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Private Equity
gothamgreenpartners.com

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Investments

20

Portfolio Exits

2

Funds

11

About Gotham Green Partners

Gotham Green Partners is a New York-based private equity firm focused on deploying capital into cannabis and cannabis-related enterprises on a global scale. The firm manages a diversified portfolio of investments and is actively investing across the cannabis value chain.

Gotham Green Partners Headquarter Location

489 Fifth Ave Suite 29A

New York, New York, 10017,

United States

212-659-3838

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Latest Gotham Green Partners News

Hard Money to Owe: Gotham Green Partners v. iAnthus Capital Holdings, Inc.

Aug 3, 2022

To embed, copy and paste the code into your website or blog: <iframe frameborder="1" height="620" scrolling="auto" src="//www.jdsupra.com/post/contentViewerEmbed.aspx?fid=1be29730-50b2-4467-b0b2-244b81ef2d7e" style="border: 2px solid #ccc; overflow-x:hidden !important; overflow:hidden;" width="100%"></iframe> A dispute making its way through Canadian courts shows how cannabis companies in the United States face stiff challenges raising money to expand their operations, even as states begin regulating cannabis markets across the country in an industry projected to surpass $40 billion by 2025. Many experts have stated that as cannabis borrowers desperately seek cash to grow, they often agree to terms that heavily favor the lender and often result in transferring ownership to those who provide the capital. This is considered a form of predatory lending that is plaguing many entities in the cannabis industry – and is something startup cannabis companies seeking to operate in New York need to be aware of as decisions on licenses in New York are made. The dispute at issue is Gotham Green Partners v. iAnthus Capital Holdings, Inc. The saga begins in June 2018, when iAnthus Capital Holdings Inc. (“iAnthus”), which is a cannabis cultivation, processing and retail company, had operations in six (6) U.S. states. iAnthus wanted to become a national player in the cannabis industry, but lacked the capital needed to expand into other Markets. Due to the fact that cannabis is still federally illegal, iAnthus had few traditional options available to securing the needed funding. This ultimately led to iAnthus reaching out to Gotham Green Partners, which had emerged as one of the biggest lenders in the cannabis industry, to help with its cash flow issue. Gotham Green first provided iAnthus with a loan for $40 million in 2018. Then in September 201, Gotham Green agreed to an additional $100 million financing plan (the “Plan”). After the execution of the Plan, Gotham Green provided iAnthus with a total of $56 million in two (2) separate installments. According to the terms of the plan with iAnthus, Gotham Green was under no legal obligation to provide the remaining $44 million of the $100 million in financing. During the start of the COVID-19 pandemic, representatives of iAnthus requested paperwork regarding the deferral of interest payments to be made on the loan. The CEO of iAnthus, Hadley Ford, alleges that Gotham Green told them to not worry about making any of the interest payments. While it appeared to be a financial lifeline at the time, the series of deals could ultimately prove catastrophic for iAnthus shareholders, potentially wiping out hundreds of millions of dollars from investors and giving Gotham Green ownership, according to investors and court documents. According to investors, once iAnthus missed its March 2020 payment, Gotham Green took steps to seize control of iAnthus by filing a lawsuit in the Ontario courts, proposing a restructuring agreement. Canadian courts have largely ruled in Gotham Green’s favor, approving the restructuring agreement that would wipe out shareholder value and extending the deadline for regulator approvals. There is a growing trend of established cannabis companies, based in the United States, tapping the Canadian capital markets. This is largely due to the fact that Canada affords bankruptcy protection, referred to as an “insolvency proceeding,” to cannabis companies. It also allows them to list cannabis related shares publicly on the Canadian Securities Exchange. Many investors also blame iAnthus executives for what happened. Lawsuits filed in U.S. federal courts accuse iAnthus executives of conspiring with Gotham Green to defraud investors, who question why iAnthus defaulted on the interest payment despite being required by the terms of the first loan to maintain an escrow fund for it. This allegation appeared in investor lawsuits, which thus far have been dismissed by the courts. These disputes over funding can have significant and unpredictable consequences. Litigation in Florida stemming from the iAnthus case focuses on the actions of Florida regulators in approving the recapitalization of the companies. We will likely see similar proceedings commenced in other states too.

Gotham Green Partners Investments

20 Investments

Gotham Green Partners has made 20 investments. Their latest investment was in Lucid Green as part of their Series B on March 3, 2022.

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Gotham Green Partners Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

3/28/2022

Series B

Lucid Green

$10M

Yes

3

8/25/2021

Series C

Jane Technologies

$100M

No

31

3/31/2021

Series A - III

Trait Biosciences

$25.28M

Yes

3

3/5/2021

Debt

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$99M

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10

2/2/2021

Unattributed

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$99M

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10

Date

3/28/2022

8/25/2021

3/31/2021

3/5/2021

2/2/2021

Round

Series B

Series C

Series A - III

Debt

Unattributed

Company

Lucid Green

Jane Technologies

Trait Biosciences

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Amount

$10M

$100M

$25.28M

$99M

$99M

New?

Yes

No

Yes

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Co-Investors

Sources

3

31

3

10

10

Gotham Green Partners Portfolio Exits

2 Portfolio Exits

Gotham Green Partners has 2 portfolio exits. Their latest portfolio exit was LucidMood on January 31, 2022.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

1/31/2022

Acquired

$99M

4

8/18/2021

Corporate Majority - P2P

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$99M

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10

Date

1/31/2022

8/18/2021

Exit

Acquired

Corporate Majority - P2P

Companies

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Valuation

$99M

$99M

Acquirer

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Sources

4

10

Gotham Green Partners Fund History

11 Fund Histories

Gotham Green Partners has 11 funds, including Gotham Green Fund 1 LP.

Closing Date

Fund

Fund Type

Status

Amount

Sources

12/31/2017

Gotham Green Fund 1 LP

Early-Stage Venture Capital

Closed

1

Gotham Green Partners SPV VII

1

Gotham Green Partners SPV VI Offshore

1

Gotham Green Partners SPV IV

10

Gotham Green Fund I (Q)

10

Closing Date

12/31/2017

Fund

Gotham Green Fund 1 LP

Gotham Green Partners SPV VII

Gotham Green Partners SPV VI Offshore

Gotham Green Partners SPV IV

Gotham Green Fund I (Q)

Fund Type

Early-Stage Venture Capital

Status

Closed

Amount

Sources

1

1

1

10

10

Gotham Green Partners Team

1 Team Member

Gotham Green Partners has 1 team member, including current Managing Partner, Jason Adler.

Name

Work History

Title

Status

Jason Adler

Managing Partner

Current

Name

Jason Adler

Work History

Title

Managing Partner

Status

Current

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