RIV Capital Provides Update on Revenue Performance and Synergy Realization Ahead of Anticipated Business Combination
RIV Capital reported significant operational progress ahead of its business combination with Cansortium. Based on preliminary estimates, year-to-date net revenue doubled compared to the previous year, with strong growth in Q3 2024. The company expanded its wholesale business to over 50 customers and operationalized two additional co-located adult-use retail dispensaries in Kingston and Manhattan. RIV Capital executed a distribution partnership with Nabis to support wholesale division expansion and received approval from the New York Control Board for the Business Combination. The company also reported faster-than-anticipated pre-closing cost savings and synergies.
RIV Capital ha riportato un significativo progresso operativo in vista della sua combinazione aziendale con Cansortium. Sulla base di stime preliminari, il fatturato netto dall'inizio dell'anno è raddoppiato rispetto all'anno precedente, con una forte crescita nel Q3 2024. L'azienda ha ampliato la sua attività all'ingrosso a oltre 50 clienti e ha attivato due ulteriori dispensari di vendita al dettaglio per uso adulto a Kingston e Manhattan. RIV Capital ha stipulato una partnership di distribuzione con Nabis per supportare l'espansione della divisione all'ingrosso e ha ricevuto l'approvazione dal New York Control Board per la combinazione aziendale. L'azienda ha anche riportato risparmi sui costi e sinergie pre-chiusura superiori alle aspettative.
RIV Capital reportó un progreso operativo significativo antes de su combinación de negocios con Cansortium. Según estimaciones preliminares, los ingresos netos acumulados del año se duplicaron en comparación con el año anterior, con un fuerte crecimiento en el Q3 2024. La empresa amplió su negocio mayorista a más de 50 clientes y activó dos dispensarios adicionales de venta al por menor para uso adulto en Kingston y Manhattan. RIV Capital ejecutó una asociación de distribución con Nabis para apoyar la expansión de su división mayorista y recibió la aprobación de la Junta de Control de Nueva York para la Combinación Empresarial. La empresa también informó sobre ahorros en costos y sinergias previas a la fusión más rápidos de lo anticipado.
RIV Capital는 Cansortium과의 비즈니스 조합에 앞서 상당한 운영 진전을 보고했습니다. 초기 추정치에 따르면, 올해 누적 순수익은 전년 대비 두 배로 증가했으며, 2024년 3분기에 강력한 성장을 보였습니다. 이 회사는 도매 사업을 50개 이상의 고객으로 확장하고 킹스턴 및 맨해튼에 두 개의 추가 성인용 소매 매장을 운영하게 되었습니다. RIV Capital은 도매 부서 확장을 지원하기 위해 Nabis와의 유통 파트너십을 체결했으며, 비즈니스 조합을 위해 뉴욕 통제 위원회로부터 승인을 받았습니다. 이 회사는 또한 예상보다 빠른 폐쇄 전 비용 절감 및 시너지를 보고했습니다.
RIV Capital a rapporté des progrès opérationnels significatifs avant sa combinaison d'affaires avec Cansortium. Selon les premières estimations, le chiffre d'affaires net depuis le début de l'année a doublé par rapport à l'année précédente, avec une forte croissance au Q3 2024. L'entreprise a élargi son activité de gros à plus de 50 clients et a ouvert deux nouveaux points de vente au détail pour adultes à Kingston et Manhattan. RIV Capital a signé un partenariat de distribution avec Nabis pour soutenir l'expansion de sa division de gros et a obtenu l'approbation de la New York Control Board pour la combinaison d'affaires. L'entreprise a également signalé des économies de coûts et des synergies avant la clôture plus rapides que prévu.
RIV Capital berichtete über signifikante betriebliche Fortschritte im Vorfeld seiner Unternehmenszusammenführung mit Cansortium. Basierend auf vorläufigen Schätzungen verdoppelte sich der Nettoumsatz seit Jahresbeginn im Vergleich zum Vorjahr, mit starkem Wachstum im Q3 2024. Das Unternehmen erweiterte sein Großhandelsgeschäft auf über 50 Kunden und betrieb zwei weitere gleichzeitig betriebene Einzelhandelsgeschäfte für Erwachsene in Kingston und Manhattan. RIV Capital schloss eine Vertriebspartnerschaft mit Nabis ab, um die Expansion der Großhandelsabteilung zu unterstützen, und erhielt die Genehmigung der New Yorker Kontrollbehörde für die Unternehmenszusammenführung. Das Unternehmen berichtete auch von schnelleren als erwarteten Kosteneinsparungen und Synergien vor der Schließung.
- Year-to-date net revenue doubled compared to previous year
- Record Q3 2024 performance in retail transactions and wholesale accounts
- Wholesale business expanded to over 50 customers
- Two new adult-use retail dispensaries opened in Kingston and Manhattan
- Pre-closing cost savings and synergies achieved faster than anticipated
- None.
Significant Year-Over-Year Net Revenue Growth Driven by Robust Retail Performance Following Adult-Use Sales Launch in
Pace of Synergy Realization faster than Expected, Strongly Positioning the Company for its Anticipated Business Combination with Cansortium
Recent Operational Highlights:
- Based on preliminary estimates of financial results, year-to-date net revenue, as of October 23, 2024, doubled compared to the same period in the prior calendar year, with substantial growth in the third quarter of 2024 ("Q3 2024") and momentum expected to continue to build in the fourth quarter of 2024.
- In step with the Company's record revenues for Q3 2024, several additional milestones were achieved in Q3 2024, including a record number of retail transactions, wholesale retail accounts and bulk buyers. This was supported by the operationalization of two additional co-located adult-use retail dispensaries located in
Kingston andManhattan at the end of the Q3 2024. - Successfully expanded the Company's wholesale business to over 50 customers, enhancing RIV Capital's market reach and further strengthening its relationships within the industry.
- Executed a distribution partnership agreement on October 16, 2024 with Siban Holdings, Inc. ("Nabis") to support the expansion of the Company's wholesale division that is anticipated to commence in the fourth quarter of 2024. The partnership is expected to strengthen retailer service levels, increases delivery frequency and expands statewide third-party retailer coverage in
New York . - Continued to enhance cultivation practices to support growth, expand the Company's product portfolio, and drive operational efficiencies.
- Initial pre-closing cost savings and synergies were realized by the Company at a faster pace than initially anticipated, which better positions the Company for a more efficient integration with Cansortium following the closing of the Business Combination.
- Received approval from the New York Control Board on October 10, 2024 for the Business Combination.
"Q3 2024 marked a turning point for RIV Capital and its shareholders as the team translated strategy and execution into a record setting year. We expect the acceleration of our revenue growth to continue in Q4 2024 as we further optimize and unlock the potential of our company owned retail stores while concurrently scaling our wholesale business in-step with the rapid expansion of dispensary licenses issued by the Office of Cannabis Management in
All figures with respect to year-to-date net revenue are preliminary and are unaudited and subject to change and adjustment as the Company prepares its consolidated financial statements for the period ended September 30, 2024 and the year ended December 31, 2024. Accordingly, investors are cautioned not to place undue reliance on the foregoing information. The Company does not intend to provide preliminary results in the future. The preliminary results provided in this news release constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and
About RIV Capital
RIV Capital is an acquisition and investment firm with a focus on building a leading multistate platform with one of the strongest portfolios of cannabis brands in key strategic
Forward Looking Statements
This news release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of RIV Capital, its portfolio companies, and Etain with respect to future business activities and operating performance. To the extent any forward-looking information in this news release constitutes "financial outlooks" within the meaning of applicable Canadian securities laws, such information is being provided as preliminary financial and operational results and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Often, but not always, forward-looking information can be identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Cansortium, RIV Capital or their respective subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. Examples of such statements include, but are not limited to, statements regarding: the Company's net revenue year-to-date and its net revenue in comparison to the prior financial year; the outcome and anticipated benefits of the Business Combination; estimated synergies as a result of the Business Combination; no event will occur that would adversely impact the estimated net revenues of the Company; expectations with respect to the Company's future revenues and its ability to maintain its revenue growth; expectations with respect to the Company's wholesale business expansion and the outcome of the distribution partnership with Nabis; expectations with respect to the potential growth of the Company's wholesale division; the Company having all of the final data to report its Q3 2024 financial results and expectations for other economic, business, and/or competitive factors.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although RIV Capital believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of RIV Capital, its portfolio companies, and/or Etain.
Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: preliminary financial and operational results are subject to the completion of the Company's financial closing procedures and have not been audited or reviewed by the Company's independent auditor; the ability of the Company and Cansortium to satisfy, in a timely manner, the conditions to the completion of the Business Combination; the prompt and effective integration of Cansortium's and RIV Capital's businesses and the ability to achieve the anticipated synergies contemplated by the Business Combination; a delay in the publication of the Company's Q3 2024 financial results, unanticipated events having an adverse impact on the Company's estimated net revenues; RIV Capital's ability to execute its go-forward strategy; stock market volatility; changes in the business activities, focus and plans of RIV Capital, Etain and RIV Capital's investees and the timing associated therewith; the timing of any changes to federal laws in the
Cansortium and RIV Capital, through several of their respective subsidiaries, are directly involved in the manufacture, possession, use, sale, and distribution of cannabis in the adult-use and medical cannabis marketplace in the
While the approach to enforcement of such laws by the federal government in the
Should one or more of the foregoing risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Cansortium and RIV Capital have attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The forward-looking information and statements included in this news release are made as of the date of this news release and Cansortium and RIV Capital do not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
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SOURCE RIV Capital Inc.
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