ScottsMiracle-Gro Announces Creation of New Investment Entity to Enable Investments in the Cannabis Industry

CANNANNEW REPORT

The Hawthorne Collective to Invest $150 million in Canadian-based RIV Capital MARYSVILLE, Ohio, Aug. 10, 2021 (GLOBE NEWSWIRE) — The Scotts Miracle-Gro Company (NYSE: SMG) announced today the creation of a newly formed subsidiary, The Hawthorne Collective, which will focus on strategic minority investments in areas of the cannabis industry not currently pursued by The Hawthorne Gardening Company. To that end, The Hawthorne Collective will provide a $150 million convertible loan to Toronto-based RIV Capital (TSX: RIV) (OTC: CNPOF), a cannabis investment and acquisition firm currently listed on the Toronto Stock Exchange. “The addition of The Hawthorne Collective into our portfolio allows us to explore and pursue new opportunities in an industry that is poised for significant growth in the years ahead,” said Jim Hagedorn, chairman and chief executive officer. “With full appreciation of current banking and legal requirements, The Collective is designed to allow us to eventually participate directly in a larger marketplace as the legal environment changes over time.” The strategic investment in RIV Capital is in the form of a six-year convertible note.  The note accrues interest at 2.03% percent annually for the first two years and includes additional follow-on investment rights. Upon conversion, The Collective, and thus ScottsMiracle-Gro, would own approximately 42 percent of RIV Capital. The Collective will also have the right to nominate up to three members to RIV Capital’s Board of Directors, which will be increased to seven. Neither The Collective nor ScottsMiracle-Gro will have an active day-to-day role in RIV Capital nor the companies in which it invests. In filings with Canadian regulators and the Toronto Stock Exchange, RIV Capital indicated it would use the funds provided by The Collective for general corporate and other lawful purposes, which could include additional investments and acquisitions. Upon close, RIV Capital will become The Collective’s…

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Source : ScottsMiracle-Gro Announces Creation of New Investment Entity to Enable Investments in the Cannabis Industry

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