Cannabis-Focused RIV Capital Reports Q4 And Fiscal Year 2021 Results, Closes Deal With Canopy Growth
Cannabis-focused investment and acquisition company, RIV Capital Inc.
With a portfolio of 12 cannabis companies, the Toronto-based company reported a strong balance sheet, with roughly CA$335.4 million in total assets.
In February, RIV Capital closed its previously announced deal with Canopy Growth Corporation (TSX:WEED) (NASDAQ:CGC) to dispose of certain financial assets it held in TerrAscend Corp.(CSE:TER) (OTCQX:TRSSF), TerrAscend Canada Inc., The Tweed Tree Lot Inc., and Les Serres Vert Cannabis Inc.
In return, the company received $118.4 million in cash, roughly 3.65 million common shares of Canopy Growth and the cancellation of multiple voting shares and subordinated voting shares of the company that Canopy Growth held.
"This transaction returned several multiples on invested capital and provided us with the strategic flexibility needed to pivot our business model," Narbé Alexandrian, president and CEO of RIV Capital, said.
In March, the company's 49%-owned joint venture in Ontario – PharmHouse Inc. – opted to sell its greenhouse facility alongside certain equipment. Once the Ontario Superior Court of Justice approved the PharmHouse Sale, RIV Capital paid $25 million to the lender of PharmHouse's $90.0 million non-revolving syndicated credit facility. Following the closing of the PharmHouse sale, the company paid an additional $7.5 million to the lenders to satisfy its obligations under the PharmHouse credit facility.
"With the CGC Transaction complete and the PharmHouse Credit Facility fully settled, our rejuvenated balance sheet puts us in an advantageous position to capitalize on the growing momentum in the U.S. cannabis market," Eddie Lucarelli, CFO of RIV Capital, disclosed.
Q4 and Full-Year 2021 Summary
- Operating income, before equity method investees and fair value changes, amounted to CA$748 000 in the fourth quarter, compared to roughly CA$2.6 million in the same quarter of 2020.
- For the 2021 fiscal year, operating income, before equity method investees and fair value changes, equaled to CA$618 000, down by 95% year-over-year.
- Operating expenses for the last three months of fiscal 2021 totaled CA$ 7.9 million, versus CA$3.5 million in the corresponding period of the previous year.
- Operating expenses for fiscal 2021 amounted to CA$15.5 million.
- Net loss in the quarter ended March 31 was CA$21.5 million, representing a 43% year-over-year decline.
- Net loss for fiscal 2021 totaled CA$134 million.
- Photo by Tim Foster on Unsplash
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