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.