TORONTO, March 30, 2022 /PRNewswire/ – RIV Capital, Inc.
Mr. Sims is a current director of RIV Capital, a role he will retain, and most recently was Senior Vice President of Strategy and M&A for The Scotts Miracle-Gro Company , where he also previously served as its CIO and head of business transformation.
Mark has deep experience in successfully building out teams and infrastructure in complex businesses and has extensive M&A experience from his prior roles at Scotts Miracle-Gro.
Etain, the New York cannabis market’s only women-owned and -operated business, is one of the state’s original five medical cannabis licence recipients and one of only 10 approved vertically integrated operators.
This agreement marks the most significant transaction for a women-owned business in cannabis history.
The acquisition is structured to close in two stages — the initial closing is expected to occur in the second calendar quarter of 2022 and, subject to receipt of the relevant approvals by the New York state regulators, the final closing is expected to occur in the second half of 2022.
In addition, no later than RIV Capital’s upcoming annual general meeting of shareholders, expected to be held in the third calendar quarter of 2022, the former owners of Etain will be entitled to require that RIV Capital nominate a proposed member to the RIV Capital Board of Directors, expected to be Amy Peckham, Etain’s CEO.
Furthermore, to provide RIV Capital with additional financing support for the acquisition, The Hawthorne Collective has agreed to advance RIV Capital US$25 million at the time of the initial closing pursuant to rights existing under The Hawthorne Collective’s previous convertible note investment in RIV Capital, to be evidenced by a newly issued convertible note with a conversion price of C$1.65 per Class A common share of RIV Capital.
Just as importantly, it will establish an important foundation upon which The Hawthorne Collective and, therefore, ScottsMiracle-Gro, can participate in the larger marketplace as the legal and regulatory environment evolves.
Dickinson Wright PLLC, Paul Hastings LLP, and Blake, Cassels & Graydon LLP served as legal counsel to RIV Capital.
RIV Capital also has a strategic relationship with The Hawthorne Collective, a wholly owned subsidiary of The Scotts Miracle-Gro Company, pursuant to which RIV Capital is The Hawthorne Collective’s preferred vehicle for investments not under the purview of other ScottsMiracle-Go subsidiaries.