[PRESS RELEASE] – NEW YORK and TORONTO, Dec. 30, 2024 – iAnthus Capital Holdings Inc., which owns, operates and partners with regulated cannabis operations across the United States, announced that it entered into an asset purchase agreement with Cheetah Enterprises Inc., pursuant to which iAnthus will acquire the Cheetah vape brand, a fast-growing brand known for its premium quality and disruptive presence in Illinois’ cannabis market.
This acquisition marks a key milestone in iAnthus’ ongoing strategy to elevate its portfolio of consumer-focused cannabis brands and drive long-term growth. The Cheetah brand has become synonymous with innovation and quality, offering premium live resin vape products that have captured the attention of cannabis enthusiasts. By bringing Cheetah into its brand portfolio, iAnthus expands its presence in the Illinois and Pennsylvania cannabis markets with further expansion planned throughout 2025.
The acquisition is expected to bolster iAnthus’ revenue growth while giving Cheetah the resources and distribution network to increase its market penetration in Illinois and other key states. With iAnthus’ expansive footprint, this transaction creates a path for Cheetah to become a national leader in the vape category, offering a new level of excitement and choice for cannabis consumers. Together, iAnthus and Cheetah will leverage shared resources, operational efficiencies and a unified brand strategy to capitalize on growth opportunities across the country.
As part of the acquisition, Michael Piermont, co-founder and CEO of Cheetah, will join iAnthus as chief commercial officer. Piermont’s experience in driving growth, brand development, and technology innovation—including his tenure as chief revenue officer of Leaf Trade, which was successfully acquired by LeafLink in November 2024—will be instrumental in maximizing the potential of Cheetah and iAnthus’ broader brand portfolio.
“We are building a platform where bold brands can thrive, and Cheetah fits that mold perfectly,” iAnthus CEO Richard Proud said. “Cheetah’s innovative approach to the vape market mirrors the agility, precision and speed with which we’re building iAnthus. This acquisition gives us the momentum to win with consumers, expand into new markets and bring top-industry talent into our organization.”
Piermont said, “From day one, Cheetah’s mission has been about being fearless, fast and innovative to our consumers—qualities that clearly align with iAnthus’ vision for the future of cannabis. We’re thrilled to join forces with a team that recognizes the power of brand authenticity, the impact of thinking outside the box and the importance of staying ahead of the curve in this industry.”
Transaction Details
Pursuant to the purchase agreement, iAnthus will acquire substantially all of the assets of seller that relate to and are used in connection with the seller’s cannabis wholesale business, including the manufacture, marketing and sale of cannabis distillate vaporizer products in the states of Illinois and Pennsylvania under the “Cheetah” brand, but excluding certain excluded assets (collectively, the “purchased assets”), together with certain assumed liabilities related to the purchased assets.
The purchase price for the purchased assets includes: common shares in the capital of the company (“shares”) at an aggregate deemed value of approximately US$1.5 million (the “share consideration”), to be issued in three tranches. The shares are issued at a deemed price of US$0.012, which is a premium to the current market price for the shares. The shares will be issued post-closing in three tranches and are subject to Canadian Securities Exchange approval. The purchase price also includes nonmaterial cash payments in four installments payable upon completion of certain performance benchmarks and additional earnout consideration based on EBITDA generated by the brand after closing and certain other performance metrics, payable in cash at various intervals until April 1, 2028.
The shares to be issued as the share consideration will be issued pursuant to a prospectus exemption under Canadian securities law and will be subject to a Canadian holding period expiring four months and a day from the date(s) of issuance. The shares will be issued pursuant to an exemption from the registration requirements under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) provided by Rule 903 of Regulation S promulgated under the U.S. Securities Act.
The shares have not been, nor will they be, registered under the U.S. Securities Act, and may not be offered or sold in the United States or to, or for the account or benefit of, “U.S. persons” (as such term is defined in Regulation S under the U.S. Securities Act) absent registration or an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. The shares will be issued as “restricted securities” as defined in Rule 144(a)(3) under the U.S. Securities Act.
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