Recently completed expansion of Chestertown facility triples current cannabis production capacity
Enhanced research and development capabilities to drive product innovation
Strongly positioned to become a leading supplier to the New York adult-use cannabis market
TORONTO, Nov. 7, 2023 /PRNewswire/ - RIV Capital Inc. (CSE: RIV) (OTC: CNPOF) ("RIV" or the "Company"), a cannabis acquisition and investment firm with a focus on building a leading multistate platform with one of the strongest portfolios of brands in key strategic U.S. markets, today announced that the expansion of its cannabis cultivation and production facility located in Chestertown, New York (the "Chestertown Facility") is now operational.
The recently completed enhancements at the Chestertown Facility include:
- Overall facility footprint expanded to more than 75,000 sq. ft, comprised of:
- High-tech greenhouse cultivation space;
- Lab and manufacturing space;
- Distribution and warehousing space; and
- Finished goods and dry flower storage space.
- The implementation of advanced equipment and automation technologies, which significantly improves the Company's production rate of high-quality flower and extracts.
"The completion of our Chestertown facility is a major milestone in our New York growth story as we near our anticipated and long-awaited entry into the adult-use cannabis market," said Mike Totzke, Interim CEO of RIV Capital. "This expansion, paired with our expertise and advanced knowledge of the state market, will accelerate the development of a robust wholesale program, and significantly increase product output in step with the expansion of New York's consumer base."
"With the Chestertown enhancements, we are now able to produce all of Etain's broad SKU portfolio across 9 distinct form factors for the current medical market, with sufficient capacity to scale up for our anticipated entry into the adult-use market. Additionally, we have begun to ramp up our research and development activities and capabilities even further as we look to diversify our product portfolio. With Chestertown now operational, and our flagship Buffalo facility on pace to come online in the second half of 2024, we believe we are in the strongest position we have ever been to grow our market share and cement our presence as a leading operator in one of the most anticipated markets in the U.S."
Since the completion of the expansion project in Q3 2023, the Company has had three harvests in the expansion space, with yields and flower quality ahead of expectations. Production is well underway with products from the expanded operations available at the Company's four medical retail locations as well as third-party medical retail locations across the state.
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 brands in key strategic U.S. markets. Backed by in-house expertise and cannabis domain knowledge, RIV Capital aims to grow its own brands and partner with established U.S. cannabis operators and brands to bring them to new markets and build market share. RIV Capital established the foundational building blocks of its active U.S. strategy with its previously announced acquisition of Etain. Through its strategic relationship with The Hawthorne Collective, Inc. ("The Hawthorne Collective"), a subsidiary of The ScottsMiracle-Gro Company ("ScottsMiracle-Gro"), RIV Capital is The Hawthorne Collective's preferred vehicle for cannabis-related investments not under the purview of other ScottsMiracle-Gro subsidiaries.
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, Etain and RIV Capital's portfolio companies with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding the Company's strategies, objectives, goals, opportunities and plans, including in respect of Etain and its product portfolio, the Company's expectations regarding adult-use sales in the state of New York, expectations regarding the expansion of the Chestertown facility and expectations related thereto; the Company's expectations and plans regarding Etain's business, including its market share, sales, brand, products and locations; the Company's expectations regarding growth opportunities; the Company's expectations with respect to the development of the Buffalo flagship facility and expectations related thereto, including timing for completion thereof; the Company's expectations regarding its capital allocation strategy; the benefits of the strategic partnership with The Hawthorne Collective and Scotts Miracle-Gro; 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 or its portfolio companies.
Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the Company's ability to execute its go-forward strategy; stock market volatility; changes in the business activities, focus and plans of the Company, Etain and the Company's investees and the timing associated therewith; the timing of any changes to federal laws in the U.S. to allow for the general cultivation, distribution, and possession of cannabis; regulatory and licensing risks; changes in cannabis industry growth and trends; changes in general economic, business and political conditions, including changes in the financial markets; litigation risks; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; risks relating to anti-money laundering laws; compliance with extensive government regulation, including RIV Capital's interpretation of such regulation; public opinion and perception of the cannabis industry; divestiture risks; and the risk factors set out in RIV Capital's management's discussion and analysis dated August 28, 2023 and annual information form dated June 14, 2023 filed with the Canadian securities regulators and available on RIV Capital's profile on SEDAR+ at www.sedarplus.ca.
The Company has invested in and acquired, and intends to in the future invest in and/or acquire, companies that are involved in the manufacture, possession, use, sale, and distribution of cannabis in the recreational and medicinal cannabis marketplace in the United States. Local state laws where such operations occur permit such activities, however, investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable U.S. federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with recreational and medicinal cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve the Company of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in the United States is a significant risk to the business of the Company and any proceedings brought against the Company thereunder may adversely affect the Company's operations and financial performance.
Should one or more of these 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 RIV Capital has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. RIV Capital does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
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SOURCE RIV Capital Inc.
