Cansortium and RIV Capital Join Forces in Business Merger

Cansortium Inc. and RIV Capital Inc. have announced a definitive arrangement agreement that will see Cansortium acquire all of the issued and outstanding Class A common shares of RIV Capital in exchange for Cansortium Shares. This transaction is expected to create a Combined Company with a strong presence in key U.S. markets, including Florida, New York, Texas, and Pennsylvania.

The Combined Company will have a significant footprint in these states, covering approximately 25% of the U.S. population. With operations in 8 cultivation and processing facilities and 42 retail dispensaries, the Combined Company is poised for growth and profitability in the coming years.

Key highlights of the transaction include the bolstering of the balance sheet, operational efficiencies, strategic partnerships with companies like ScottsMiracle-Gro, and a scalable talent base. The Combined Company is expected to have a pro forma cash balance of approximately US$74 million as of March 31, 2024, and is well positioned to capitalize on growth opportunities in the cannabis industry.

Management of both companies expressed optimism about the transaction, highlighting the potential for synergies, value creation, and growth. The Combined Company will continue to focus on delivering high-quality service to customers while leveraging its operational expertise and financial strength to drive long-term success.

The transaction is subject to shareholder and regulatory approvals, with the closing expected to occur in the fourth quarter of 2024. Upon completion, the Combined Company will operate under the Cansortium name and continue trading on the Canadian Securities Exchange and OTCQB Venture Market. The headquarters will be in Tampa, Florida, with Robert Beasley serving as the Chief Executive Officer of the Combined Company.