iAnthus Bolsters Portfolio with Strategic Arizona Asset Sale to Sonoran Roots

iAnthus Capital Holdings, Inc. (CSE: IAN, OTCQB: ITHUF), a leading U.S.-based cannabis operator, has announced a strategic transaction to sell select Arizona assets to Sonoran Roots, a leading Arizona cannabis operator. The sale, valued at approximately $36.5 million, includes three dispensaries and two processing/cultivation facilities, allowing iAnthus to redirect resources to its growth initiatives in key markets while maintaining a retail presence in Arizona.

Streamlining Operations and Focusing on Key Markets

The Transaction enables iAnthus to simplify its operations and focus on markets with the greatest growth potential, such as Florida, Maryland, New Jersey, Massachusetts, and New York. By maintaining only one dispensary in Mesa, Arizona, iAnthus can optimize its remaining operations and enhance profitability. This strategic move aligns with iAnthus' commitment to operational excellence and unmatched customer loyalty.



Strengthening the Balance Sheet and Reducing Debt

The Transaction provides iAnthus with significant capital, consisting of approximately $20 million in cash and a $16.5 million secured promissory note. These proceeds will be used for working capital, general corporate purposes, and the repayment of a portion of the Company's various secured debt obligations. This influx of capital will help strengthen iAnthus' balance sheet and reduce its debt, ultimately supporting its long-term growth and profitability.

Enhancing Sonoran Roots' Market Position and Geographical Coverage

The acquisition of select iAnthus Arizona assets by Sonoran Roots is a transformational step for the company in Arizona. This transaction is highly accretive and strategically enhances Sonoran Roots' market position by increasing its Ponderosa Dispensary footprint to seven retail locations with broad geographical coverage. The acquired assets include two dispensaries, a processing facility, and a cultivation/processing facility located in Mesa, Arizona, as well as one dispensary located in Phoenix, Arizona. These facilities have consistently delivered high-quality cannabis products and experiences to their surrounding communities, further strengthening Sonoran Roots' market presence and customer base.

In conclusion, the sale of these Arizona assets to Sonoran Roots supports iAnthus' long-term strategic goals by enabling the company to focus on key growth markets, achieve operational excellence, and strengthen its financial position. For Sonoran Roots, the acquisition enhances its market position and geographical coverage in Arizona, allowing it to better serve the Arizona market and expand its production capacity and processing capabilities.