New York State Office of Cannabis Management has reviewed and approved Etain's request for an additional cultivation and manufacturing facility and a second facility for office space located in Buffalo, New York.
Upon completion, Etain will operate the Buffalo Facility, which will significantly expand its manufacturing and cultivation capabilities. The new facility is expected to focus on the production of premium flower, as Etain shares the Company's expectation that high-quality products and diversified form factors will be key differentiators in building brand and customer loyalty in the burgeoning New York market.
"This is a landmark moment for the team and an important step in positioning Etain as a leading operator with an emphasis on producing premium flower," said Mike Totzke, COO and interim CEO of RIV Capital. "As the cannabis ecosystem evolves, this facility has been strategically designed to address the anticipated surge in demand for premium products with the progressive expansion of the adult-use market throughout the state. We are thrilled to establish ourselves more strongly for the future with this new facility, which will nearly double Etain's New York canopy footprint when commercial operations commence."
As previously announced, RIV Capital's development partner has committed approximately $25.5 million to the development of the facility, and the Company has committed $4.5 million. Any additional capital required to complete the development of the project would be funded by RIV Capital with cash on hand. The Company has entered a 15-year lease with the developer for the operation of the Buffalo facility once development is substantially complete and will pay base rent to the developer based on what the Company believes is a favorable cap rate applied to the developer's portion of the project costs.
Completion of the construction and commissioning of the Buffalo Facility is expected to occur by CQ3 2024. The Company will require additional OCM approval prior to the commencement of operations at the Buffalo Facility.
For more information:
RIV Capital
www.rivcapital.com