RIV Capital Inc ( CNPOF ). (CSE:RIV) (OTC:CNPOF) reported on Friday its third quarter results for the three months ended Sept. 30, revealing a 28% sequential, and 186% year-over-year, increase in net revenue to $4.9 million.

Out of that sum, retail revenue accounted for $3.4 million, up from $1.5 million in the third quarter, reflecting strong growth from adult-use dispensaries in New York. Wholesale revenue surged to $1.6 million, up from $0.3 million over the same period, the company said in a press release.

RIV Capital ( CNPOF ), a company focused on building a multi-state platform with a portfolio of cannabis brands and the operator of the Etain brand in New York, is planning to merge with Cansortium Inc. ( CNTMF ) , which operates under the FLUENT brand. The merger, expected to close in early December 2024, aims to position the combined company to serve 25% of the U.S. population, with eight cultivation and processing facilities and 42 retail dispensaries across key markets.

“Since announcing the proposed Business Combination with Cansortium ( CNTMF ), we’ve identified and captured substantial synergies, and our joint integration efforts are progressing smoothly," Dave Vautrin, the company's chief retail officer and interim CEO, said. "With Cansortium ( CNTMF ), we’re poised to complete this transaction on a solid foundation and positioned to quickly capitalize on the combined expertise and experience of our teams in some of the most dynamic markets in the cannabis industry.”

Read Also: Cannabis Co. Cansortium Refinances Debt With $96.5M Loan Ahead Of Major Merger And Next Phase Of Growth

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Q3 2024 Financial Highlights

Net loss was $63.4 million, compared to a net loss of $7.4 million in the prior year's period, driven by a $67.4 million non-cash impairment of intangible assets related to the acquisition of Etain LLC’s cannabis license rights and brands.

Gross loss was $1.2 million, compared to a gross profit of $51,000 in the same period last year.

Selling, general and administrative expenses decreased to $4.6 million, down from $4.8 million in the third quarter of the past fiscal year.

Adjusted EBITDA, a metric that excludes one-time expenses and non-cash items to reflect operational performance, came in negative at $3.2 million, an improvement compared to the $5 million loss in the prior year's period.

Net cash flows used in operating activities amounted to $9.3 million for the nine months ended September 30, 2024.

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