Riv Capital Settles With JW Asset Management, Repurchases Almost 20% Of Its Shares

RIV Capital Inc. CNPOF RIV has entered into a settlement agreement that has resulted in JW Asset Management, LLC ("JWAM") consenting to the dismissal of its application related to the company's acquisition of Etain, LLC and Etain IP, LLC.

Under the terms of the settlement agreement, RIV Capital has repurchased for cancellation all RIV capital class A common shares currently owned or controlled by JWAM and its affiliates, amounting to 33.73 million shares, for an aggregate purchase price of $19,63 million. RIV Capital has also reimbursed certain legal expenses incurred by JWAM as part of its application and related matters in the amount of $375,000. RIV Capital funded such amounts with cash on hand. As part of the settlement, JWAM and its affiliated funds have also withdrawn their requisition for a special meeting of the company's shareholders currently scheduled for June 6, 2023, which meeting will be cancelled by the company.

JWAM filed the application against the company in May 2022, soon after RIV Capital acquired ownership and control of Etain, LLC and Etain IP, LLC, owners and operators of legally licensed cannabis cultivation and retail dispensaries in the state of New York. In the application, JWAM sought a remedy requiring the JWAM shares to be repurchased by the company at a price of CA1.65 per share.  

Hawthorne/JWAM Settlement

The Hawthorne Collective, Inc., a subsidiary of the Scotts Miracle-Gro Co SMG has advised the company that the litigation between The Hawthorne Collective, JWAM, Jason Wild and certain related parties of JWAM has been settled. The Hawthorne Collective has advised the company that under the settlement, in return for a withdrawal of the existing litigation and other consideration, Jason Wild and JWAM have agreed, among other things, not to take any action that would interfere with The Hawthorne Collective's agreements with the company, or any rights set forth in those agreements.

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