RIV Capital buys New York cannabis chain Etain for US$247 million

TORONTO – RIV Capital, Inc. says it will purchase medical marijuana retailer Etain in a US$247 million transaction.

The Toronto company previously known as Canopy Rivers says the deal to buy New York-based Etain will be comprised of US$212 million in cash and about US$35 million in Class A common shares in RIV Capital.

The deal is being financed in part by a subsidiary of Scotts Miracle-Gro and when it closes, Etain’s owners will hold about 16 per cent of its issued and outstanding Class A common shares.

RIV Capital says Etain is women-owned and -operated, one of the state’s original five medical cannabis licence recipients and has four operating dispensaries.

RIV Capital plans to invest additional capital and resources into four new Etain dispensaries, and to support the construction of a new flagship indoor cultivation facility that will target the premium market.

The deal is expected to close in the second quarter of 2022, but is subject to approvals.

RIV Capital, which was once the venture capital arm of Canopy Growth Corp., also announced Mark Sims will become its president and chief executive officer.

This report by The Canadian Press was first published March 30, 2022.