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iAnthus CEO Hadley Ford resigns following Special Committee investigation » iAnthus $0.00 / + (+0.00%) ITHUF iAnthus Capital Holdings… iAnthus Capital Holdings announced that its Board of Directors has accepted and considered the report of the special committee of independent directors, which reviewed the allegations of undisclosed related-party transactions against the Company's CEO On March 31, 2020, allegations against the Company were made in an online media report. Broadly stated, the allegations were that Hadley Ford, the Company's CEO, is or has been acting in a conflict of interest and has misused iAnthus' resources to his own benefit. In response, the Board determined that it was in the best interests of the Company to form the Special Committee and retain outside counsel to conduct a detailed investigation. The Special Committee's investigation examined all material allegations against the Company included in the Online Report. Two allegations were substantiated and the Special Committee recommended further action. The Special Committee concluded, and the Board accepted, that Ford entered into two undisclosed loans and those loans created a potential or apparent conflict and should have been disclosed to the Board in a timely way. With respect to the loan with the related-party, the Online Report included an allegation that Mr. Ford entered into an undisclosed loan transaction with the managing member of iAnthus' senior secured lender, Gotham Green Partners. The Special Committee considered the allegation and the relevant details, are summarized as follows: On December 20, 2019, iAnthus and Gotham Green closed an additional $36.15M of senior secured convertible notes from Gotham Green and additional co-investors. A day after the close of the Third Tranche, on December 21, 2019, Ford and the Managing Member, entered into a loan for the principal sum of US$100,000, documented by an email. The loan bore no interest and was to be repayable on March 31, 2020. The loan has not been repaid. The Special Committee did not find a basis to conclude that Ford's conduct in the face of the potential or apparent conflict impacted the terms, timing, or negotiations the Company had with the related-party or the non-arm's length party. Nevertheless, the Special Committee concluded, and the Board accepted, that the failure to disclose such personal loans to the Board was a breach of the Company's conflict policies and other obligations as an officer and director of the Company. The Board has accepted Ford's immediate resignation as CEO. Ford also resigned as a director of the Company and as an officer and director of the Company's subsidiaries. The Board has appointed Randy Maslow as interim CEO effective immediately. Mr. Maslow is the co-founder of iAnthus and has served as the President and a director of the Company since its inception. Show Hide Related Items >> << Street Research ITHUF iAnthus $0.00 / + (+0.00%) 02/14/20 Cantor Fitzgerald Cantor initiates 10 cannabis names, sees opportunity after sellofff 02/14/20 Cantor Fitzgerald iAnthus initiated with a Neutral at Cantor Fitzgerald