parent company of a Holliston-based marijuana grower Mayflower Medicinals, has merged with Toronto cannabis firm MPX Bioceutical Corp.
According to the companies, the agreement represents the first public-to-public merger in the U.S. cannabis industry.
According to the agreement, iAnthus will combine with MPX in an all-stock transaction with offered equity consideration to MPX share valued at $835 million. MPX shareholders will be entitled to receive 0.1673 common shares of iAnthus for each common share of MPX held, a consideration of about $1.28 per MPX common share at a premium of 30.6 percent.
Simultaneous to the merger is the creation of MPX International, which will apply to list on the Canadian Securities Exchange. Each MPX shareholder will receive common shares of the newly formed MPX International, according to the press release.
The transaction was announced Thursday, the day after cannabis became legal for adult-use sales in Canada.
Upon completion of the transaction, the board of directors of the combined company will be increased to seven, with three directors being nominated by MPX.
Both companies do business in Massachusetts. Mayflower Medicinals operates out of a 36,000-square-foot cultivation site in Holliston. The company operates a dispensary in Boston and is planning two other dispensaries in the state. MPX is currently building a 40,000-square-foot cultivation facility in Fall River, where it also plans to locate a dispensary.
In a statement, iAnthus CEO Hadley Ford called the merger a watershed moment for the company, as it is nearly doubling the size of its national footprint on the East Coast while expanding westward to locations in California, Nevada and Arizona.
“Since its inception, iAnthus has been strategically focused on building scale, and this announcement crystallizes our positioning as one of the largest multi-state operators in North America,” she said.
Combined, the companies now operate in a total of 10 U.S. states, including Massachusetts, New York, Florida, Vermont, New Mexico, Colorado, Nevada, Arizona, California and Maryland.
According to a press release from the companies, cannabis sales from those states are projected to equal $16.2 billion by 2022.
WBJ Web Partners
Most Recent
Most Recent
0 Comments