ScottsMiracle-Gro Poised to Advance Cannabis Strategy in New York, Florida and other states
30 Mai 2024 - 4:29PM
The Scotts Miracle-Gro Company (NYSE: SMG) announced its support
for the planned combination of RIV Capital and Cansortium, stating
the move will enhance its strategic stake in cannabis cultivation
and retail operations in important high-growth states.
“The combination of these
two companies is a transformative step in the strategy we initiated
in 2021 when we first invested in RIV Capital,” said Jim Hagedorn,
chairman, CEO and president of ScottsMiracle-Gro. “Despite delays
with adult-use implementation in New York, RIV Capital has become a
legitimate player in the state’s medical and recreational cannabis
market. Cansortium, meanwhile, is a proven operator with licenses
in Florida, Texas, Pennsylvania and Alabama. Together, they will
have the financial means and strong operating team to expand in
four of the five most populous states, leading to value-creation
opportunities for RIV and Cansortium shareholders as well as our
ScottsMiracle-Gro investment.”
RIV Capital (CSE: RIV)
(OTC: CNPOF) and Cansortium (CSE: TIUM.U) (OTCQB: CNTMF) announced
today that they have agreed to combine and move forward as
Cansortium. Through its subsidiary, The Hawthorne Collective,
ScottsMiracle-Gro previously invested $175 million in unsecured
convertible notes in RIV Capital. Upon approval of the RIV Capital
and Cansortium deal by regulators and shareholders later this year,
The Hawthorne Collective will exchange the RIV notes for non-voting
exchangeable shares of Cansortium. These shares can be converted
into common shares of Cansortium at The Hawthorne Collective’s
discretion.
As the largest investor
in RIV, ScottsMiracle-Gro sought to provide RIV with a strong
balance sheet to secure a New York state license and gain a
foothold in the existing medical market while capitalizing on
legalization of adult use.
“We’re pleased with RIV’s
accomplishments in New York, as it has built out cultivation
operations and opened a flagship White Plains dispensary that is
exceeding expectations,” said Chris Hagedorn, president of The
Hawthorne Collective and division president at
ScottsMiracle-Gro.
“Cansortium’s
sophisticated operating model can accelerate expansion in New York,
while RIV’s cash position can fund growth in Florida, where adult
use is on the November ballot. Longer term, we expect the combined
Cansortium business to aggressively pursue M&A aimed at
geographic expansion and the creation of a portfolio that includes
the best cannabis brands with the highest consumer demand.”
About ScottsMiracle-GroWith
approximately $3.6 billion in sales, the Company is the world’s
largest marketer of branded consumer products for lawn and garden
care. The Company’s brands are among the most recognized in the
industry. The Company’s Scotts®, Miracle-Gro®, and Ortho® brands
are market-leading in their categories. The Company’s wholly-owned
subsidiary, The Hawthorne Gardening Company, is a leading provider
of nutrients, lighting and other materials used in the indoor and
hydroponic growing segment. For additional information, visit us at
www.scottsmiraclegro.com.
For investor
inquiries:Aimee DeLucaSr. Vice
PresidentInvestor
Relationsaimee.deluca@scotts.com(937)
578-5621
For media inquiries:Tom
MatthewsChief Communications
Officertom.matthews@scotts.com(937)
644-7044
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