This morning, New Cannabis Ventures received anonymously an audio recording of a conversation between former CEO Hadley Ford of iAnthus (CSE: IAN) (OTC: ITHUF) and an investor. We were able to confirm with the investor, who was aware that it had been leaked, that the recording is legitimate, though he claimed to have no involvement in sharing the information and had no intention for it to become public. The conversation, which took place in early October, conveys Ford’s perspective of the events leading to a plan of arrangement that will leave current shareholders with just 2.75% of the company. An appeal of the recapitalization transaction will be heard tomorrow at the Supreme Court of British Columbia.
Ford discussed the history of his relationship with Gotham Green Partners, an investor in the company, dating to 2017, as well as the legal dispute that arose with Oasis Investments II Master Fund Ltd. According to Ford, the company had always had a strong relationship with Gotham, with weekly meetings taking place that usually included Gotham’s Jason Adler. Gotham had first invested in the company in 2018.
Oasis loaned money to iAnthus in 2019. Ford alleged that in June, afterwards, principal Alex Shoghi accused the company of violating debt covenants, something that Ford believes was contrived in order to get better terms, including renegotiating $6 options lower to market prices, which were much lower.