RIV Capital Strengthens Senior Leadership Team Ahead of Anticipated Transformational Merger with Cansortium Inc.
Appoints Experienced New York and California Cannabis Executive, David Vautrin as Chief Retail Officer to Lead Retail Platform
TORONTO, June 25, 2024 /CNW/ - RIV Capital Inc. ("RIV Capital" or the "Company") (CSE: RIV) (OTC: CNPOF), 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, and Cansortium Inc. (CSE: TIUM.U) (OTCQB: CNTMF) ("Cansortium"), a vertically integrated, multi-state cannabis company operating under the FLUENT™ brand, today announced the appointment of David Vautrin as Chief Retail Officer ("CRO") of RIV Capital, effective June 18th, 2024. David will initially oversee retail and wholesale operations in New York, ahead of the anticipated completion of the previously announced business combination with Cansortium, upon which time it is expected that he will assume responsibility for the combined company's retail footprint.
A seasoned CPG professional with deep cannabis experience, David joined Harbour Community as an investor and active Operating Partner in New York in 2022. Over the following 18 months, Harbour and its license partners secured licenses, locations, developed the Travel Agency branding, and opened three prime retail locations including Union Square, Downtown Brooklyn and, most recently, Fifth Avenue. Prior to this, Mr. Vautrin was instrumental in launching CannaRoyalty, which operated in California as Origin House. Origin House was a vertically integrated operator, which included cultivation, extraction, processing, manufacturing, and distribution of 50+ third party and owned brands to over 500 dispensaries in California, which was acquired by Cresco Labs in 2020.
"David is one of the most respected cannabis professionals in New York state," said Mike Totzke, COO and interim CEO of RIV Capital. "We are thrilled to benefit from his unique coast-to-coast experience and deep expertise in brand building, retail operations and wholesale distribution. David will lead our New York retail operations and support wholesale relationships in the state, a pivotal role as our adult-use operations expand, and we prepare for the anticipated opening of two additional adult-use retail locations later this year. We started 2024 strongly with the successful launch of our first co-located adult-use and medical retail store in White Plains and this proved to be the right time and right opportunity to take our next step into becoming an established multi-state operator through our agreement with Cansortium. Together we will operate in several key states which have yet to fully realize their market potential, and the addition of David significantly bolsters our talented executive team as we leverage this strategic operating footprint to become one of the leading cannabis operators in the country."
"I am incredibly proud to be joining the RIV team at this transformative moment in the Company's history," said David Vautrin, CRO of RIV Capital. "With their roots and commitment to New York the launch of their adult-use operations was a tremendous achievement. I share their belief that the New York market will grow into one of the most exciting in the country, and we've only just begun to unlock its potential. With several key developments on the horizon and the upcoming transaction with Cansortium, I believe this will be a thrilling year for the Company and I am excited to be a part of the journey."
About Cansortium
Cansortium is a vertically-integrated cannabis company with licenses and operations in Florida, Pennsylvania and Texas. The Company operates under the FLUENT™ brand and is dedicated to being one of the highest quality cannabis companies for the communities it serves. This is driven by Cansortium's unrelenting commitment to operational excellence in cultivation, production, distribution and retail. The Company is headquartered in Tampa, Florida. For more information about the Company, please visit www.getFLUENT.com.
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 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 and its 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 with respect to the timing and outcome of the Company's proposed business combination with Cansortium Inc., including the anticipated closing of the combination, and the anticipated benefits to be derived therefrom; the Company's expectations regarding the U.S. cannabis market; the Company's plans to open two additional adult-use medical dispensaries in New York; the Company's expectations regarding the growth of Etain's wholesale business; the potential rescheduling of cannabis under the CSA; the potential effects of the rescheduling, including the removal of 280E taxes, increased federal legalization momentum, and expanded institutional access to invest in the cannabis sector; the potential transformation of the cannabis industry as a result of the reclassification of cannabis; expectations regarding the impact of regulatory tax changes to the Company's operating cash flows; expectations regarding the increased enforcement efforts and penalties in New York for illicit cannabis operations; 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; 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 MD&A filed with the Canadian securities regulators and available on RIV Capital's profile on SEDAR+ at www.sedarplus.com.
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.
SOURCE RIV Capital Inc.
For further information: Investor Relations Contact for Cansortium Inc.: [email protected], Media Contact: [email protected]; Investor Relations contact for RIV Capital: [email protected], Media contact: [email protected], Officer contact for RIV Capital: Matt Mundy, 416-583-5945
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