Etain received New York Cannabis Control Board approval to commence adult-use operations in New York Ended the year with $81.9 million of cash to support operationalization of New York market and growth initiatives Reported net loss of $47.3 million for the quarter, primarily related to a non-cash pre-tax impairment charge on goodwill and intangible assets of $48.7 million Subsequent to period end, Etain opened first co-located adult-use and medical dispensary in White Plains, New York  TORONTO, April 29, 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 three months and nine-month transition period ended December 31, 2023. As previously announced, due to a change in the Company's fiscal year end from March 31st to December 31st, the Company's most recent fiscal year was comprised of three quarters for a total of nine months, which began on April 1, 2023, and ended on December 31, 2023. 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.ca. All financial information in this press release is reported in U.S. dollars unless otherwise indicated. Management Commentary "During the quarter, RIV achieved a crucial milestone thanks to the years of dedicated efforts of the Etain team in a market we consider to be one of the most promising and significant in the country," said Mike Totzke, COO and interim CEO of RIV Capital. "As one of the inaugural legal operators in New York, Etain has proudly served the state's medical cannabis patients since 2015. We are proud to say that Etain received CCB approval to be one of the first six registered organizations to officially transition to an adult-use license in New York, and Etain has commenced both adult-use retail and wholesale sales. This was a momentous occasion for us, and I am incredibly proud of everything our team has accomplished to bring us here." Mr. Totzke added, "We started 2024 on the right footing following the launch of Etain's adult-use operations in New York. We were thrilled to expand our operating footprint in the state in February with the opening of Etain's first co-located adult-use and medical dispensary in the beautiful White Plains community. With our deep market experience and established reputation for a high-quality dispensary experience, the customer feedback we have received on the new location has been remarkable. This was a landmark accomplishment, and we are excited about the initial success achieved since opening." Eddie Lucarelli, CFO of RIV Capital, added, "As our adult-use rollout begins in New York, we believe we have the balance sheet and capital management discipline necessary to support our growth strategy. We intend to maintain a measured approach to identify strategic opportunities to further expand our operations and grow in line with this emerging market." Strategic and Operational Update New York Adult-Use Retail On December 8, 2023, Etain received approval from the New York Cannabis Control Board (the "CCB") for transition to an adult-use operator. Etain's fully integrated license authorizes cultivation, processing, distribution and dispensing of adult-use and medical cannabis products (an "ROD License") in the state. In connection with this transition, following its fiscal year end, the Company achieved another significant milestone with the opening of Etain's first co-located adult-use and medical dispensary in White Plains, New York. The Etain White Plains dispensary opened in February, following its relocation from Yonkers. Etain White Plains has experienced a profoundly positive customer response since it first opened its doors, processing more than 7,500 transactions in its first full month of operation in March. Etain's ROD License permits opening two additional co-located adult-use and medical dispensaries in the state later this year, which it plans to do.   Marketing and Product Development Etain's ROD License also permits wholesaling to other adult-use and medical dispensaries in New York. Etain continues to add new retail distribution partners and is encouraged by the strong network of adult-use dispensaries opening up across New York. The Company is focused on utilizing the full capabilities of its new operational enhancements, technological improvements, and expanded customer base to identify opportunities to further diversify its product and brand portfolio to best serve its wide-ranging spectrum of customers and patients in the state.   Cultivation and Manufacturing Facility Updates With the recent launch of adult-use operations in New York, the Company has remained focused on supporting its entry into the adult-use market through facility upgrades and expansions. Etain's Chestertown facility completed a significant expansion during 2023, which included approximately 28,800 square feet comprised of eight new hybrid greenhouse bays, as well as new production space to address the anticipated demands of the adult-use market in New York. Following this expansion, the quality and output of the harvests have continued to improve. The Company is in the process of further improving production capacity to support adult-use growth through various initiatives, including new production machinery to enhance operational efficiencies. Also, in 2023, Etain received regulatory approval from the Office of Cannabis Management (the "OCM") for its indoor flagship facility site located in Buffalo, for which construction continues to progress. This facility is expected to more than double Etain's current cultivation capacity with the addition of indoor grow rooms specifically dedicated to growing premium flower. Etain will require additional OCM approval before the commencement of commercial operations at the flagship facility in Buffalo. New York Regulatory Environment New York's regulatory environment has seen some positive changes in recent months as well, including a simplification of the state's burdensome tax structure. In particular, the state's FY2025 budget included a reduction in the tax collection burden for cultivators, processors, and distributors by repealing the complex THC potency tax and replacing it with a distribution excise tax of 9%. In addition, the excise tax on medical cannabis has been reduced from 7% to 3.15%. These changes are effective June 1, 2024, and are expected to have a positive impact on the Company's operating cash flows. The state has also continued to ramp up enforcement efforts in a bid to combat ongoing issues related to the state's illicit cannabis market. These efforts include authorizing the 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 greater penalties, including the potential loss of alcohol, tobacco, and lottery licenses. Additionally, landlords who knowingly aid or permit illicit market activity face fines and penalties. The Company commends state officials for their continual effort toward displacing the illicit New York market, which has created unsafe conditions for patients and consumers and unfavorable market pressure on legal cannabis operators. Strategic Growth Committee The Company's Strategic Growth Committee ("SGC") has continued its work to identify opportunities that it believes will best achieve its strategic goals of unlocking the full value of its New York assets and potentially expanding its geographic footprint to further create value for shareholders.  The SGC looks forward to providing an update on any initiatives at the appropriate time. Financial Results for the Fiscal Quarter and Nine-Month Transition Period Ended December 31, 2023 The following is a summary of the Company's financial results for three months and nine-month transition period ended December 31, 2023, the three months ended December 31, 2022, and fiscal year ended March 31, 2023. As noted above, the Company changed its fiscal year end from March 31st to December 31st. Accordingly, the Company is reporting "fiscal year end" results for the nine-month transition period from April 1, 2023, to December 31, 2023, and, as a result, the comparative figures for the prior fiscal year ended March 31, 2023, are not directly comparable. Furthermore, the comparative operating results ...