After securing a cool $150 million investment from Scotts Miracle-Gro subsidiary the Hawthorne Collective earlier this month, RIV Capital — formerly known as Canopy Rivers before cutting ties with Canopy Growth in February — CEO Narbe Alexandrian tells Insider what they’re planning to do with their $320 million war chest.
Hunting for quality — or deals
Like Tilray’s Irwin Simon, Alexandrian says they’re bullish on the US, hungry to snap up assets in the more profitable market south of the border. So far, he’s looking for quality in three areas: the grow or cultivation facility, the management team and operation.
But he’s also scoping the scene for an opportunity: “There are lots of opportunities to find great deals,” he said.
Geographically, RIV’s looking at northeast, populous states with limited numbers of licenses like New York, Connecticut, New Jersey, but they’re also looking at Illinois and Florida. Beyond that, he’s open to a lot of options.
“If the company is standalone awesome, then that’s fantastic,” he said. “If it isn’t, then that works as well.”
A competitive advantage?
RIV’s complex deal with the Scotts subsidiary means they aren’t “handcuffed” by the same restrictions facing Canadian LPs like Tilray, according to Alexandrian. He says MSOs aren’t looking for those types of buyers.
“It’s very hard for US operators to wrap their heads around taking Canadian paper,” he said. “There’s money around. Why would you sell so early when you can wait to grow the company?”