iAnthus Capital Holdings, a venture capital firm publicly traded on the Canadian Securities Exchange, has signed a letter of intent to acquire Citiva Medical, LLC, which holds one of New York’s 10 medical cannabis licenses. The transaction is worth $18 million in cash and iAnthus stock.
Previously, iAnthus had agreed to acquire Valley Agriceuticals, another New York licensed producer; however iAnthus CEO Hadley Ford said that deal has been terminated after the two companies “were unable to reach definitive legal agreements.”
“We continue to believe New York is a growth market,” Ford said in a press release. “Our investors expect us to find ways to create value in the high growth U.S. cannabis market.”
Citiva NY was granted a licensed by the state Department of Health to operate four New York City dispensaries – one each in Brooklyn, Staten Island, and Chemung and Dutchess counties – with a cultivation, extraction, and processing center in Orange County.
“We are excited to be partnering with iAnthus,” said Kim Volman, Citiva CEO. “Our team has spent decades meeting the pharmacy needs of patients in New York City. Combining our experience with the operational and capital markets expertise of iAnthus should allow us to scale quickly and execute on our mission to provide the highest quality, consistently-dosed and standardized cannabis medications to meet the specific needs of New York residents.”
The deal must be approved by the Canadian Securities Exchange and the New York Department of Health before it is finalized.