Combined Company’s footprint will provide access to Florida, New York, Texas, and Pennsylvania, with significant growth potential and future regulatory catalysts in all four states
Combined Company expected to leverage Cansortium’s robust operating expertise as well as RIV Capital’s ~US$66 million1,2 cash balance, strengthening both its operating and financial position
Transaction has the support of ScottsMiracle-Gro, which intends to exchange its existing convertible notes in RIV Capital for a new class of non-voting Exchangeable Shares of Cansortium at closing, eliminating US$175 million3 of debt
TAMPA, Fla. , May 30, 2024 /PRNewswire/ – Cansortium Inc. (CSE: TIUM.U) (OTCQB: CNTMF) (“Cansortium”), a vertically integrated, multi-state cannabis company operating under the FLUENT™ brand, and RIV Capital Inc. (CSE: RIV) (OTC: CNPOF) (“RIV Capital”), a vertically integrated cannabis company operating the EtainTMbrand in New York, are pleased to announce that they have entered into a definitive arrangement agreement (the “Arrangement Agreement”) pursuant to which Cansortium will acquire all of the issued and outstanding Class A common shares (the “RIV Capital Shares”) of RIV Capital in exchange for Cansortium Shares (as defined below) (the “Transaction”).
Under the terms of the Arrangement Agreement, RIV Capital shareholders (the “RIV Capital Shareholders”) will receive 1.245 of a common share of Cansortium (the “Cansortium Shares”) in exchange for
