RIV Capital Partners With Cannabis Wholesale Platform Nabis To Boost New York Distribution

Benzinga · 10/17 13:37

RIV Capital Inc. (CSE:RIV) (OTC:CNPOF) announced a distribution partnership agreement Wednesday with cannabis wholesale platform Siban Holdings, Inc. (“Nabis”). Under the agreement, Nabis’s technology and expertise will facilitate distribution for the company’s branded products to licensed retailers across New York.

“As we bring in exciting new brands like MOODS and the market here expands, we are thrilled to begin our partnership with Nabis to help broaden our reach in New York,” stated Dave Vautrin, chief retail officer and interim chief executive officer of RIV Capital. “This agreement will allow us to achieve efficiencies within our expense profile and remove unnecessary complexity from our organization while opening up new opportunities to sell our premium, high-quality branded products to both medical patients and adult-use consumers alike in New York.”

The partnership leverages Nabis’s experience in servicing over 300 brands nationwide with professional data analytics, financing, sales and marketing services. RIV expects to substantially expand its wholesale network and offer an enhanced product portfolio to a rapidly growing number of dispensaries and delivery businesses across New York.

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New York's Cannabis Market Growth

The agreement follows recent approval from the New York Cannabis Control Board for the merger between RIV Capital and Cansortium (OTCQB:CNTMF). 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.

The legal New York cannabis market has improved significantly as action by state authorities have cracked down on illicit market activities and expanded the legal market. The New York State Cannabis Advisory Board recently reported that Q3 2024 total adult-use sales reached $250 million, representing 54% sequential growth and an increase of 357% from a year earlier.

Vince C. Ning, co-founder and CEO of Nabis, commented, “We are excited to be supporting RIV Capital and to be working alongside Dave Vautrin again. I witnessed first-hand Dave’s strong leadership as friendly former competitors in California when he ran California’s largest distribution business, Continuum by Origin House, before it was sold to Cresco and returned to his native state of New York. The RIV Capital team’s desire to focus on their core expertise in cultivation and retail, and entrusting Nabis’ technology platform for wholesaling, is a testament to their deep experience and foresight in understanding the requirements to scale their burgeoning wholesale business.”

CNPOF Price Action

RIV Capital shares closed Wednesday's market session flat at $0.14 per share.

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