Dubbing it one of the “most significant transactions for a women-owned business in cannabis history,” Etain Health, one of 10 cannabis companies that operates in New York’s medical market, announced March 30 it had penned an agreement with RIV Capital, which will be assuming ownership and control of the family-owned, vertically integrated business.

The $247 million deal is still pending regulatory approvals from the New York Cannabis Control Board and the New York State Office of Cannabis Management, according to a press release by RIV Capital, an investment firm that is the Hawthorne Collective’s, a ScottsMiracle-Gro subsidiary, “preferred vehicle for cannabis-related investments.” The Hawthorne Collective will advance an additional $25 million to RIV Capital concurrently with the transaction, according to the announcement.

The payment terms include $212 million in cash and $35 million in Class A common shares in RIV Capital, according to RIV’s press release. Etain CEO Amy Peckham will join RIV Capital’s Board of Directors, and Peckham, along with her daughters Hillary Peckham, COO, and Keeley Peckham, chief horticultural officer, will “be integrated into RIV Capital as core leaders in the future of the Etain brand,” Etain noted in its announcement. The mother-daughter team established the company, the only non-multistate operator in New York, in 2015.

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Mark Sims, former SVP of Strategy and M&A for ScottsMiracle-Gro, was also named CEO and president of RIV Capital, and will lead the company’s efforts in New York as the state continues to build its framework for adult-use cannabis sales.

In addition to its Chestertown cultivation and manufacturing facility, where expansion is underway, Etain operates four dispensaries in the state, including its flagship location in Manhattan and stores in Kingston, Syracuse, and Yonkers. RIV Capital noted its plans to expand operations in New York, investing “additional capital and resources into four new dispensaries, and to support the construction of a new, state-of-the-art flagship indoor cultivation facility.”

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“We’re fully supportive of RIV Capital’s strategy and plans to grow Etain,” Hawthorne Collective President Chris Hagedorn said in a press release. “This is a significant step forward for both. Just as importantly, it will establish an important foundation upon which The Hawthorne Collective and, therefore, ScottsMiracle-Gro, can participate in the larger marketplace as the legal and regulatory environment evolves.”

The move is part of RIV Capital’s strategy to shift “from an investor in the cannabis value chain to a full-fledged operator of licensed cannabis cultivation and dispensary facilities in the U.S.,” Sims said in a press release.

“RIV Capital clearly recognized the potential for women-led brands to flourish in the cannabis industry, and we are proud that our work at Etain has led us to this point in time,” Etain noted in a press release signed by the Peckham family. “We will continue to focus our efforts on finding opportunities to partner with and elevate small women-owned brands in cannabis and cannabis-adjacent spaces.”