Cansortium Inc. and RIV Capital Inc. have entered into a definitive arrangement agreement where Cansortium will acquire all issued and outstanding Class A common shares of RIV Capital in exchange for Cansortium shares. This merger will result in a combined business that spans across four key U.S. states: Florida, New York, Texas, and Pennsylvania, covering approximately 25% of the U.S. population. The merger is expected to bolster the combined company’s balance sheet, with a pro forma cash balance of approximately $74 million as of March 31, 2024, and eliminate $175 million of debt through the exchange of existing convertible notes for new non-voting exchangeable shares. Estimated cost synergies are expected to be $5-10 million annually through operational efficiencies. The combined company will leverage Cansortium’s robust operating expertise, particularly in cultivation, processing, and retail operations, while RIV Capital will continue to expand its multi-state platform and market share through strategic relationships like those with The Hawthorne Collective. The transaction, requiring shareholder and court approvals, is expected to close in the fourth quarter of 2024.

Cannabis, Finance, Mergers and Acquisitions,United States, Canada

https://www.globenewswire.com/news-release/2024/05/30/2890899/0/en/Cansortium-and-RIV-Capital-Announce-Business-Combination.html