Cannabis investment firm RIV Capital Inc. has signed a deal with The Hawthorne Collective, a newly-formed cannabis-focused subsidiary of The ScottsMiracle-Gro Company, for the purchase of a $150 million unsecured convertible note from RIV Capital. The investment is expected to close near August 24. The Agreement establishes RIV Capital as The Hawthorne Collective’s preferred vehicle for investments not currently under the purview of The Hawthorne Gardening Company. RIV Capital said its strategy remains the same as its previously disclosed plans to acquire, invest in, launch, and/or develop U.S. assets to build multistate cannabis operating and brand platform.

President and CEO of RIV Capital, Narbé Alexandrian, said, “As we approach the launch of our U.S. platform, we are excited to announce the strategic investment from The Hawthorne Collective, a subsidiary of one of the largest and most successful companies serving both the CPG and cannabis sectors.” He continued, “The Investment opens opportunities for considerable value creation and growth for RIV Capital, including potential access to additional capital that will accelerate our platform’s growth. With ScottsMiracle-Gro’s strong track record, reputation, and brand awareness, we can build upon lessons learned in both the Canadian and U.S. cannabis markets, and leverage their insights to optimize our acquisition and investment strategy.”

Through this deal with The Hawthorne Collective, Jim Hagedorn, Chairman and CEO of Scotts Miracle-Gro says it, “allows us to explore and pursue new opportunities in an industry that is poised for significant growth in the years ahead.” Alexandrian added, “While the Investment adds further capital to our balance sheet, our strategy remains the same…we will continue to focus our efforts on those prospects that we believe will contribute to building a leading multistate operator and brand platform in the U.S. market.” It’s clear that with both parties aiming to step into the U.S. market, this business move satisfies both companies by bringing them a step closer to their overall goal.