Florida-based Cansortium Inc. (CSE: TIUM.U) (OTCQB: CNTMF) and New York-based RIV Capital (CSE: RIV) (OTC: CNPOF) will merge forces into a single new cannabis company, with the blessing of RIV stakeholder Scotts Miracle-Gro (NYSE: SMG), the trio of companies announced Thursday.
Once the deal closes, the newly formed multistate operator will have a cannabis industry footprint in four major markets – Florida, New York, Texas, and Pennsylvania – with a total of eight cultivation and processing facilities and 42 dispensaries.
The deal is a win-win-win for the trio of businesses, according to the announcement, with the merger expected to close by the fourth quarter of this year. The respective boards of directors at Cansortium and RIV Capital both unanimously approved the merger.
The new company is expected to deliver between $5 million and $10 million annually in cost savings through combined efficiencies with the new company’s supply chain, which will be a boon to all three businesses, given that they’ve all posted significant losses in recent quarters: Cansortium lost $22.8 million last year, while RIV Capital lost $47 million in the final three months of 2023 alone, and Scotts Miracle-Gro’s subsidiary, the Hawthorne Collective Inc., has seen cannabis-related sales plummet by
