RIV Capital Inc. announced that PharmHouse Inc. (“PharmHouse“), through its sale and investment solicitation process (the “SISP“), has closed the sale of its greenhouse facility pursuant to its asset purchase agreement with a company related to Sensei Ag Holdings, Inc. (the “PharmHouse Sale“). PharmHouse will use the net proceeds received from the PharmHouse Sale to reduce the amount owing under its syndicated credit facility (the “Credit Facility“) with a group of Canadian bank lenders (the “Lenders“).
Concurrent with the closing of the PharmHouse Sale, RIV Capital has made a cash payment of approximately $7.5 million to the Lenders. This payment, when combined with the net proceeds received from the PharmHouse Sale and the $25.0 million payment made by RIV Capital in March 2021, among other items, is expected to fully satisfy PharmHouse’s obligations under the Credit Facility, which RIV Capital had guaranteed. These payments are in line with the Company’s previous disclosure related to its total liability, and the Company does not anticipate any additional payments in respect of its guarantee of the Credit Facility. As the parties have now been discharged of their obligations in respect of the Credit Facility, any cash available for distribution upon the termination of PharmHouse’s proceedings under the CCAA is expected to be distributed to RIV Capital.
“Over the past few quarters, we have worked tirelessly to mitigate our liability exposure on PharmHouse, ensure that our liability does not exceed our disclosed estimates, and secure a buyer for the facility,” said Narbe Alexandrian, President & CEO, RIV Capital. “With this chapter behind us, our complete focus is on executing on our investment strategy in the U.S. market.”
PharmHouse continues to work through its CCAA proceedings and the Company expects to provide an update on these proceedings in the coming weeks.
About RIV Capital
RIV Capital is an investment and acquisition company specializing in cannabis with a portfolio of 13 companies across various segments of the cannabis value chain. We believe that bringing together people, capital, and ideas raises the potential of the entire cannabis industry. By leveraging our industry insights, in-house expertise, and thesis-driven approach to investing, we aim to provide shareholders with exposure to specialized and disruptive cannabis companies.