ScottsMiracle-Gro Poised to Advance Cannabis Strategy in New York, Florida and other states GlobeNewswire May 30, 2024 --> announced its support for the planned combination of RIV Capital and Cansortium,
-->stating the move will enhance its strategic stake in cannabis cultivation and retail operations in important high-growth states.
"The combination of these two companies is a transformative step in the strategy we initiated in 2021 when we first invested in RIV Capital," said Jim Hagedorn, chairman, CEO and president of ScottsMiracle-Gro.
"Despite delays with adult-use implementation in New York, RIV Capital has become a legitimate player in the state's medical and recreational cannabis market.
Cansortium, meanwhile, is a proven operator with licenses in Florida, Texas, Pennsylvania and Alabama.
-->Together, they will have the financial means and strong operating team to expand in four of the five most populous states, leading to value-creation opportunities for RIV and Cansortium shareholders as well as our ScottsMiracle-Gro investment."
RIV Capital and Cansortium --> announced today that they have agreed to combine and move forward as Cansortium.
Through its subsidiary, The Hawthorne Collective, ScottsMiracle-Gro previously invested $175 million in unsecured convertible notes in RIV Capital.
Upon approval of the RIV Capital and Cansortium deal by regulators and shareholders later this year, ------ The Hawthorne Collective will exchange the RIV notes for non-voting exchangeable shares of Cansortium.
These shares can be converted into common shares of Cansortium at The Hawthorne Collective's discretion.
As the largest investor in RIV, ScottsMiracle-Gro sought to provide RIV with a strong balance sheet
We're pleased with RIV's accomplishments in New York, as it has built out cultivation operations and opened a flagship White Plains dispensary that is exceeding expectations," said Chris Hagedorn, president of The Hawthorne Collective and division president at ScottsMiracle-Gro.
"Cansortium's sophisticated operating model can accelerate expansion in New York, while RIV's cash position can fund growth in Florida, where adult use is on the November ballot.
-->Longer term, we expect the combined Cansortium business to aggressively pursue M&A aimed at geographic expansion and the creation of a portfolio that includes the best cannabis brands with the highest consumer demand."