iAnthus Capital Holdings, Inc. (CSE:IAN) (OTCQX:ITHUF) had a great day yesterday, rising 33% while the larger markets took yet another hit. From the beginning of the month, iAnthus is up a total of 25%, making it one of the select pot stocks trending towards the green right now.
While analysts and investors wait for the cannabis resurrection, it’s worth profiling the stocks that are able to remain attractive throughout the downturn. As always, Rich is here to break down the news for the members of RichTV Live.
“They’ve been jumping up the market for a couple weeks now,” says Rich. “They’re up 50% from the bottom, and hopefully they continue to go up.”
iAnthus’ Recent News
iAnthus Capital owns and operates licensed cannabis cultivation, processing, and dispensary facilities throughout the US. The company provides investors with diversified exposure to the regulated cannabis industry in America. It currently has 27 open dispensaries across 11 states.
At the end of September, the company announced that Gotham Green Partners invested $20 million through the purchase of securities from iAnthus. This investment is part of a broader financing plan worth $100 million to support the build-out of all existing markets in which iAnthus currently operates. Some of the funds will also be used to continue developing the company’s retail and product brands.
Hadley Ford, CEO of iAnthus, says that the GGP funding will ultimately “provide the necessary capital for iAnthus to achieve positive and sustainable EBITDA and operational free cash flow in 2020.”
According to the company’s COO Pat Tiernan, iAnthus has never been stronger than it is right now. 11 of its 27 dispensaries have opened in the last ten months, and the company is working aggressively to open another dozen in the next six months. The markets that iAnthus is targetting include Colorado, Florida, Maryland, Massachusetts, and Nevada.
“Pro forma for our pending Sierra Well acquisition, we are generating in excess of $10 million of reported and managed revenue per month, with a rational cost structure that has us well-positioned for future success,” adds Tiernan.
This news has carried IAN stock throughout the month, and analysts are reporting favorable coverage of the company. But there’s also been some large optimism in the cannabis space that could provide a much-needed boost to the industry.
Optimism Off of Aphria Results
Last week, Aphria Inc (TSX:APHA) (NYSE:APHA) posted net revenue of $126.1 million for its Q1 2020 financial results. These not only cemented APHA’s reputation as a stable stock, but it also restored some measure of trust in the cannabis industry.
Seeking Alpha credits Aphria’s positive results with boosting the performance of pot stocks like iAnthus and Harvest Health & Recreation Inc (CSE:HARV) (OTCQX:HRVSF). As October begins its transition into November, cannabis investors may finally begin seeing a leveling-off of the markets.
“Don’t sell, just hold the line,” Rich advises his community members. “These stocks aren’t going to go all 2020 without exploding. So I’m just going to keep buying at these prices.”
What do you think? Is iAnthus’s slow and steady climb up the markets a sign of good things to come for the industry? Let us know what you’re thinking about pot stocks in the comments below.
Featured image: DepositPhotos © weerapat