RIV Capital Inc. (CSE:RIV) (OTC:CNPOF) and Cansortium Inc. (CSE:TIUM) (OTCQB:CNTMF) have secured approval from the New York Cannabis Control Board for their upcoming merger, marking a major consolidation in the state's fast-growing cannabis industry.

The merger, expected to close by the end of 2024, positions the combined company to take full advantage of covering 25% of the U.S. population with eight cultivation and processing facilities and 42 retail dispensaries.

"We are thrilled to have received regulatory approval in New York to move forward with our business combination transaction, bringing us closer to completing this important step for both of our companies in the fourth quarter of 2024," said Robert Beasley, CEO of Cansortium, in a press release Thursday afternoon.

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New York's Cannabis Boom

With adult-use cannabis sales now in full swing, New York has quickly become a battleground for companies looking to expand their market share. RIV Capital, which operates three retail locations in the state, has seen rapid growth in both its consumer-facing and wholesale businesses since adult-use sales began earlier this year.

Cansortium, a vertically integrated company operating under the FLUENT brand, brings significant expertise from other key markets, including Florida, Pennsylvania, and Texas.

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What This Means For Investors

For cannabis investors, this merger signals a unique opportunity to gain exposure to a rapidly expanding market. RIV Capital's partnership with The Hawthorne Collective, a subsidiary of ScottsMiracle-Gro (NYSE:SMG), further strengthens its position in the cannabis supply chain. Meanwhile, Cansortium's operational expertise in cultivation, production and retail will likely drive significant value for shareholders.

Closing Timeline And Further Details

• The merger between RIV Capital and Cansortium is expected to close by the fourth quarter of 2024, pending final closing conditions.
• Upon completion, Cansortium's shares will continue trading on the Canadian Securities Exchange under the symbol 'TIUM.U' and on the OTCQB Venture Market under 'CNTMF.'
• Further details, including the principal closing conditions, can be found in RIV Capital's management information circular dated July 12, 2024.