Riv Capital Settles PharmHouse Guarantee With Final $7.5 Million Payment

It appears that Riv Capital (TSX: RIV) is almost out of the woods on certain debt it guaranteed for PharmHouse Inc, a failed Canadian cannabis cultivator. The firm announced this morning that PharmHouse has closed the sale of its greenhouse facility under an asset purchase agreement entered with a related party of Sensei Ag Holdings.

Following the sale of the facility, PharmHouse has sent the funds to the lenders as it works to satisfy certain outstanding debts. Riv Capital then sent an additional $7.5 million in cash to the lenders, which when combined with a $25.0 million payment made in March by Riv, is expected to fully fund the remainder of the debt obligation due on the PharmHouse loan.

The result, is that after covering the loan to the tune of $32.5 million, Riv Capital is believed to now be discharged of its debts related to PharmHouse, with no more related liability remaining. PharmHouse is now expected to proceed with its bankruptcy proceedings.

Riv Capital is now said to be entirely focused on the US market, having exited its positions related to Canadian cannabis assets.

Riv Capital last traded at $1.76 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Scotts Miracle-Gro Takes Run At US Cannabis Market Via US$150 Million Investment In RIV Capital

It appears that The Scotts Micro-Gro Company (NYSE: SMG) is looking to take a run...

Tuesday, August 10, 2021, 07:49:48 AM

Scotts Miracle-Gro Looks To Raise US$400 Million From 4.375% Senior Notes Offering

The Scotts Miracle-Gro Company (NYSE: SMG) on Tuesday announced its plans to offer 4.375% senior...

Wednesday, August 11, 2021, 10:34:00 AM

Scotts Miracle-Gro Subsidiary Sues TerrAscend’s Jason Wild For Violating Federal Law

The Scotts Miracle-Gro Company (NYSE: SMG) subsidiary Hawthorne has sued cannabis operator TerrAscend Corp (CSE:...

Wednesday, February 8, 2023, 02:16:00 PM