There's been plenty of newsflow from diversified US cannabis company iAnthus Capital Holdings Inc (CSE:IAN, OTCQB:ITHUF) in recent weeks as it continues to expand its presence in the US's growing cannabis industry.
And today's deal sees it enter Florida, providing a US$2mln credit facility to emerging cannabis firm GrowHealthy Holdings LLC.
iAnthus believes GrowHealthy could become the pre-eminent provider of medical cannabis in one of the most populous states in the USA.
It owns a cultivation and processing facility on 33 acres in Lake Wales, Florida, which at the time of licensure was the largest cultivation facility in the state.
It also holds one of the 12 current Florida Medical Marijuana Treatment Centers (MMTCs) licensed to provide medical cannabis, with each MMTC allowed to open and operate up to 25 dispensaries.
The movement to legalise cannabis in a majority of US states is drawing interest from an expanding list of companies, as entrepreneurs sense opportunity in a market where growth is virtually guaranteed.
What does iAnthus do?
Legalised cannabis is the fastest growing industry in the US, and the group provides a combination of capital and hands-on operating and management expertise.
It raises capital in Canada, where cannabis is legal for medical use at both the federal and provincial levels, and puts the funds to work in the US market.
READ -iAnthus Capital bordering on big things
A growing US market..
Currently, 29 US states have legalised the use of full-strength medical cannabis, with eight of those states allowing recreational use of the drug as well.
In all, 43 states allow some degree of cannabis use, meaning 93% of Americans live in a state that allows consumption.
According to the latest industry data, direct legal cannabis sales totalled US$7bln in the US in 2016 and by 2020 will reach around US$22bln.
However, although this looks like a good opportunity for businesses, the fact that cannabis is still illegal on a federal basis in the US makes it difficult for entrepreneurs to finance their operations.
A pleasing first half....
The first half of 2017 saw iAnthus enter the 20mln person New York market and continue to expand upon its operations in the four other US states (It is now in six).
Last month, iAnthus announced the acquisition of Citiva Medical LLC and CITIVA USA in an US$18mln deal, exposing it to the New York state, where only ten licenses have been granted.
This coincided with the firm terminating a previously announced term sheet for the US$17.3mln acquisition of Valley Agriceuticals after it couldn't reach a definitive agreement.
In New Mexico, its portfolio company Reynolds Greenleaf & Associates, in which it owns 29%, saw revenues of US$39.8mln in the six months.
It realized US$3.9 million in sales across its three managed licenses in the year so far, a 34% increase over the same period in 2016.
Elsewhere, in Colorado, where it holds two 100% owned subsidiaries, revenue is on pace to hit US$1.5-billion this year, up 25% on 2016, the company said.
In Vermont, it saw US$465,000 net sales through to June 30 with a run rate revenue in the second quarter of US$930,000, up 60% compared to the same time period last year.
In Massachusetts, the Mayflower Medicinals Inc company continued to show robust patient growth with 43,653 registered patients, up 10% in the year to date, the group said.
There are currently 11 dispensaries in Massachusetts, and management estimates that at least three open dispensaries are generating more than US$10mln of run-rate revenues.
Significantly, Mayflower's Holliston 36,000 sq ft cultivation and processing location received approval for phase 1 of the FCR (final certification of registration) in July and seeds are expected to be planted in the fourth quarter, with product ready in the first quarter of 2018.
So things are certainly gathering pace at iAnthus and it should be an interesting stock to watch in coming months.