New York and Toronto-based iAnthus Capital Holdings (CSE: IAN) (OTCQB: ITHUF), which owns cannabis operations throughout the USA, released its management discussion for the third quarter of 2017.
Among the highlights, the company:
- now has seven investments in six states, addressing a market of 50 million people;
- has invested US$23.1 million this year, for a total of US$32.4 million to date,
- has closed a C$12.0 million public offering and C$4.5 million private placement;
- holds US$8.6 million in cash to finish buying Citiva (New York) and fund operations
- increased its revenues by US$1.3 million in the nine months ended September 30, versus previous year.
In a day that saw many cannabis stocks dip as investors took profits, iAnthus stock was up 1.4% on the news to $2.19.
New York highlights:
Its acquisition of Citiva will give iAnthus exposure to 20 million people. Citiva is one of only 10 license holders in New York and will have locations in Brooklyn, Staten Island, Dutchess County and Chemung County. The Brooklyn dispensary will be one of two competitors in a borough of 2.6 million people. Its Staten Island dispensary will be the only licensee in a borough of 500,000 people.
The New York market grew 237% year to date, to 36,187 certified patients. The state added post-traumatic stress disorder and chronic pain as qualifying conditions this year, prompting major patient growth.
The company’s total investment to date is US$11.6 in loans to Pilgrim Rock and Mayflower Medicinals. Mayflower expects to begin production in early Q1, with first revenue in Q2. Its Boston dispensary construction should be complete in Q1.
The state has strong medical patient growth, with 42,361 active patients, up 26% versus year ago. There are now 15 dispensaries in the state. Management estimates at least three of these have revenues over US$10-12 million.
Massachusetts is on track to allow recreational sales in 2018.
iAnthus purchased 6.1% equity in GrowHealthy Holdings in Q3 and is negotiating further partnership. Total investment to date is US$3.0 million in preferred stock and a fully drawn US$2.0 million loan.
Florida continues its strong growth, adding over 200 patients and two physicians per day. There are 54,251 registered patients and 1,233 qualified physicians now, representing ~178% and ~41% growth, respectively.
GrowHealthy made its first delivery on November 13, 2017. It secured a lease for a flagship dispensary in a high traffic area of West Palm Beach with ~70,000 cars per day;
The firm has over 200 pounds of flower on site ready for processing, and 1,300 grams of distillate ready for sale;
iAnthus is negotiating with Grassroots Vermont to convert its services contract into a controlling equity position in a for-profit entity. Total investment to date is a US$0.9 million loan.
Grassroots’ grew its patients by 77% over 3Q 2016. Year to date sales through 3Q 2017 were US$0.7 million, up 51% versus year ago. The average patient spent US$296.00.
The Colorado market is growing strongly, with year to date medical and recreational cannabis sales reaching US$1.23 billion through November 2017, up 4% from 2016.
iAnthus has invested $5.2 million to date to buy key subsidiaries of Organix. In Breckenridge, CO, Organix is one of four dispensaries, generating US$2.9 million in sales through Q3 2017, an approximate 29% share of the market. They serve roughly 4,500 recreational customers and patients per month. The average sale per recreational customer is US$49.60. The average sale per medical patient is US$59.60.
New Mexico Highlights:
iAnthus currently owns 24.9% of Reynold Greenleaf & Associates (RGA) and has invested US$2.3 million to date. RGA had US$5.8 million in sales year to date, up 85% over 2016.
In Q3 2017, over 6,000 unique patients per month made purchases. The average sale per patient was US$44.00.
Source: iAnthus press release