RIV Capital Inc. (CSE:RIV) (OTC:CNPOF) reported on Friday its third quarter results for the three months ended Sept. 30, revealing a 28% sequential, and 186% year-over-year, increase in net revenue to $4.9 million.
Out of that sum, retail revenue accounted for $3.4 million, up from $1.5 million in the third quarter, reflecting strong growth from adult-use dispensaries in New York. Wholesale revenue surged to $1.6 million, up from $0.3 million over the same period, the company said in a press release.
RIV Capital, a company focused on building a multi-state platform with a portfolio of cannabis brands and the operator of the Etain brand in New York, is planning to merge with Cansortium Inc. (CSE:TIUM) (OTCQB:CNTMF), which operates under the FLUENT brand. The merger, expected to close in early December 2024, aims to position the combined company to serve 25% of the U.S. population, with eight cultivation and processing facilities and 42 retail dispensaries across key markets.
“Since announcing the proposed Business Combination with Cansortium, we’ve identified and captured substantial synergies, and our joint integration efforts are progressing smoothly," Dave Vautrin, the company's chief retail officer and interim CEO, said. "With Cansortium, we’re poised to complete this transaction on a solid foundation and positioned to quickly capitalize on the combined expertise and experience of our teams in some of the most dynamic markets in the cannabis industry.”
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Q3 2024 Financial Highlights
- Net loss was $63.4 million, compared to a net loss of $7.4 million in the prior year's period, driven by a $67.4 million non-cash impairment of intangible assets related to the acquisition of Etain LLC’s cannabis license rights and brands.
- Gross loss was $1.2 million, compared to a gross profit of $51,000 in the same period last year.
- Selling, general and administrative expenses decreased to $4.6 million, down from $4.8 million in the third quarter of the past fiscal year.
- Adjusted EBITDA, a metric that excludes one-time expenses and non-cash items to reflect operational performance, came in negative at $3.2 million, an improvement compared to the $5 million loss in the prior year's period.
- Net cash flows used in operating activities amounted to $9.3 million for the nine months ended September 30, 2024.
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