RIV Capital To Buy Etain Health As It Bets On New York Becoming Pot...

By Rithika Krishna

March 30 (Reuters) - Investment vehicle RIV Capital will buy pot dispensary Etain Health in a nearly $250 million deal, the companies said on Wednesday, as it bets on the state becoming a top marijuana market in the world.

New York legalized recreational use of marijuana in March last year and is walmart available in philippines [written by 118free] poised to surpass California as the largest legal weed market.
Seventeen other states have legalized recreational marijuana, all in defiance of federal law, which still prohibits its use.

The licenses to open recreational marijuana retail outlets in New York will be issued later this year but Etain and nine other companies that have medical weed licenses in the state are best positioned to gain once the recreational market opens up.

RIV Capital also named Mark Sims as the company's chief executive officer, replacing Narbé Alexandrian, who has stepped down to pursue other opportunities.

Started in 2015, the family-run Etain has four stores in New York, including one in Manhattan. Its products include wellness oils, oral sprays and vape pen.

RIV has the ability to expand the stores to eight, three of which will be for adult use facilities or dispensaries, Sims told Reuters.

"The New York market is prone to be one of the top markets in the country. Things that happen in New York can impact the tri state area as well as the rest of the country from a branding perspective," he added.

RIV, which used to be owned by Canadian pot producer Canopy Growth, will pay Etain $212 million in cash and about $35 million in stock.

After parting ways with Canopy in 2020, RIV received a $150 million investment from gardening company Scotts Miracle-Gro's cannabis arm, which it expects to use to finance the cash portion of the deal.

(Reporting by Rithika Krishna in Bengaluru; Editing by Vinay Dwivedi)

adverts.addToArray({"pos":"inread_player"})Advertisementstapelfelder-openair.de