(CNPOF) – RIV Capital announces the first revenues from the acquisition of Etain and reduces the net loss by 85%

RIV Capital Inc. CNPOF IVRreleased its financial results for the quarter ended June 30, 2022, revealing revenues, net of excise taxes, of $1.3 million. The company did not report any revenue for reporting periods ending on or before March 31, 2022.

First Quarter 2023 Highlights

  • Retail revenue of $1.3 million was generated from Tin, LLCin Manhattan, Kingston, Syracuse, and Yonkers, and $200,000 in wholesale revenue was generated from sales of Etain-branded products to other registered organizations in New York.

  • Gross profit of $500,000 for the three months ended June 30, 2022.

  • Net loss of $3.5 million and basic and diluted EPS of ($0.02) for the three months ended June 30, 2022, compared to a net loss of $24.5 million and basic and diluted EPS of ($0.17) for the same period last year.

  • Overall loss of $8.0 million for the three months ended June 30, 2022, compared to a total comprehensive loss of $21.3 million for the same period last year.

  • Initial Closing of the Acquisition of Ownership and Control of Etain, LLC and Tin IP LLC completed in April 2022.

  • Further integration of the Tin business to optimally position the company for the launch of the adult cannabis market in New York

  • Approximately $170 million in available cash to support Etain’s acquisition and long-term expansion plans

“Following the initial closing of Etain’s non-regulated assets in April 2022, we remain confident that we have selected the ideal platform for growth as the New York market nears the launch of adult use sales,” said declared Tag Sims, President and CEO of RIV Capital. “While the final transfer of interests from Etain, the licensing entity, is currently under review by New York State regulators, the structure of the acquisition gave us ownership of the assets unregulated Etain, and as a result, we have been working diligently with the Etain team to appropriately scale their existing infrastructure, processes and systems.We expect a significant increase in revenue and Etain’s cash flow following the launch of adult sales in New York, which Etain plans to support alongside the state’s medical program once legally authorized.

Tin Acquisition and Integration

In April 2022, RIV Capital announced the completion of the initial closing of its previously disclosed transaction involving Etain, owners and operators of a legally licensed registered organization with cannabis cultivation and retail dispensaries in the State of New York. In accordance with the initial closing, RIV Capital acquired the non-regulated part of the Etain companies. Subject to receipt of relevant approvals by New York State regulators, including the New York Cannabis Control Board (the “CCB”) and the New York State Office of Cannabis Management (the “OCM”), the second closing and transfer of the licensee entity’s equity investment is expected to occur in the second half of calendar year 2022.

Following the initial close, the company was able to provide a variety of support services, including advice on implementing new cultivation and manufacturing best practices, leveraging the knowledge of the services team. techniques of The Hawthorne Gardening Societya subsidiary of The Scotts Miracle-Gro Company machine gunstrategic partner of RIV Capital, with the aim of optimizing the design and layout of the extension of the Chestertown d’Etain cultivation facilities.

As previously announced, RIV Capital is also in the process of developing a new state-of-the-art flagship indoor grow facility in Buffalo, designed with top-notch growing and production infrastructure purpose-built to support the high-end market of New York. RIV Capital expects to inaugurate the new flagship facility in the fourth quarter of calendar year 2022. Operation of the flagship facility is also subject to obtaining CWB and CMO regulatory approvals. .

Growth and expansion strategy

The company intends to develop and expand new brands and products designed to resonate with the New York consumer, with the intention of offering as one of its core brands the product line popular brands from Etain, which will include new form factors and SKUs later this year.

Once adult-use sales begin, the company expects business to increase significantly, with expanded operations coming online to meet growing consumer demand expected across the state. The company further believes that adding capacity to Tin’s existing cultivation and manufacturing footprint will allow it to continue to effectively serve the New York medical market, even as adult use expands throughout. the state.

While RIV Capital remains focused on operationalizing its New York platform before undertaking major expansions elsewhere, the company continues to actively explore M&A opportunities as part of its corporate strategy. global. In challenging market conditions, RIV Capital’s strong liquidity positions the company well to build its US platform as the market evolves. The company intends to take full advantage of its strong cash position when the right opportunity arises and aims to provide updates on its progress as its US operations begin to expand.

picture by Marco Mackenzie on Unsplash

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