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, announces, further to its news release of June 16, 2021, that the Company has settled the terms of a contingent long-term incentive plan (“LTIP”) for certain employees of the Company and certain of its subsidiaries. The Company’s board of directors (the “Board”) has approved the allocations under a new LTIP, which are contingent upon the closing of the previously announced recapitalization transaction (the “Recapitalization Transaction”) contemplated by the Restructuring Support Agreement dated July 10, 2020, as amended on June 15, 2021 (the “RSA”). Pursuant to the RSA, a to-be-determined amount of equity was agreed to be made available for management, employee, and director incentives. The LTIP is expected to assist the Company in the retention and recruitment of essential employees through the extended and uncertain closing period of the Recapitalization Transaction.
The Company’s current outstanding stock option pool, held by 177 individuals, represents 5.76% of the common shares of the Company on an as-converted basis. Contingent on the closing of the Recapitalization Transaction, this stock option pool will be replaced by a new LTIP consisting of a combination of restricted stock units and stock options, which together will equate to approximately 5.75% of the pro forma common shares of iAnthus on an as-converted basis. The LTIP will cover 251 employees of the Company.
The Company, with the support of the Lenders and Consenting Debenture Holders, engaged a leading independent compensation consultant to advise the Company in developing the LTIP.