RIV Capital’s Revenue Doubles Amid New York Cannabis Market Expansion

LOS ANGELES- RIV Capital Inc. reported a significant increase in net revenue for the third quarter ending September 30, 2024, achieving $4.9 million—a 28% rise from the previous quarter and a 186% surge compared to the same period in 2023.

The company’s retail operations contributed $3.4 million, up from $1.5 million in the corresponding quarter of the prior year. This growth is attributed to the commencement of adult-use cannabis sales at its dispensaries in Kingston and Manhattan in mid-September. Wholesale revenue also increased to $1.6 million from $0.3 million, reflecting the company’s transition into New York’s adult-use market.

Despite the revenue growth, RIV Capital reported a net loss of $63.4 million, primarily due to a $67.4 million non-cash pre-tax impairment charge on intangible assets, including cannabis license rights and brands acquired during the Etain acquisition in April 2022.

The company anticipates completing its previously announced business combination with Cansortium Inc., a vertically integrated, multi-state cannabis operator under the FLUENT brand, in the coming weeks. This merger is expected to enhance RIV Capital’s presence in key U.S. markets. As of September 30, 2024, RIV Capital held $50.7 million in cash, positioning the company to support growth initiatives in New York and Florida