Adam Jackson
RIV Capital Inc. (CSE: RIV) (OTC: CNPOF) posted the results of its fourth quarter and fiscal year ended March 31, 2023. Even with the difficulties facing the New York cannabis market, the company is maintaining an optimistic long-term stance.
RIV reported total revenue of $1.8 million during the quarter, which declined from the third quarters’ revenue of $2 million. The company had an operating loss of $5 million. Riv said that the medical cannabis market in New York has declined due to the proliferation of unlicensed cannabis stores.
Net losses grew from the previous quarter’s $9.9 million to a current loss of $23.6 million. The figure is a notable rise from the fourth quarter of the previous year, which saw a loss of $13.7 million. A significant portion of the loss is linked to a $16 million charge that was settled on Feb. 23.
Looking at the next two years, the company intends to make sizeable investments in New York. However, CFO Eddie Lucarelli is confident about the company’s financial health.
“Even after these cash outlays, the company will remain in a strong financial position to execute on M&A and other investment opportunities,” Lucarelli said in a statement Wednesday.
Interim CEO and COO Mike Totzke admitted to the slower than expected progress in the opening of New York’s adult-use market. Still, Totzke remains positive.
“We remain bullish on this market’s long-term prospects, especially in light of the recently unveiled updated draft regulations that we believe are a much-needed move in the right direction,” Totzke said.
RIV Capital has been making major progress with Etain from an operational perspective. Additionally, RIV Capital is progressing with the development of a new flagship facility in Buffalo, New York.
Looking at the retail angle, the firm is working to expand distribution points. Currently, Etain products are available in 75% of medical dispensaries across New York state.
And despite the fiscal losses, the company is showing a strong year-end liquidity standing of $97.9 million. The fiscal solidity is expected to help RIV Capital make substantial inroads into the New York cannabis market. The company plans to leverage the financial position to secure a significant portion of the market, with an eye on entering the adult-use market later this year.
