Monday, January 30, 2023
HomeMarketCannabis investment firm RIV Capital posts loss with impairment on Etain acquisition

Cannabis investment firm RIV Capital posts loss with impairment on Etain acquisition

- Advertisement -

RIV Capital Inc.
CNPOF,
-6.61%
RIV,
-9.68%
on Tuesday reported a second-quarter loss of $141.9 million, or 84 cents a share, from a loss of $7.79 million, or a penny a share, in the year-ago quarter. Revenue increased to just under $2 million from zero revenue in the year-ago period. The latest quarter included a non-cash, goodwill impairment charge of $138.9 million related to its acquisition of New York-based cannabis company Etain, which it expects to close before the end of the year. RIV Capital, which was formerly called Canopy Rivers when it was part of Canopy Growth Corp.
CGC,
-7.10%,
ended the quarter with $165 million in cash for its Etain investment and other potential M&A deals. Scotts Miracle-Gro Co.
SMG,
-3.73%
-backed RIV Capital Inc. in March agreed to pay about $247 million to acquire Etain LLC and Etain IP LLC, the New York cannabis market’s only women-owned and operated business and one of 10 approved vertically integrated operators in the state. OTC shares of RIV Capital are down 81% in 2022, compared to a loss of 56.8% by the AdvisorShares Pure U.S. Cannabis ETF
MSOS,
-2.39%
and a 29.4% drop by the Nasdaq
COMP,
-1.58%.

Credit: marketwatch.com

RELATED ARTICLES
- Advertisment -

Most Popular