Toronto-based RIV Capital is set to acquire New York’s Etain, a vertically-integrated operator that started in 2015 as one of the state’s original five medical cannabis licensees. The acquisition marks the start of RIV Capital’s formal entry into the US market, first expanding into adult-use operations in the Empire State. The deal gives ownership and control of Etain companies for about $247 million USD, which will be paid out with a combination of cash and Class A common shares of RIV capital following regulatory approval.
RIV Capital’s Board of Directors named Mark Sims as the president and CEO of RIV Capital. Sims will retain his current role as a director of RIV Capital as well, which came after his time as Senior Vice President of Strategy and M&A for Miracle-Gro. Sims replaces Narbé Alexandrian, who is leaving the company to pursue other opportunities.
Founded by members of the Peckham family, Etain was New York’s only women-owned and operated cannabis business. It’s one of 10 approved vertically-integrated operators and runs four dispensaries across the state in Manhattan, Kingston, Syracuse, and Westchester.
Etain’s COO Hillary Peckham said the family will be stepping back from control of the company while maintaining an active partnership with RIV Capital to preserve the brand’s ethos. “RIV Capital clearly recognized the potential for women-led brands to flourish in the cannabis industry, and we are proud that our work at Etain has led us to this point in time.” It remains to be seen who will step into leadership roles when the Peckhams step back.
RIV Capital will invest additional capital and resources into four new dispensaries and the construction of a new flagship indoor facility for the New York market.