IANTHUS DEADLINE ALERT: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In iAnthus Capital Holdings, Inc. To Contact The Firm

NEW YORK, NY / ACCESSWIRE / May 6, 2020 / Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in iAnthus Capital Holdings, Inc. ("iAnthus" or the "Company") (OTCQX:ITHUF) of the June 19, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in iAnthus stock or options between May 14, 2018 and April 6, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/ITHUF. There is no cost or obligation to you.

You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.

CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330

The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased iAnthus securities between May 14, 2018 and April 6, 2020 (the "Class Period"). The case, Finch v. iAnthus Capital Holdings, Inc. et al., No. 20-cv-03135 was filed on April 20, 2020, and has been assigned to Lewis A. Kaplan.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements and omitting materially adverse facts about the Company's ability to pay its interest obligations under various debenture agreements. As a result of defendants' alleged false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.

Specifically, in May 2018, the Company entered into the $50 million 2018 Debenture Agreement with Gotham Green Partners ("GGP"). Among other things, that agreement provided for the withholding and escrow of $5,722,222.22 from the 2018 Debenture proceeds to pay one year's interest on the 2018 Debentures in the event of iAnthus' inability to make its interest payments under the agreement.

Then, on September 30, 2019, iAnthus and GGP entered into the Amended Debenture Agreement, which provided an additional $20 million to the Company. The Amended Debenture Agreement included the provision from the 2018 Debenture Agreement that provided for the withholding and escrow of $5,722,222.22 to pay one year's interest under the Amended Debenture Agreement in the event that iAnthus was unable to make the required interest payments.

Although iAnthus never disclosed that the $5.72 million in escrowed funds was not available to fund iAnthus' interest payments, on April 6, 2020, iAnthus announced that it had defaulted on $4.4 million in interest payments to GGP under the Amended Debenture Agreement on March 31, 2020.

On this news, iAnthus's stock fell from a closing price of $0.4690 per share on April 3, 2020 to $0.1790 per share on April 6, 2020-a $0.29 or 61.83% drop.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding iAnthus's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

SOURCE: Faruqi & Faruqi, LLP

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