It’s time for your Daily Hit of cannabis financial news for November 18, 2021.
On The Site
RIV Capital Inc. (TSX: RIV) (OTC: CNPOF) released its unaudited condensed interim consolidated financial statements for the quarter ending September 30, 2021, with a business update that mostly focused on The Hawthorne Collective. In August, a newly-formed cannabis-focused subsidiary of Scotts Miracle-Gro (NYSE: SMG), invested $150 million in RIV Capital through an unsecured convertible note.
With regards to actual financials, Riv Capital reported an operating loss of $1.7 million for the quarter, net of a provision for expected credit losses of $2.1 million. The loss per share was ($0.01). This primarily consisted of royalty and interest income (before provisions for expected credit losses) generated from the Company’s royalty and debenture agreements with Agripharm Corp., 10831425 Canada Ltd. d/b/a/ Greenhouse Juice Company, and NOYA Cannabis Inc., offset by a provision for expected credit losses on the company’s royalty receivables.
It looks as if the MedMen Enterprises Inc. (OTC: MMNFF) trial is coming to a close. According to Law360, the lawyers for the company’s former Chief Financial Officer James Parker attorney gave his closing arguments on Tuesday. Parker claims he is owed up to $24.89 million due to his employment contract, while MedMen believes the contract isn’t enforceable because Parker negotiated it himself.
Law360 reported that Michael J. Kump of Kinsella Weitzman Iser Kump Holley LLP, who represents Parker suggested the amount could be even higher if the jury decides to award him damages for emotional distress, damage to reputation, and punitive damages on claims that include promissory fraud, retaliation and wrongful discharge in violation of public policy. However, it was noted that the amount could fall down to $16.4 million if the jury chooses a blended average of the stock price in May and June 2018.
In Other News
Delic Holdings Corp (CSE: DELC) (OTCQB: DELCF) introduced its Family Support & Education program at Ketamine Wellness Centers (KWC), the largest chain of wellness centers providing ketamine treatments in the U.S. KWC was recently acquired by Delic and operates 10 ketamine infusion treatment clinics across eight states that have delivered more than 60,000 treatments to date across Arizona, Colorado, Florida, Illinois, Minnesota, Nevada, Texas and Washington.
Pelorus Equity Group announced the appointment of Lee Scholtz as the director — head of Asset Management of the Pelorus Fund, a privately held mortgage real estate investment trust (“mREIT”) for cannabis-related properties. In his new role, Scholtz will work directly with Dan Leimel, CEO of Pelorus Equity Group and managing director of Pelorus Fund, and be responsible for managing the Pelorus Fund’s assets according to the Company’s investment goals and objectives.