RIV Capital Inc. (OTCPK:CNPOF) (CSE:RIV) has completed the final closing of its previously announced transaction involving Etain, LLC – 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 LLC.
Final Closing Transaction Details
Under the terms of the transaction, RIV Capital paid the remaining purchase price through a combination of approximately $42 million in cash and the issuance of 5.3 million 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
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 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 second quarter of 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, flagship indoor cultivation facility in Buffalo.
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Photo: Benzinga; Sources: courtesy of geralt, lindsayfox via Pixabay
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