iAnthus purchased 2,925,003 Class B Shares of GrowHealthy Holdings, LLC for a total purchase price of $3 million USD pursuant to a Class B Share Purchase Agreement. It's becoming more apparent that the Florida medical marijuana market is going to be a cash cow for the few lucky license holders. This most recent purchase represents an approximately 6.1% slice of the issued and outstanding equity shares of GrowHealthy.
GrowHealthy Holdings, LLC was originally formed in 2014 purely to apply for the needed license as a Dispensing Organization under Floridas medical marijuana program. Their affiliated partner McCrory's Sunny Hill Nursery, LLC was licensed as a Dispensing Organization by the Florida Department of Health on December 21, 2016, and then subsequently licensed on July 5, 2017 to cultivate, process, transport, and dispense "full-strength" medical cannabis.
GrowHealthy is expected to deliver to its first patients in November 2017, with the help of its almost 200,000 square foot cultivation and processing facility in Lake Wales, Florida. This facility was the largest cultivation facility in the state at its time of licensing.
GrowHealthy's affiliated company, McCrory's Sunny Hill Nursery, LLC, is one of the twelve current Florida Medical Marijuana Treatment Centers licensed to provide medical cannabis under Florida's medical marijuana law. This market is quite large in Florida for medicinal cannabis. Florida's population is over 20 million, and has 41,300 patients in their medical marijuana program currently.
When asked for comment, Randy Maslow, President of iAnthus said, "We continue to be impressed with the progress that the GrowHealthy team has made in its cultivation and processing buildout and in preparing to begin retail operations in the Florida market." Followed with, "As we continue our discussions about a further strategic relationship, we wanted to ensure that the company has sufficient capital to execute its business plan."
Along with the Preferred Share Purchase, iAnthus also announced that they issued a $3.0 million USD unsecured one-year note to GrowHealthy. The loan is due on October 11, 2018 and will bear interest at the rate of 8%.