Canopy Rivers Inc. (TSX-V: RIV) (OTC: CNPOF) is pleased to announce that its portfolio company Radicle Medical Marijuana Inc. (“Radicle”) has received approval from Health Canada for its production facility expansion project. This approval effectively doubles Radicle’s production footprint, significantly increasing its capacity to 6,000 kilograms per year.
“We are thrilled with the continued growth happening at Radicle,” said Narbe Alexandrian, President and CEO of Canopy Rivers. “The cannabis industry is showing many similarities to the craft beer movement, where local, artisanal operators are succeeding in securing loyal and robust customer followings. Radicle is thriving within this craft segment, and is raising the bar when it comes to its unique strains offered under the Gage brand. We see no slowdown in consumer demand for premium products and brands, and this Health Canada approval will help Radicle better supply high quality craft cannabis to both the medical and adult-use markets.”
First licensed for cultivation in early 2018, Radicle’s indoor facility located in Hamilton, Ontario is focused on small-batch cultivation of unique genetic strains for its premium cannabis brand, Gage. With this Health Canada approval, Radicle will have 40,000 sq. ft. dedicated to indoor hydroponic cultivation. Radicle was one of the original twenty-six licensed cannabis producers selected in a highly competitive product call by the Ontario Cannabis Store for adult-use sale online and in retail stores, and one of two entities selected despite only having a licence to cultivate at the time.
Canopy Rivers first invested in Radicle in August 2017 and currently owns approximately 22% of the fully diluted issued and outstanding common shares of Radicle. Further, Canopy Rivers is entitled to receive a royalty based on Radicle’s cannabis production, with a minimum annual payment of $900,000 per year for a term of 20 years. For more information regarding the Company’s investment in Radicle, please refer to the Company’s annual information form dated July 15, 2019 (“AIF”), filed with Canadian securities regulators and available on Canopy Rivers’ profile on SEDAR at www.sedar.com.
About Canopy Rivers Inc.
Canopy Rivers is a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. Canopy Rivers identifies strategic counterparties seeking financial and/or operating support. Canopy Rivers has developed an investment ecosystem of complementary cannabis operating companies that represent various segments of the value chain across the emerging cannabis sector. As the portfolio continues to develop, constituents will be provided with opportunities to work with Canopy Growth Corporation (TSX: WEED, NYSE: CGC) and collaborate among themselves, which Canopy Rivers believes will maximize value for its shareholders and foster an environment of innovation, synergy and value creation for the entire ecosystem.