Investor Ideas #Potcasts 608, #Cannabis News and #Stocks on the Move; Interview with President and CEO of RIV Capital (CSE: $RIV.C) (OTC: $CNPOF)
Delta, Kelowna, BC, October 22, 2021 (Investorideas.com Newswire) www.Investoride, as.com, a global news source covering leading sectors including marijuana and hemp stocks and its potcast site, www.potcasts.ca release today’s podcast edition of cannabis news and stocks to watch plus insight from thought leaders and experts.
Listen to the podcast:
https://www.investorideas.com/Audio/Podcasts/2021/102221-StocksToWatch.mp3
Read this in full at https://www.investorideas.com/news/2021/cannabis-potcasts/10221RIV-CNPOF.asp
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Today’s podcast overview/transcript:
Good afternoon and welcome to another episode of Investorideas.com "Potcast" featuring cannabis news, stocks to watch as well as insights from thought leaders and experts.
In today’s podcast Investorideas interviews Narbe Alexandrian, President and CEO of RIV Capital Inc. (CSE: RIV) (OTC: CNPOF), where we discussed the companyès transition from Canopy Rivers Inc. to RIV Capital, the companyès recent news and investments as well as the investment opportunities being noticed right now in the US cannabis space.
Discussing how Canopy Rivers transitioned into RIV Capital, Narbe Alexandrian commented, “RIV Captial started as Canopy Rivers back in 2017, and at the time we were the venture capital arm of Canopy Growth. By late 2017 we spun off to become our own entity but we were still controlled by Canopy Growth through multiple voting shares. I joined the company the summer of 2018 and we took the company public in the fall of 2018. BY January of 2019 I was promoted to President and then CEO by May of 2019. Fast forwarding to that May of 2019, where in my new role, everything I was seeing was pointing towards the US market. The market is huge, it’s underserved, there is still a lot of stigma attached to what you can do there.So I was trying everything I could to get more US exposure before anybody was really talking about US exposure. However at the time we weren’t able to go there because of Canopy Grwoth’s ties to the US legalization issues in the US. Over the next 18 months we worked to really clean up shop by unwinding deals and structures that were made while working on a deal to get us to the US market.”
Alexandrian continued, “In December 2020, and we closed this in February of 2021, we sold the interest in three of our portfolio companies for, at closing it was 380 million CAD, part of that was cash and part of that was Canopy Growth shares. We used a portion of that to buy out Canopy GFrowth’s position and another part of that to pay off a liability that I inherited from my predecessors. So with a chunk of cash and no control over us, we could finally get to the US market. AS we were looking at different acquisitions and investments, Scotts Miracle Gro reached out to us and that lead to the strategic investment they made on their end.”
The Hawthorne Collective, Inc., a cannabis-focused subsidiary of The Scotts Miracle-Gro Company (NYSE: SMG) purchased an unsecured convertible note from RIV Capital for US$150 million back in August of 2021.
“The closing of the investment from The Hawthorne Collective comes at a key moment for RIV Capital,” said Narbé Alexandrian, President and CEO, RIV Capital. “The ongoing uncertainty around the status of U.S. federal cannabis legalization continues to sideline significant amounts of capital, creating attractive acquisition opportunities in strategic markets. We believe we are well-positioned to capitalize on these opportunities, given our strong balance sheet and acquisition currency, and develop our operating and brand platform.”
Alexandrian went on to discuss where he is seeing the largest opportunities in the US, mentioning the advantages of limited license States as well as R & D potential.
When asked about the continued risk in the US, Alexandrian commented, “I think the biggest risk is regulatory risk. As an example, right now New York has 10 vertically integrated licenses that have been given out. These licenses give anybody the ability to cultivate, extract, process and manufacture as well as create their own dispensaries to sell their product. Each one of these licenses is worth a lof money. But what happens when the government comes in and says, hey we did 10 and now we are going to make it into 100, what happens to the value of these original 10 licenses? So whenever we look at these businesses, even though they are in a state with limited licenses where you're going to reap the benefits for maybe 3 or 4 years, we stress test these companies and say, what does it look like if things change and you look more like California than New York and can you survive and can you pivot?”
Narbe Alexandrian went on to discuss some of the other potential areas of investment within the US space, how things have changed over the last two years, how things are expected to continue to develop, realistic expectations for federal cannabis reform within the US as well as potential risks and benefits of a far off globalized cannabis industry.
To find out more information about RIV Capital, click the link here.
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