RIV Capital has completed the final closing of its previously announced transaction involving Etain – owner and operator of a legally-licensed Registered Organization with cannabis cultivation and manufacturing facilities and retail dispensaries in the state of New York – and Etain IP.
"With four dispensaries, including a Manhattan flagship store and locations in Kingston, Syracuse, and Westchester, as well as a cultivation and production facility in Chestertown, we believe Etain is a strong foundation and a scalable platform for future growth," said Mark Sims, President, and CEO of RIV Capital. "We plan to continue Etain's collaboration with diverse New York-owned brands, optimize Etain's attractive retail footprint, and augment Etain's four premium product lines with high-performing west coast brands. The ongoing expansion of Etain's Chestertown cultivation facility, which is nearing completion, and our planned flagship indoor cultivation facility in Buffalo, will enable Etain to better serve medical patients and, eventually, adult-use consumers in New York."
Final closing transaction details
Under the terms of the transaction, RIV Capital paid the remaining purchase price through a combination of approximately US$42 million in cash and the issuance of 5,273,084 Class A common shares in RIV Capital. Following the final closing, the former owners of Etain hold approximately 16% of the issued and outstanding Class A common shares of RIV Capital.
Growth and expansion strategy
RIV Capital's long-term strategy is to build a leading multi-state operating and brand platform, with New York serving as the foundation. The company intends to develop and expand new brands and products designed to resonate with the New York consumer, with plans to offer as one of its core brands Etain's popular product line, which will include new form factors and SKUs in the near future.
The expansion of Etain's Chestertown-based cultivation and production infrastructure, which the company anticipates will be completed by the second quarter of the calendar year 2023, is designed to increase cultivation capacity and support the development of new product formats in anticipation of the launch of adult-use sales in New York. RIV Capital is also in the process of developing a new, state-of-the-art flagship indoor cultivation facility in Buffalo, designed with premier cultivation and production infrastructure specifically tailored to support the premium New York market.
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