MARYSVILLE, Ohio, May 30, 2024 (GLOBE NEWSWIRE) -- 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-Gro
With 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 DeLuca
Sr. Vice President
Investor Relations
aimee.deluca@scotts.com
(937) 578-5621
For media inquiries:
Tom Matthews
Chief Communications Officer
tom.matthews@scotts.com
(937) 644-7044
