CannaRoyalty Announces Operational Merger of RVR Distribution

Published: September 20, 2018

CannaRoyalty Announces Operational Merger of RVR Distribution

CannaRoyalty Corp., a North American cannabis products and brands company, has merged the operations of its subsidiary Alta Supply with RVR Distribution. Effective August 31, 2018, Sadie Reyes, President of Alta Supply, was appointed to the position of President of RVR to lead the Company’s state-wide distribution efforts. Alta Supply has begun to leverage RVR’s distribution infrastructure, through transfer of inventory and accounts.

CannaRoyalty has signed a definitive agreement to close the previously announced merger of RVR with Alta Supply (the “Merger”), subject to customary closing conditions. Pursuant to the close, RVR will receive exchangeable shares as consideration, which will allow RVR shareholders to acquire 70,000 CannaRoyalty Class A shares, over the next 24 months.

“CannaRoyalty identified early on that distributors would be critical gatekeepers and growth catalysts in California’s regulated cannabis marketplace,” said Marc Lustig, Chairman and CEO of CannaRoyalty. “With this Merger, CannaRoyalty is leveraging two prominent California-grown distributors to build the pre-eminent third party distributor in the state. We already reach into the vast majority of licensed dispensaries and distribute a growing number of the world’s top legal cannabis consumer brands and products. And since California’s transition into a full adult-use market on January 1st, RVR and Alta have consistently broken monthly revenue records. Adding RVR revenue to CannaRoyalty’s top line will position the Company to exit Q4 with a revenue run rate comparable to the largest public North American cannabis companies.”

“The functional merger of Alta Supply and RVR provides the framework for the platform we’re building in California: The home of origin for the future’s global cannabis brands. These acquisitions have provided us with a growth engine that we are feeding with more business, through the injection of growth capital and revenue-catalyzing support services to our brand and retail partners. A few of these innovative partnerships, such as Pacific Remedy and Utopia, have already been disclosed, and we are in the process of negotiating a multitude of others,” commented Afzal Hasan, President and General Counsel at CannaRoyalty.

The closing of the acquisition of RVR, and the previously disclosed acquisition of Alta Supply Inc., will merge the strengths of both companies, and position CannaRoyalty as the largest third party distribution platform in the California cannabis marketplace.