RIV Capital Fiscal Update and Strategic Developments

NEW YORK- RIV Capital Inc. an investment and acquisition firm, today reported its financial outcomes for the fiscal quarter and the nine-month period ending December 31, 2023. This period marks a transition following the adjustment of the company’s fiscal year end from March 31 to December 31. Comprehensive details about this fiscal change are documented in the company’s public filings on SEDAR+.

Financial Performance Overview

The firm declared a revenue of $2.1 million for the quarter ending December 31, 2023, slightly up from $1.9 million in the corresponding period of the previous year. Despite a rise in revenues, the cost of goods sold also increased, contributing to a net gross loss of $574,000 for the quarter. The period was notably impacted by a significant impairment charge of $48.65 million related to goodwill and intangible assets, primarily due to slower market growth and competition from the illicit market.

Operational Highlights

A significant operational milestone was achieved with Etain, a subsidiary of RIV Capital, receiving approval from the New York Cannabis Control Board to transition to an adult-use cannabis license. This approval has allowed Etain to commence retail and wholesale operations for adult-use cannabis, beginning with its first co-located dispensary in White Plains, New York, which has reported over 7,500 transactions in March alone.

Market and Regulatory Developments

The regulatory landscape in New York has evolved with simplifications made to the tax structure, significantly reducing the burden on cannabis cultivators, processors, and distributors by replacing the THC potency tax with a more straightforward excise tax. This change is set to take effect on June 1, 2024, and is expected to enhance the operating cash flow of the company.

Strategic and Growth Initiatives

RIV Capital continues to focus on leveraging its strategic position in New York to expand its footprint and explore new opportunities. The company’s Strategic Growth Committee is actively assessing potential initiatives to maximize asset value and create shareholder returns.

This announcement encapsulates RIV Capital’s commitment to navigating through regulatory changes and market challenges, aiming to bolster its position in the cannabis industry and deliver sustainable growth.