[ad_1]
TORONTO, Aug. 23, 2022 /CNW/ – RIV Capital Inc. (the “Company”) (CSE:RIV) (OTC:CNPOF), a cannabis packaged goods company with a focus on establishing one of the strongest portfolios of brands in key strategic US markets, acting through its wholly owned indirect subsidiary, RIV Capital US Real Estate LLC (“RIV Real Estate“, together with the Company, collectively, “RIV Capital“), and Etain, LLC (“Etain“) announced that RIV Capital has entered into a lease agreement with Zephyr, a leading California-based developer, for the development and operation of a planned new flagship cannabis cultivation and manufacturing facility in Buffalo, New York (the “Flagship Facility“). RIV Capital will sublease the Flagship Facility to Etain upon receipt of necessary regulatory approvals.
Under the lease agreement, Zephyr will develop and lease to RIV Capital two buildings totaling approximately 75,000 square feet. Total development costs for the project are expected to be approximately $30 millionof which RIV Capital will be responsible for $4.5 million. RIV Capital will pay base rent to the Landlord over the term of the lease based on what the company believes is a favorable cap rate applied to the developer’s portion of the project costs. The initial term of the lease is for 15 years. RIV Capital and Etain also have the option to expand the leased premises to include additional building(s) of added manufacturing and cultivation space.
The terms of the lease include conditions related to receipt of regulatory and other necessary approvals, including completion of any environmental remediation pursuant to the New York State Brownfield Program. Etain’s operation of the Flagship Facility is also subject to receipt of regulatory approval from the New York Cannabis Control Board and the New York State Office of Cannabis Management (the “NY Regulators“).
Following receipt of regulatory and other necessary approvals and completion of the Flagship Facility, Etain will have access to a state-of-the-art cannabis cultivation and manufacturing facility that RIV Capital and Etain believe will increase the diversity, breadth, and volume of Etain’s product offerings, improve affordability and access for New York patients and consumers, and provide a platform to bring successful, authentic cannabis brands to New York. RIV Capital and Etain also intend to work with Zephyr to implement robust diversity, social equity, and inclusion goals consistent with the legislative intent and objectives of New York’s Marihuana Regulation and Taxation Act. This includes construction of a building that can be used for cultivation and/or manufacturing, which will be located within the premises of the leased site and made available to social equity applicants. Such social equity applicants …
Full story available on Benzinga.com
[ad_2]
Source link
