RIV Capital Inc. (CSE:RIV) (OTC:CNPOF) has completed the initial closing of a previously announced transaction involving Etain, LLC and Etain IP LLC, owners and operators of licensed cannabis cultivation and retail dispensaries in New York.
RIV Capital is acquiring the non-regulated portion of Etain, LLC and Etain IP for approximately $198 million through a combination of cash and newly issued Class A common shares of RIV Capital.
An additional amount of approximately $49 million through a combination of cash and common shares will be paid subject to, among other things, receipt of all required regulatory approvals, including from the New York Cannabis Control Board and the New York State Office of Cannabis Management.
Concurrent with the initial closing, the Hawthorne Collective, Inc., a wholly-owned subsidiary of Scotts Miracle-Gro (NYSE:SMG),
completed its additional $25 million investment in RIV Capital, evidenced by a newly issued convertible note with a principal amount of approximately C$31.3 million and a conversion price of C$1.65 per common share.
About Etain
Etain, the New York cannabis market’s only women-owned and -operated business, is one of the state’s original five medical cannabis license recipients and one of only 10 approved vertically integrated operators. Etain was founded by members of the Peckham family in Chestertown, N.Y., where the business is undergoing significant expansion in its growing and manufacturing space.
Etain has four operating dispensaries, including its Manhattan flagship store and locations in Kingston, Syracuse and Westchester.
“This agreement marks the most significant transaction for a women-owned business in cannabis history. While the Peckham family will be stepping back from control of the company, we will be actively partnered with RIV Capital on preserving the ethos of the Etain brand and utilizing our combined efforts to continually find and make new spaces for women in cannabis," Etain COO, Hillary Peckham stated at the time the transaction was announced.
"RIV Capital clearly recognized the potential for women-led brands to flourish in the cannabis industry, and we are proud that our work at Etain has led us to this point in time,” Peckham added.
Photo courtesy of Peckham family
