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.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.