Ianthus closes acquisition of MPX Bioceutical
On February 5, iAnthus Capital Holdings (ITHUF) announced that it completed the acquisition of the MPX Bioceutical. The combined entity of iAnthus and MPX Bioceutical will operate in 11 states with a permit to operate 63 retail locations and 15 processing facilities.
According to the previously announced plan, MPX shareholders received 0.1673 common shares of iAnthus for each MPX share held. The number represents a premium of 30.6% over the closing price of iAnthus and MPX shares on October 17. MPX shareholders received common shares of the newly formed MPX International, which got listed on the Canadian Stock Exchange on February 5.
Hadley Ford, the CEO of iAnthus, said, “2019 will be a transformative year for iAnthus, with the closing of our business combination with MPX being a crucial step forward. As the U.S. cannabis market continues to expand with increasing consumer and regulatory acceptance, iAnthus will continue to execute and provide the quality products and brands that our customers demand. As demonstrated with our 2018 acquisitions in Florida and New York, and now with the closing of our MPX transaction, the iAnthus team continues to demonstrate its focus on growing its platform and operations.”
iAnthus rose 5.6% and closed at $5.64 for the week ending February 8. The gains helped the stock to trade 13.0% above its 100-day moving average price of $4.99. On a year-to-date basis, the stock has gained 41.3%. However, investors should be cautious because the company’s 14-day relative strength index is at 72, which indicates that the stock has moved into an overbought situation.
iAnthus outperformed the Horizons Marijuana Life Sciences Index ETF (HMLSF), which declined ~4.1% for the week ending February 8. The fund also provides exposure to Canopy Growth (CGC), Aphria (APHA), and Tilray (TLRY) with weights of 12.4%, 8.1%, and 7.7%, respectively.