Debra Borchardt
iAnthus Capital Holdings, Inc. (CSE: IAN, OTCQX: ITHUF) reported its fiscal fourth quarter and full year unaudited results for 2018, however, the company did not release any financial statement to accompany the press release.
Fourth Quarter
The company delivered fourth-quarter revenue of $2.2 million (an increase of 165% over the same time period for 2017), pro forma revenue* for the fourth quarter was $14.8 million and the adjusted EBITDA loss for the fourth quarter was $6.0 million. The fourth quarter net loss was approximately $15.9 million, which includes $9.9 million of non-cash charges used to derive adjusted EBITDA primarily due to accretion expense, fair market value adjustments, depreciation, and share-based compensation.
Full Year
iAnthus reported full-year fiscal 2018 revenue and other income of $4.5 million (an increase of 88% over 2017) and a pro forma revenue* of $49.3 million for the full year fiscal 2018. The full year fiscal 2018 net loss of approximately $62.0 million included $44.1 million of non-cash charges used to derive adjusted EBITDA primarily due to accretion expense, fair market value adjustments, depreciation, and share-based compensation. Adjusted EBITDA loss was $17.9 million for the full year fiscal 2018.
Pro forma revenue (which includes acquired MPX entities and managed revenue for Colorado and New Mexico operations*) for the fourth quarter was $14.8 million and $49.3 million for the full year fiscal 2018.
Management Comments
“We made significant investments in expanding our footprint and scaling our operations while maintaining a prudent balance sheet in the process. We opened eight dispensaries in the past seven months, including flagship stores in West Palm Beach, FL, and Brooklyn, NY, and plan to nearly double the pace of openings throughout the remainder of 2019.,” said CEO Hadley Ford. “We are now revenue generating in nine of eleven states and ramping quickly. Managing growth is challenging, particularly in an emerging industry. Fortunately, we have also built an impressive operating team that combines cannabis expertise with crucial professional skillsets from outside the industry.”
Looking Ahead
iAnthus announced last week that its U.S. subsidiary has entered into a letter of intent to acquire CBD For Life, a top-ranked, national CBD brand in the U.S. This transaction is expected to close in the second quarter of 2019. CBD for Life products are currently distributed in over 750 retail outlets and channels across the U.S. The Company will continue to sell products through its own licensed facilities, as well as actively target other dispensaries within the market.
The company said it expects that sales will launch in California in the next 60 days, which will be the 10th state for revenue generation.
iAnthus also said it believes that the Massachusetts market will be one of the highest growth markets within the US, and it is iAnthus’ full intention to become a significant wholesaler within the state.
