The ink hasn’t dried on the failed appeal for iAnthus Capital (CSE: IAN) shareholders in related to its recapitalization transaction, yet the company is taking on more secured debt. The company this evening announced that it has secured a $11.0 million bridge note financing, which is secured against its iAnthus New Jersey assets.

Unsurprisingly, the secured note financing comes from none other than Gotham Green Partners, although its unclear what portion of the loan is being provided by the firm. Given that GGP is now referred to as a related party, the details of the transaction outlines that “certain of the lenders may be considered related parties,” while specifically outlining the involvement of the fund.

The secured notes are slated to mature February 2, 2023, with the $11.0 million in aggregate loans bearing interest at a rate of 14.0% per annum. Interest on the debt will be lowered to 8.0% per annum upon the completion of the recapitalization transaction, while the maturity date of the debt is to be advanced in the event the company raises at least $10.0 million in net proceeds via an equity financing.

The debt is to be secured by all assets of iAnthus NJ, with the company providing a guarantee in respect of all debt as well.

Proceeds from the financing are to be used for the construction and improvement of New Jersey facilities leased or owned by the New Jersey subsidiary. Upon completion, the facilities will then be subleased to MPX New Jersey.

iAnthus Capital last traded at $0.245 on the CSE.

Information for this briefing was found via Sedar and iAnthus Capital Holdings Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.