RIV Capital Reports YoY Increase In Q1 Revenue, Gross Profit Ahead Of Merger With Cansortium To Create Four-State Cannabis Company

Author: Jelena Martinovic | May 31, 2024 11:30am

Cannabis-focused acquisition and investment firm RIV Capital Inc. (CSE:RIV) (OTC:CNPOF) released its financial results on Thursday for the first quarter ended March 31, 2024.

Mike Totzke, the company's COO and interim CEO, called the first quarter "pivotal" referring to the official launch of the company's recreational cannabis operations in New York. The company opened its first adult-use dispensary in White Plains.

"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," Totzke said. "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.”

The first quarter earnings announcement comes on the heels of the announced merger of RIV Capital and Cansortium Inc., a multi-state cannabis operator under the FLUENT brand. The combined company will operate in Florida, New York, Texas, and Pennsylvania, covering 25% of the U.S. population with eight cultivation and processing facilities and 42 retail dispensaries.

As yet another earnings reporting season wraps up it is important to understand what these figures mean for the future of the industry. Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

Q1 2024 Financial Highlights

Net revenue was $2.1 million, compared to $1.7 million for the same period of 2023.
Gross profit was $613 000, up from $212 000 in the first quarter of last year.
The cost of goods sold was $1.9 million, compared to $1.6 million for the first quarter of last year.
Selling, general, and administrative expenses were $6.2 million for the period, compared to $5.3 million in the prior year's period.
Operating loss was $5.6 million, up from $5.1 million in the corresponding period of 2023.
Net loss was roughly $5 million, down from $23.6 million in the first quarter of the prior year.