Successfully opened first adult-use dispensary in White Plains, New York Ended the quarter with $65.9 million of cash to support growth strategy in New York and other initiatives in connection with proposed business combination with Cansortium Inc. TORONTO, May 30, 2024 /CNW/ - RIV Capital Inc. ("RIV Capital" or the "Company") (CSE:RIV) (OTC:CNPOF), an acquisition and investment firm with a focus on building a leading multistate platform with one of the strongest portfolios of brands in key strategic U.S. markets, today released its financial results for the first quarter ended March 31, 2024 ("Q1 2024"). All financial information in this press release is reported in U.S. dollars unless otherwise indicated. Management Commentary "The first quarter of 2024 was pivotal with the official launch of our adult-use operations in New York," said Mike Totzke, COO and interim CEO of RIV Capital. "Following years of hard work, we are incredibly proud of our entire team for their dedication, which enabled us to take this transformative step forward. The growth we have seen at our newly launched White Plains dispensary is well in line with our expectations and customer feedback has been fantastic."   Mr. Totzke added, "Furthermore, we believe that our proposed business combination with Cansortium, a sophisticated and experienced operator with a coveted geographical footprint, is a game-changer for us that opens up unprecedented opportunities. Combined with the anticipated opening of two additional adult-use retail locations in New York later this year and continuing to grow our wholesale business, we are extremely excited about what 2024 has in store for our Company." Regulatory Update The Company is also pleased to note that several positive changes have been made to the existing tax structure for cannabis operators in New York state. This has reduced the tax collection obligations and burden for cultivators, processors, and distributors by repealing the wholesale THC potency tax and replacing it with a wholesale distribution tax of 9%. The excise tax on medical cannabis has also been reduced from 7% to 3.15%. The state has accelerated its efforts to combat the ongoing illicit market activities as well. This increased commitment includes authorizing the Office of Cannabis Management ("OCM") and authorities from counties and cities, including New York City, to padlock businesses immediately following an inspection if they are selling illicit cannabis and pose an imminent threat to health and safety. Illicit operators will also face a broader swathe of potential penalties, including the potential loss of alcohol, tobacco, and lottery licenses, and landlords who knowingly aid or permit illicit market activity will face stricter fines and penalties than in the past. Plans have also been announced for an overhaul of the OCM's organizational structure, processes, and systems, and the Company will continue to work closely with the agency and maintain its strong relationship with all New York stakeholders. On a federal level, the U.S. Drug Enforcement Agency has accepted the Department of Health and Human Services' recommendation to reschedule cannabis from a Schedule I to a Schedule III substance under the Controlled Substances Act (the "CSA"). The rescheduling of cannabis under the CSA is anticipated to lead to the removal of 280E taxes and provide support for further potential federal reform. Additionally, this change has the potential to expand institutional access to invest in the cannabis sector and accelerate opportunities for research into the medical benefits of cannabis. Financial Results for the First Quarter Ended March 31, 2024 The following is a summary of the Company's unaudited financial results for Q1 2024 and the three-month period ended March 31, 2023 (first calendar quarter of 2023 or "CQ1 2023"). As previously announced, the Company has changed its fiscal year end from March 31 to December 31. Accordingly, the comparative period presented for the three months ended March 31, 2023, has not previously been reported in historical unaudited condensed interim consolidated financial statements published by the Company. Further details regarding the change in fiscal year end, including the length and ending dates of the Company's financial reporting periods, are available in the Company's Notice of Change in Year End prepared in accordance with Section 4.8 of National Instrument 48-102 and filed on the Company's SEDAR+ profile at www.sedarplus.com. Unless otherwise indicated, all financial highlights summarized in tables in this press release are presented in thousands of dollars, except share and per share amounts. All references to "$" are to United States dollars. Summary Operating Results Three monthsended Mar. 31, 2024 (unaudited) Three monthsended Mar. 31, 2023 (unaudited) Revenue, net $ 2,138 $ 1,728 Cost of goods sold 1,889 1,596 Gross profit excluding fair value items 249 132 Unrealized gain on changes in fair value of biological ...