iAnthus capital steps in for a state-of-the-art cannabis cultivation and processing facility in Massachusetts
iAnthus Capital Holdings, Inc. (“iAnthus” or “the Company”), (CSE: IAN), a provider of capital investment and management services to licensed cannabis cultivators, processors and dispensaries throughout the United States, announced that construction is well underway on a state-of-the-art cannabis cultivation and processing facility in Holliston, Massachusetts. This benefits Mayflower Medicinals, Inc. (“Mayflower”), a Massachusetts non-profit Registered Marijuana Dispensary (“RMD”) that is the holder of a grow license from State of Massachusetts plus a processing license and three dispensary licenses to form a vertically integrated system.
Mayflower holds two provisional licenses to operate Registered Marijuana Dispensaries in Massachusetts, and has received approvals to operate its cultivation center in Holliston, MA. Mayflower is affiliated with iAnthus Capital Management, LLC and two directors of iAnthus sit as members of the Mayflower Board of Directors.
The 36,000 square foot production facility is expected to produce 8,700 pounds per annum and will cost approximately US$6.0 million, which amount is fully funded.
Based on current average sales prices, the production volume can support in excess of US$35 million in annual revenues. The space is located within an existing warehouse building and the initial interior demolition to prepare for tenant improvements and installation of cultivation and processing equipment is complete.
Cultivation is expected to begin during the second quarter of 2017 with first harvest expected in the third quarter of 2017 and sales in the fourth quarter in 2017. The facility is within a modular industrial complex, which offers future opportunities for expanding capacity beyond the initial 36,000 square feet.
To date, iAnthus has invested US$3.0 million in support of Mayflower’s operations and an incremental US$7.5 million is earmarked for the completion of the entire build out of the cultivation and processing facility and three dispensaries. The incremental amount of required capital will be funded from iAnthus’ current cash position.
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It is anticipated that a newly-formed entity that is 79% owned by iAnthus will enter into a definitive agreement with Mayflower to provide financing, real estate and equipment leasing, intellectual property licensing, and certain management services in support of Mayflower’s mission to provide medical marijuana to qualified patients in Massachusetts.
The dispensaries are expected to open for business during the fourth quarter of 2017 under the operational direction of Jaime Lewis, a prominent medical marijuana senior manager with over a decade of cannabis cultivation, production, and dispensary operations experience across the United States. Mayflower has a pending application with the Commonwealth of Massachusetts for a third dispensary license.
iAnthus Capital Holdings, Inc., through its 100% owned subsidiary, iAnthus Capital Management, LLC, delivers a comprehensive solution for financing and managing licensed cannabis cultivators, processors and dispensaries throughout the United States. Founded by entrepreneurs with decades of experience in investment banking, corporate finance, law and healthcare services, iAnthus provides a unique combination of capital and hands-on operating and management expertise. The Company harnesses these skills to support a diversified portfolio of cannabis industry investments for our shareholders.
Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>