iAnthus Reports Fiscal 3rd Quarter 2020 Financial Results and Provides Update on Executive Team.

NEW YORK and TORONTO: iAnthus Capital Holdings, Inc. ("iAnthus" or the "Company") (CSE: IAN) (OTCPK: ITHUF), which owns, operates, and partners with regulated cannabis operations across the United States, reports its financial results for the third quarter ended September 30, 2020. The Company's Financial Statements for the third quarter ended September 30, 2020 and the related Management's Discussion & Analysis can be accessed on the Company's SEDAR profile at www.sedar.com and on the Company's website at www.ianthus.com. Amounts are in U.S. Dollars, unless stated otherwise.

Third Quarter 2020 Financial Updates

Revenue of $40.6 million, up 17% from the prior quarter

Gross margin for the quarter was 62.9%, up from 54.8% in the prior quarter

Net loss of $9.7 million, or a loss of $0.06 per share, versus a net loss of $20.9 million, or a loss of $0.12 per share, in the prior quarter

Due to liquidity constraints experienced by the Company, the Company did not make applicable interest payments due on its 13% senior secured convertible debentures ("Secured Notes") and its 8% convertible unsecured debentures ("Unsecured Debentures") due on March 31, 2020, June 30, 2020, or September 30, 2020. As previously disclosed, the non-payment of interest in March 2020 triggered an event of default with respect to these components of the Company's long-term debt, consisting of principal amounts at face value of $97.5 million and $60.0 million and accrued interest amounts as of September 30, 2020 of $11.4 million and $3.6 million on the Secured Notes and Unsecured Debentures, respectively. In addition, as a result of the default, the Company has accrued additional fees and interest of $13.3 million in excess of the amounts stated above that are further detailed in the Company's Financial Statements

Table 1: Q3 2020 Financial Results

in thousands of US$, except share and per share amounts (unaudited)

Q3 2020

Q2 2020

Q3 2019

Revenue

$

40,616

$

34,646

$

22,341

Gross profit, excluding fair value items

25,559

18,994

10,742

Gross margin, excluding fair value items

62.9%

54.8%

48.1%

Net loss

(9,698)

(20,927)

(15,270)

Net loss per share

(0.06)

(0.12)

(0.09)

Recapitalization Transaction

On October 5, 2020, the Company received final approval from the Supreme Court of British Columbia (the "Court") for the Company's plan of arrangement approved by securityholders on September 14, 2020 (the "Plan of Arrangement") to implement the Company's previously announced...