Major Cannabis Merger Approved In New York: Can Weed Stock Investors Take Advantage?

Zinger Key Points
  • With adult-use cannabis sales now in full swing, New York has quickly become a battleground for companies looking to expand their share.
  • For cannabis investors, this merger signals a unique opportunity to gain exposure to a rapidly expanding market.

RIV Capital Inc. RIV CNPOF and Cansortium Inc. TIUM CNTMF have secured approval from the New York Cannabis Control Board for their upcoming merger, marking a major consolidation in the state's fast-growing cannabis industry.

The merger, expected to close by the end of 2024, positions the combined company to take full advantage of covering 25% of the U.S. population with eight cultivation and processing facilities and 42 retail dispensaries.

“We are thrilled to have received regulatory approval in New York to move forward with our business combination transaction, bringing us closer to completing this important step for both of our companies in the fourth quarter of 2024,” said Robert Beasley, CEO of Cansortium, in a press release Thursday afternoon.

  • Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can’t afford to miss out if you're serious about the business.

New York's Cannabis Boom

With adult-use cannabis sales now in full swing, New York has quickly become a battleground for companies looking to expand their market share. RIV Capital, which operates three retail locations in the state, has seen rapid growth in both its consumer-facing and wholesale businesses since adult-use sales began earlier this year.

Cansortium, a vertically integrated company operating under the FLUENT™ brand, brings significant expertise from other key markets, including Florida, Pennsylvania, and Texas.

Read Also: EXCLUSIVE: 80% Growth Despite The Chaos: How Dutchie, C3 Defy 2024’s Cannabis Slump

What This Means For Investors

For cannabis investors, this merger signals a unique opportunity to gain exposure to a rapidly expanding market. RIV Capital's partnership with The Hawthorne Collective, a subsidiary of ScottsMiracle-Gro SMG, further strengthens its position in the cannabis supply chain. Meanwhile, Cansortium's operational expertise in cultivation, production and retail will likely drive significant value for shareholders.

Closing Timeline And Further Details

  • The merger between RIV Capital and Cansortium is expected to close by the fourth quarter of 2024, pending final closing conditions.
  • Upon completion, Cansortium’s shares will continue trading on the Canadian Securities Exchange under the symbol ‘TIUM.U’ and on the OTCQB Venture Market under ‘CNTMF.’
  • Further details, including the principal closing conditions, can be found in RIV Capital’s management information circular dated July 12, 2024.

Read Next: Tilray Reports $200M Q1 Net Revenue, Up 13% YoY As Net Loss Improves

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.