iAnthus Capital Holdings (OTCMKTS:ITHUF) Stock in Bearish Trend After Key Corporate Update

Shares of iAnthus Capital Holdings (OTCMKTS:ITHUF) continues to trend lower on Thursday, extending its weekly fall to 15%.

Market Reaction

On Thursday, ITHUF stock  fell 9.40% at $0.1812 with more than 328K shares, compared to its average volume of 522k shares. The stock has moved within a range of $0.1800 – 0.2000 after opening the trade at $0.1915.

Corporate Update

iAnthus Capital Holdings (OTCMKTS:ITHUF) has recently provided an update in regards to the company’s Annual General Meeting. As mentioned in the news release on June 16, 2021, the BC Registrar of Companies had permitted a further extension to hold iAnthus’ Annual General Meeting for the year 2020 from June 30, 2021 to October 31, 2021. Now that deadline has been extended by two more months till December 31, 2021.

There is an update about the recapitalization transaction as well. Two of the most important conditions for closing the recapitalization transaction are securityholder approval and Court approval – both requirements have been fulfilled. There are other closing conditions involved, as mentioned in the Restructuring Support Agreement dated July 10, 2020. Closing the recapitalization transaction is dependant upon those. There are some transactions that have to be approved by state-level regulators in certain U.S. states with jurisdiction over the licensed cannabis operations of entities owned, in whole or in part or controlled directly or indirectly, by iAnthus in such states.

By the end of October 2021, the Florida Department of Health had approved the variance request pursuant to section 381.986(8)(e) of the Florida Statutes by the Company’s subsidiary, McCrory’s Sunny Hill Nursery. This approval is for the change of ownership transactions contemplated by the recapitalization transaction. Regulatory approvals in Massachusetts, New York and Maryland are pending.

Traders Review

ITHUF stock is trading below the 200-Day and 20-Day Moving averages of $0.24 and $0.32 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.26. The stock is down 8% so far this year.

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