Another acquisition announcement in the lucrative California cannabis market brings a fully licensed distributor under Ottawa-based pot investment firm CannaRoyalty’s umbrella.
The firm announced Tuesday that it has acquired California’s River Distribution (RVR). The acquired firm has two cannabis production facilities in the state with a licence to distribute for both medical and recreational use.
CannaRoyalty, which acts as an investment vehicle for investors seeking legal exposure to North American cannabis markets, said in a release that River Distribution supplies a number of leading California brands. Revenues for the firm were US$25.4 million in fiscal 2017.
On Tuesday the Ottawa company also closed two previously announced acquisitions in the California market, Alta Supply and Kaya Management. CEO Mark Lustig said in a statement that the two firms, which manufacture and distribute cannabis products and vaporizers, will blend well with CannaRoyalty’s latest acquisition.
“We are confident that the consolidation of RVR with Alta Supply will position us as a leader in the world's largest regulated cannabis distribution system, in California,” he said.
CannaRoyalty announced two weeks ago that it would raise $15 million to finance more acquisitions like these. Lustig told OBJ then that a focus on the California market will pay off for the firm as it races to take advantage of the increasingly legalized – and valuable – cannabis industry in North America.
CannaRoyalty expects the River Distribution acquisition to close by mid-2018.
The local firm was slated to report its fourth-quarter earnings on Thursday, but rescheduled the release of its financial data to April 4.