New York Cannabis Control Board Approves Change Of Control Of Etain's Vertically Integrated License

RIV Capital Inc. RIV CNPOF, an acquisition and investment firm announced Monday that the New York State Cannabis Control Board ("CCB") and the New York State Office of Cannabis Management ("OCM") approved Etain, LLC's ("Etain") change of control request.

RIV Capital Inc. is focused on building a leading multi-state platform with a strong portfolio of cannabis brands in key strategic markets in the United States. In addition, Etain, LLC is its legally licensed registered organization with cannabis cultivation and manufacturing facilities and retail dispensaries in New York State.

According to a press release, this approval clears the path for the Company to complete its previously announced acquisition of ownership and control of Etain and Etain IP LLC, as all necessary regulatory approvals have been obtained.

The final closing of the transaction remains subject to customary closing conditions and is expected to occur by the end of the fourth quarter of the calendar year 2022.

“All required regulatory approvals to complete RIV's Etain transaction have been obtained, with final closing expected by the end of Q4 2022,” reads the press release.

Background:

In May, RIV Capital Inc. received notice of an Ontario Superior Court of Justice application by JW Asset Management (JWAM) in connection with the company's process regarding its acquisition of ownership and control of Etain, LLC and Etain IP LLC.

JWAM, an investment firm focused on the pharmaceutical and cannabis industries, is the holder of approximately 20.4% of the company's issued and outstanding Class A common shares. Its president and chief investment officer, Jason Wild, both individually and through JWAM beneficially owns approximately 35.8% of TerrAscend Corp. (OTCQX: TRSSF)
Etain 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 marijuana cultivation and retail dispensaries in NY State.
Growth and Expansion Strategy: While RIV Capital remains focused on operationalizing its New York platform before undertaking significant expansions elsewhere, the company continues to actively explore M&A opportunities as part of its overall corporate strategy.

Amid difficult market conditions, RIV Capital’s strong liquidity puts the company in a favorable position to build its U.S. platform as the broader market evolves. The company intends to take full advantage of its significant cash position when the right opportunity presents itself and aims to provide updates on its progress as its U.S. operations begin to scale.

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