RIV Capital entered into a lease agreement for the development and operation of a planned flagship marijuana cultivation and manufacturing facility in Buffalo, New York.
RIV Capital, which is making the move with subsidiary RIV Capital US Real Estate and New York-based marijuana company Etain Health, entered into the lease with California-based developer Zephyr, the Toronto-headquartered company announced Wednesday.
RIV said it plans to sublease the facility to Etain, a vertically integrated company, upon receipt of regulatory approvals.
According to the lease, Zephyr will develop two buildings and lease them to RIV Capital.
The project is expected to cost $30 million.
RIV Capital – an investment and acquisition firm heavily funded by The Hawthorne Collective, a Scotts Miracle-Gro subsidiary – said it will be responsible for $4.5 million and will pay rent over the term of the 15-year lease.
In March, RIV entered into definitive agreements to acquire ownership and control of Etain.
RIV Capital trades on the Canadian Securities Exchange as RIV and on the U.S. over-the-counter markets as CNPOF.
