About Canopy Rivers
Canopy Rivers Inc., the venture capital affiliate of Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), is an investment and strategic support platform focused on the emerging global cannabis industry.
The company has an established portfolio of diversified investments across several categories including licensed production, processing, pharmaceutical formulation, brand development, distribution, cosmetics, data & technology, and media.
2020E attributable EBITDA from joint ventures *
Current market value of public and private venture investments**
Cash for future investments ***
* Represents midpoint of estimated proportionate EBITDA for joint venture investments for CY 2020 based on Canopy Rivers’ ownership stake.
** Represents estimated market value for select public and private venture investments as at March 31, 2019.
*** Approximately $65 MM is unencumbered and available for new investments.
(TSX-V: RIV) (OTC: CNPOF) latest corporate News
Canopy Rivers’ portfolio of companies brings product, segment, geographic, and investment structure diversification. The company looks to invest in all segments of the cannabis value chain as well as aims to partner with expert management teams that bring track records of success.
Investments take the form of production-linked royalties, secured debt, newly formed joint ventures, and a variety of equity and equity-linked instruments. These various structures position Canopy Rivers with preferred economics that ascribe value to both financial and strategic considerations.
Relationship With Canopy Growth
C A N O P Y
R I V E R S
P R O V I D E S
Exposure to highly experienced operators in unique and specialized growth verticals and industry niches
Access to new brands, new IP, craft producers, and ROFR / ROFO optionality on products, services, and offtake cannabis.
C A N O P Y
G R O W T H
P R O V I D E S
To portfolio companies: access to its distribution network, genetics, and strategic support
To Canopy Rivers: access to deal flow, proprietary structures, and global reach.
EXTENSIVE DEAL FLOW
- Origination of investment opportunities from deep network and knowledge of the industry
- Access to unique structures and investment opportunities
– Production linked royalty / debt
– Newly formed joint ventures
– Preferred economics
- Strategic partnership with Canopy Growth, the world’s largest cannabis company
- Global entrepreneurs, industry leaders and government officials
- Finance professionals supported by a highly experienced team of technical cannabis professionals
- Evaluation of over 1,500 opportunities resulting in in-depth knowledge and unparalleled insights into overall trends shaping the global cannabis industry
- Retail distribution and CraftGrow (through Canopy Growth)
- Supply offtake arrangements
- R&D partnerships
Canopy Rivers offers diversified exposure to the burgeoning cannabis sector
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF) is pleased to share that its portfolio companies, James E. Wagner Cultivation Corporation ("JWC") (TSXV: JWCA) (OTCQX: JWCAF) and TerrAscend Corp. ("TerrAscend") (CSE: TER) (OTCQX: TRSSF), have entered into a purchase and supply agreement, demonstrating the type of collaboration and synergy seen throughout the Canopy Rivers ecosystem. As part of the agreement, JWC will supply cannabis flower and oils to TerrAscend, which will be made available for purchase on TerrAscend's online medical sales platform, Solace Health, providing JWC with exposure to thousands of registered medical patients across Canada.
This partnership was developed in collaboration with the Canopy Rivers Impact Team, a group specifically focused on helping portfolio companies work with each other and leverage their competitive advantages and specialized skillsets, in turn enabling them to specialize in what they do best. For JWC, it is a focus on aeroponic cultivation, leading to a clean, consistent, high-quality product for the end consumer. For TerrAscend, it is its function as a pharma-focused processing, retail, and distribution operator, and its status as the only company selling cannabis in Canada, the U.S., and Europe.
"The collaboration between JWC and TerrAscend is evidence of the Canopy Rivers ecosystem at work," said Olivier Dufourmantelle, Chief Operating Officer of Canopy Rivers. "Portfolio companies that work together, thrive together. We are constantly striving to broker opportunities for synergy and collaboration within our portfolio."
Canopy Rivers currently holds approximately 14% of the issued and outstanding common shares in the capital of JWC and owns exchangeable shares in TerrAscend. For more information regarding Canopy Rivers' investments in JWC and TerrAscend, 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. For additional information about JWC, please refer to JWC's profile on SEDAR or their website at www.jwc.ca. For additional information about TerrAscend, please refer to TerrAscend's profile on SEDAR or their website at www.terrascend.com.
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF) will report its first quarter fiscal year 2020 financial results before markets open on Tuesday, August 27, 2019. The Company's unaudited condensed interim financial statements and Management's Discussion and Analysis for the three months ended June 30, 2019 will be available on the Company's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and on the Company's website at www.canopyrivers.com/investors/financials-and-public-filings.
Certain preliminary financial information pertaining to the Company may also be found in the financial results released by Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), which are currently scheduled to be released on August 14, 2019. All financial information with respect to the quarter pertaining to the Company in the financial results of Canopy Growth Corporation are preliminary and are unaudited and subject to change and adjustment as the Company prepares its consolidated financial statements for the three months ended June 30, 2019. Accordingly, investors are cautioned not to place undue reliance on the preliminary financial information. The preliminary financial results constitute "forward-looking information" within the meaning of applicable Canadian securities laws and are subject to a number of risks and uncertainties. Actual results may differ materially. See "Forward-looking Statements".
Following the release of its first quarter fiscal year 2020 financial results, Canopy Rivers will host a conference call and audio webcast with Narbe Alexandrian, President and CEO and Eddie Lucarelli, CFO at 10:00 AM Eastern Time on August 27, 2019.
Canopy Rivers receives conditional approval to graduate to the Toronto Stock Exchange
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF) is pleased to announce that it has received conditional approval from the Toronto Stock Exchange (the "TSX") to graduate from the TSX Venture Exchange (the "TSXV") and list its class A subordinated voting shares (the "Subordinated Voting Shares") on the TSX.
"This represents another important milestone for Canopy Rivers and demonstrates the Company's continued growth and commitment to driving shareholder value," said Narbe Alexandrian, President and CEO of Canopy Rivers. "We believe that a TSX listing will substantiate our strong commitment to corporate governance and provide us with exposure to a broad new investor base that will enhance liquidity."
Final approval of the listing is subject to Canopy Rivers meeting certain standard and customary conditions required by the TSX. Upon receipt of final TSX approval, Canopy Rivers' Subordinated Voting Shares will be voluntarily delisted from the TSXV and commence trading on the TSX under the ticker symbol "RIV".
Canopy Rivers Portfolio Company YSS Receives 12th Cannabis Retail Licence in Alberta
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF) congratulates its portfolio company, YSS Corp. ("YSS") (TSXV: YSS) (WKN: A2PMAX), on receiving its 12th cannabis retail licence from the Alberta Gaming, Liquor and Cannabis Commission ("AGLC"). Operating under the YSS™ brand name, the newly licensed store is strategically located in a high-traffic suburban area in northwest Edmonton. YSS has six operational stores located in Calgary and Red Deer, with an additional two licensed locations expected to open in Vermilion and Vegreville within the next week.
"YSS continues to strengthen its hold on Alberta's cannabis retail landscape, now boasting a total of 12 stores licensed by the AGLC," said Narbe Alexandrian, President and CEO of Canopy Rivers. "With plans to have all of its licensed stores operational by the end of Q3 2019, this announcement is a continued testament to YSS's potential for growth and long-term profitability."
Canopy Rivers currently holds approximately 8% of the issued and outstanding common shares in the capital of YSS on a fully-diluted basis. For more information regarding Canopy Rivers' investment in YSS, please refer to the Company's annual information form dated July 15, 2019 ("AIF") filed with Canadian securities regulators and available on the Company's profile on SEDAR at www.sedar.com. For additional information about YSS, please refer to YSS's profile on SEDAR or their website at www.ysscorp.ca/investors.
Canopy Rivers Portfolio Company Terrascend Announces Acquisition of Vertically-Integrated Pennsylvania Cannabis Operator
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF ) is pleased to announce its portfolio company, TerrAscend Corp. ("TerrAscend") (CSE: TER) (OTCQX: TRSSF), has signed a definitive agreement to acquire Ilera Healthcare ("Ilera"), a vertically-integrated cannabis cultivator, processor, and dispensary operator in Pennsylvania. Ilera's state-of-the-art, fully integrated seed-to-sale operations adds to TerrAscend's growing global footprint, currently spanning multiple U.S. states, Canada and the European Union.
"TerrAscend's rapid expansion in the U.S. has been driven by strategic, accretive acquisitions of quality operators with strong track records of success," said Narbe Alexandrian, President and CEO of Canopy Rivers. "We view the Ilera acquisition as another important step by TerrAscend as it grows its revenue-generating operations, expands its U.S. footprint in new states, and continues to scale its global business operations."
Ilera is one of only five operators in the state of Pennsylvania to have been awarded a "super licence" to grow, process and sell cannabis. Through its state-of-the-art facility in Waterfall, Pennsylvania, Ilera has a genetic library of more than 170 cannabis strains, a modern greenhouse designed for optimal plant growth and minimal environmental impact, clean CO2 and ethanol extraction capabilities, and cutting-edge packaging technology. In addition to selling its products in its own dispensary, Ilera distributes its dried flower, concentrates, tinctures, and topicals to 50 of Pennsylvania's 52 medical cannabis dispensaries. With this acquisition, TerrAscend plans on launching its own suite of brands in the Pennsylvania market, including its California-based Valhalla Confections and State Flower brands as well as its premium Canadian cannabis brand, Haven St.
For more information, including the terms of the transaction, see TerrAscend's announcement here.
In October 2018, to accommodate TerrAscend's strategic pursuits internationally, including select opportunities in the United States, Canopy Rivers agreed to restructure its investment and waive certain restrictive covenants that were granted by TerrAscend, in connection with its original investment. For more information regarding Canopy Rivers' investment in TerrAscend, 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. For additional information about TerrAscend, please refer to TerrAscend's profile on SEDAR or their website at www.terrascend.com.
See full news release here: https://www.prnewswire.com/news-releases/canopy-rivers-portfolio-company-terrascend-announces-acquisition-of-vertically-integrated-pennsylvania-cannabis-operator-300896702.html
Canopy Rivers Announces Health Canada Approval for Significant Expansion to the Licensed Infrastructure at Radicle
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: 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.
Canopy Rivers' Flagship PharmHouse JV Licensed By Health Canada
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF) is pleased to announce that its 49%-owned joint venture, PharmHouse Inc. ("PharmHouse"), has received a cultivation licence from Health Canada. PharmHouse will be immediately commencing operations in 190,000 sq. ft. of licensed nursery infrastructure and plans to ramp up the entire 1.3 million sq. ft. ultramodern greenhouse before the end of 2019 to deliver low-cost and high-quality cannabis and cannabis derivative products to the Canopy Rivers ecosystem of partners, both domestically and internationally.
"This is a significant corporate milestone for Canopy Rivers. We believe the PharmHouse platform to be the epitome of value creation for our shareholders, and exposure to this project represents an investment opportunity only available through Canopy Rivers," said Narbe Alexandrian, President and CEO of Canopy Rivers. "Together with the expertise of agriculture industry titan Paul Mastronardi, along with our team of ag-specialist joint venture partners, Canopy Rivers has helped finance, construct, and prepare for licence one of the largest, state-of-the-art cannabis facilities in the world, and has already backed it with multi-year contracts with internationally -focused industry leaders that we expect will translate into significant cash flow and profitability," continued Alexandrian.
Founded by Canopy Rivers and the principals and operators (the "Joint Venture Partners") of North American agriculture and produce conglomerate Mastronardi Produce Limited, PharmHouse is a newly -built 1.3 million sq. ft facility located in Leamington, Ontario. Its transformative approach to production integrates a high degree of automation, lean manufacturing processes, and commercial agricultural best practices. The result is a large-scale greenhouse operationally optimized for commercial -scale, low -cost cannabis production that is designed to comply with Good Manufacturing Practices. Through the Joint Venture Partners, PharmHouse has access to plant science, automation, and logistical expertise that has been developed over multiple generations by a continental leader and garnered recognition and support from some of the largest retailers and wholesalers throughout Canada and the United States.
PharmHouse has already entered into commercial offtake agreements for a combined 50% of its 2020 production with industry leaders Canopy Growth Corp (TSX: WEED,NYSE: CGC) and TerrAscend Corp (CSE: TER,OTCQX: TRSSF), validating the Canopy Rivers ecosystem model and supporting the international brand and distribution platforms of the Company and its partners.
"This licence is a monumental achievement for PharmHouse, a joint venture that I believe represents the future of cannabis production, distribution, and technological innovation," said Paul Mastronardi, CEO of Mastronardi Produce Limited and, in his personal capacity, the largest individual shareholder in the PharmHouse joint venture. "We look forward to continuing to lend our proven operational, marketing, and distribution expertise to PharmHouse, and collaborating with Canopy Rivers to continue building our planned global cannabis platform."
Paul Mastronardi and the Joint Venture Partners bring significant thought leadership and insight to the cannabis industry, drawing on their successful experience as innovators, marketers, and distributors of greenhouse -grown vegetables for more than 60 years. With a focus on new technologies and sustainable cultivation practices, they have become one of the largest greenhouse operators in the world and have experience managing more than 4,000 productive acres of agriculture operations under both an owned/operated and contract manufacturing basis throughout Canada, the U.S., Mexico, Panama, Guatemala, and more.
"Our focus on capacity, innovation, and speed to market has been a competitive advantage of PharmHouse since our company's inception just over a year ago," said Tony Abbas, General Manager of PharmHouse. "With the project fully funded and licence now in hand, our strong and focused team intends to continue our rapid progress and ramp up towards full operations in the coming months. We believe that we are well on our way to establishing PharmHouse as a premier large-scale, low-cost, cannabis production and global distribution platform," continued Abbas.
Canopy Rivers Reports Fourth Quarter and Fiscal Year 2019 Financial Highlights and Provides Corporate Update
Canopy Rivers Inc. (the "Company" or "Canopy Rivers") (TSXV: RIV) (OTC: CNPOF) today released its financial results for the three and twelve months ended March 31, 2019. The Company's audited consolidated financial statements for the twelve months ended March 31, 2019, and its full Management's Discussion and Analysis (the "MD&A") for the three and twelve months ended March 31, 2019, are available under the Company's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and on the Company's website at www.canopyrivers.com/financials. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
"It was a year full of milestones and significant achievements for Canopy Rivers," said Narbe Alexandrian, President and Chief Executive Officer of Canopy Rivers. "Anchored by our go public transaction and listing on the TSX Venture Exchange, eight new investments, and landmark transactions for certain portfolio companies, we have strategically positioned ourselves as an accelerator of growth for companies that we believe are situated to be leaders in the cannabis industry. We are excited for the future as we continue to discover, evaluate, and invest in ways that expand our footprint into new channels and markets globally, ultimately creating value for our shareholders," continued Alexandrian. "With positive global sentiment towards cannabis on the rise, and Canada's legalization of edibles, extracts, and topicals coming into force in the fall, we are optimistic about the growth potential of the cannabis industry in the coming years."
Fourth Quarter and Fiscal Year 2019 Financial Highlights:
|(Expressed in CDN $000's, except per share amounts)|
|Total shareholders' equity||408,186||192,230|
|Three months ended
|Three months ended
|Net operating income (loss)||(1,430)||17,159|
|Net income (loss)||(1,826)||14,590|
|Other comprehensive income (net of tax)||22,418||28,893|
|Total comprehensive income||20,592||43,483|
|Basic earnings (loss) per share ("EPS")||$||(0.01)||$||0.12|
|Cash flows provided by operating activities||700||206|
|Cash flows used in investing activities||(33,047)||(2,972)|
|Cash flows provided by financing activities||89,601||24,905|
|Twelve months ended
|340 days ended
|Net operating income||8,027||42,905|
|Other comprehensive income (loss) (net of tax)||(34,271)||38,603|
|Total comprehensive income (loss)||(30,353)||74,964|
|Cash flows provided by (used in) operating activities||(2,633)||128|
|Cash flows used in investing activities||(129,614)||(33,847)|
|Cash flows provided by financing activities||190,131||80,018|
"With more than $195 million in gross proceeds raised from equity financings and more than $115 million of capital deployed into new and existing investments over fiscal 2019, we continue to position ourselves as leading allocators of capital in this new and emerging global industry," said Eddie Lucarelli, Chief Financial Officer of Canopy Rivers. "This past fiscal year represented a period of significant capacity build-out and operational investment at our portfolio companies. We are excited to see our partners complete their build-out activities over the next few quarters, allowing their underlying businesses to scale and accelerate their individual paths towards the generation of meaningful EBITDA across the Company's ecosystem."
Fourth Quarter 2019 Corporate and Portfolio Highlights:
Over the last year, the cannabis industry has continued to evolve, as regulators around the world continue to discuss the benefits of cannabis legalization, sparking interest from large traditional corporate entities and institutional investors alike. The Company expects that, as larger investors enter the sector, cannabis companies will gain more traction, leading to higher valuations and further increasing institutional investor appetite. With public perception around cannabis use shifting and an increasing addressable consumer base, cannabis consumption and demand are exhibiting steady growth. This is creating a global market with potential for operators across dozens of sectors that go beyond traditional plant-touching verticals. Management has observed that operators in the cannabis industry are turning their attention towards the cannabis beverage market, cannabidiol ("CBD"), building brands, and using data to make more informed business decisions.
In particular, in Canada and the United States, fiscal 2019 saw a move away from cultivation assets towards ancillary cannabis businesses and brands. Ancillary businesses provide products and services related to the broader cannabis economy. These businesses are subject to fewer rules and regulations, and, in management's experience, have historically been easier and less expensive to scale. Cannabis brands are also gaining momentum. Canopy Rivers anticipates that, as cannabis moves from being a product to an ingredient, brands will begin to dominate the industry. Typically, trusted brand products offer stable and reliable user experiences that, in turn, drive customer loyalty and command higher margins.
The cannabis industry is still in its infancy relative to how big the market is expected to become. The combined market capitalization of the three largest public companies in each of the tobacco, pharma, beverage and spirits industries is approximately US$200-600 billion. In comparison, the three largest public companies in cannabis currently have a combined market capitalization of US$40 billion, fueling management's belief that there continues to be a large opportunity for growth in the cannabis sector.
Among these positive regulatory shifts and emerging trends, Canopy Rivers and its portfolio companies reported several significant milestones during the fourth quarter of fiscal year 2019:
- PharmHouse Inc. ("PharmHouse") secured an $80 million syndicated credit facility, led by the Bank of Montreal and Canadian Imperial Bank of Commerce, to fund necessary project equipment and construction costs at a rate of interest that is expected to average in the mid-to-high 5% per annum range over its three-year term.
- Canopy Rivers completed a $9 million convertible debenture investment in 10831425 Canada Ltd. d/b/a/ Greenhouse Juice Company ("Greenhouse Juice"), a dynamic plant-based food and beverage company that intends to expand its business model to focus on developing natural health and wellness beverages infused with full-spectrum CBD extracts, pure CBD isolates, and other non-psychoactive cannabinoids.
- Canapar SrL, a subsidiary of portfolio company Canapar Corp. ("Canapar"), announced the commencement of construction on a new CBD extraction and processing facility in Sicily, Italy, that is expected to be completed by the end of 2019. Once completed, management anticipates that this facility will be the largest in Europe and believes that the facility will be capable of processing 600 metric tons of hemp biomass annually into CBD isolates and derivative products for distribution in the European market. Also, during the quarter, Canopy Rivers announced it had completed a $9.4 million equity investment in Canapar. The investment represented the second tranche of the $17.4 million investment commitment made in December 2018 and increased Canopy Rivers' ownership position in Canapar to 49% on a non-diluted basis.
- TerrAscend Corp. ("TerrAscend") (CSE: TER; OTCQX: TRSSF) completed its acquisition of substantially all of the assets of Grander Distribution, LLC (subsequently renamed "Arise Bioscience Inc."), a leader in the development, manufacture and distribution of innovative hemp-derived products.
- Canopy Rivers completed a $1.5 million equity investment in 10663522 Canada Inc. d/b/a Herbert, a unique brand platform that will focus on the adult-use cannabis beverage and edibles market through anticipated commercial relationships with Greenhouse Juice.
- Canopy Rivers closed a bought deal prospectus offering of 13,225,000 subordinated voting shares at a price of $4.80 per share. Concurrent with this offering, Canopy Growth Corporation ("Canopy Growth") (TSX:WEED, NYSE:CGC) purchased 6,250,000 subordinated voting shares on a private placement basis, also at a price of $4.80 per share, increasing its ownership interest in Canopy Rivers to approximately 27.1% of the issued and outstanding shares (including all subordinated voting shares and multiple voting shares) of Canopy Rivers on a non-diluted basis. The aggregate gross proceeds to Canopy Rivers was approximately $93.5 million.
- Headset, Inc. ("Headset") formed a strategic alliance with Nielsen Holdings plc ("Nielsen") to provide U.S. cannabis market data and analytics to consumer-packaged goods companies monitoring the cannabis industry. Headset also entered an additional strategic alliance with Nielsen and Deloitte LLP to provide data-driven insights related to federally regulated cannabis consumption and sales in Canada.
- Canopy Rivers completed a US$2 million equity investment in Leaflink Services International ULC ("Leaflink International"), a joint venture with LeafLink, Inc. ("LeafLink"). Leaflink International brings LeafLink's dominant business-to-business marketplace and supply chain technology platform to regulated cannabis markets outside of the U.S.
- Spot Therapeutics Inc. received a cultivation licence from Health Canada for its Fredericton-based production and distribution facility. The receipt of the license represented a triggering event for Canopy Rivers in the form of a 25-year cash flow stream that is anticipated to be approximately $2.9 million per year and is expected to begin in September 2019.
- James E. Wagner Cultivation Corporation ("JWC") (TSXV: JWCA, OTCQX: JWCAF) received a cultivation licence from Health Canada for approximately 22,000 square feet of its second facility in Kitchener, Ontario, which at full scale will be a 345,000 square foot commercial production and distribution complex. JWC also capitalized on its proprietary technology, GrowthSTORM™, by licensing the system to Wellness Farms Inc. for use in the cultivation of cannabis plants.
- Civilized Worldwide Inc. ("Civilized") entered into several new partnerships with strong brand partners, including: (i) Insight Productions, a Canadian production company; and (ii) Cannabis Club TV (CCTV), an in-dispensary television network. These partnerships are aimed at developing and distributing original digital content. Civilized also acquired The 420 Games and rebranded the event as the Civilized Games.
Subsequent Corporate and Portfolio Updates:
To date, Canopy Rivers has made investments in 18 companies, and in doing so has established a diversified portfolio of cannabis and cannabis-related companies. The Company strives to offer strategic support to its portfolio partners, as well as to facilitate synergies within the Canopy Rivers ecosystem. The following represents a brief summary of certain additional milestones achieved by Canopy Rivers and/or its portfolio companies subsequent to the end of the fourth quarter and fiscal year 2019:
- Canopy Rivers appointed Narbe Alexandrian as President and Chief Executive Officer.
- Bruce Linton stepped down as Chairman and Director of Canopy Rivers. John Bell has since been appointed as Chairman of the Board of Directors.
- Canopy Rivers completed a US$2.5 million investment in High Beauty, Inc., creator of industry-leading cannabis beauty brand high. high is formulated using cannabis sativa seed extracts, which are free of psychoactive substances including THC and CBD, in combination with certified organic plant oils, high-potency antioxidants and pure plant essential oils.
- TerrAscend completed several strategic transactions, including the completion of its acquisition of the retail dispensary network known as "The Apothecarium". TerrAscend also received European Union Good Manufacturing Practice (GMP) certification and announced a sales and distribution agreement with iuvo Therapeutics GmbH, a German pharmaceutical wholesaler with a cannabis-specific import and distribution license for the European Union. TerrAscend successfully completed a $69 million non-brokered private placement and intends to use the proceeds to fund its United States acquisition strategy, working capital and for general corporate purposes. TerrAscend also received an amendment to its licence from Health Canada allowing for the sale of cannabis oils which it will do through its medical marketplace, Solace Health.
- PharmHouse entered into a significant supply agreement with Canopy Growth. The agreement commits an incremental 20% of PharmHouse's flowering space in its 1.3 million square foot modern greenhouse to Canopy Growth over a three-year period. This is in addition to the 10% of capacity that PharmHouse previously committed to Canopy Growth until December 31, 2020.
- Canopy Rivers completed a US$1.5 million investment in BioLumic Ltd., creator of a sustainable ultraviolet light crop yield enhancement technology. The investment marked Canopy Rivers' first in the agriculture technology field.
- Agripharm Corp. received its outdoor cultivation licence from Health Canada and began growing its first outdoor crop at its Creemore, Ontario, location using award winning Green House Seed Co. genetics.
- JWC announced that both of its facilities are at full production capacity. JWC also received a licence amendment from Health Canada allowing for the sale of formulated cannabis oil from JWC's pilot facility.
- Les Serres Vert Cannabis Inc. ("Vert Mirabel"), a portfolio company of Canopy Rivers and a subsidiary of Canopy Growth, received its final cultivation licence from Health Canada. All 700,000 square feet of operating space at Vert Mirabel's greenhouse is now licensed for cannabis production.
- Canopy Rivers completed a US$10 million equity investment in ZeaKal, Inc., a California-based plant science innovator with a novel plant genetics technology called PhotoSeed™ that increases photosynthesis, improves plant yield, and enhances nutritional profiles for a variety of agricultural crops.
- Civilized and ZoomerMedia Limited ("Zoomer") entered into a collaboration agreement to create educational and entertainment cannabis content for distribution through Zoomer's media properties on all platforms, including TV, radio, print, digital, and events. Civilized also hosted its second World Cannabis Congress, a two-day conference designed to initiate conversations around policy, corporate social responsibility, research, and emerging trends in the cannabis industry.
- Solo Growth Corp. changed its name to YSS Corp. ("YSS") (TSXV: YSS). YSS acquired a call right and established a licensing agreement with Sweet Tree Modern Apothecary Ltd ("Sweet Tree"). With the addition of Sweet Tree, YSS now has four licensed-operating retail locations in Alberta. YSS has six more Alberta Gaming, Liquor and Cannabis Commission ("AGLC") licensed stores in Alberta, all of which are expected to be open by end of August 2019, two additional retail locations in Alberta that have passed AGLC inspection and a strategic portfolio of under construction, leased and prospective locations.
Canopy Rivers portfolio company YSS receives five new cannabis retail licences in Alberta
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF) congratulates its portfolio company, YSS Corp. ("YSS") (TSXV: YSS) (WKN: A2PMAX), on receiving five cannabis retail licences from the Alberta Gaming, Liquor and Cannabis Commission ("AGLC"). The five new licences are located throughout Alberta and will operate under the YSS™ brand name.
"YSS has made tremendous progress building up their retail presence in Alberta – doubling their current AGLC licensed stores to ten," said Narbe Alexandrian, President and CEO of Canopy Rivers. "With plans to have all ten stores open by the end of August, this announcement represents positive momentum for YSS in the second half of 2019."
Canopy Rivers currently holds approximately 8% of the issued and outstanding common shares in the capital of YSS on a fully-diluted basis. For more information regarding Canopy Rivers' investment in YSS, please refer to the joint management information circular of Canopy Rivers Corporation and the Company dated August 8, 2018, filed with Canadian securities regulators and available on the Company's profile on SEDAR at www.sedar.com. For additional information about YSS, please refer to YSS's profile on SEDAR or their website at www.ysscorp.ca/investors.
Canopy Rivers Portfolio Company Terrascend Receives Cannabis Oil Sales Licence in Canada
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF) congratulates its portfolio company TerrAscend Corp. ("TerrAscend") (CSE: TER) (OTCQX: TRSSF) on its announcement today that it has received an amendment to its licence from Health Canada allowing for the sale of cannabis oils from its facility in Mississauga, Ontario. Sales of TerrAscend's cannabis oils are set to begin immediately through its medical marketplace, Solace Health. This news comes two months following TerrAscend's announcement that it had been issued a Good Manufacturing Practice (GMP) certificate in accordance with the rules governing medical products in the European Union, in conjunction with establishing a sales and distribution agreement with iuvo Therapeutics GmbH, a German pharmaceutical wholesaler.
"With another key milestone achieved by TerrAscend in a matter of a few short months, the company continues to demonstrate its ambition to become a global provider of pharmaceutical-grade cannabis products," said Narbe Alexandrian, President and CEO of Canopy Rivers. "Cannabis oil is gaining popularity in Canada, the US and in other emerging global medical markets, and this sales licence enables TerrAscend to meet growing demand for non-combustible cannabis products."
In October 2018, to accommodate TerrAscend's strategic pursuits internationally, including select opportunities in the United States, Canopy Rivers agreed to restructure its investment and waive certain restrictive covenants that were granted by TerrAscend, in connection with its original investment. For more information regarding Canopy Rivers' investment in TerrAscend, please refer to the final prospectus of the Company dated February 21, 2019, filed with Canadian securities regulators and available on the Company's profile on SEDAR at www.sedar.com. For additional information about TerrAscend, please refer to TerrAscend's profile on SEDAR or their website at www.terrascend.com.
Canopy Rivers Makes US$10 Million Investment in Plant Genetics Innovator ZeaKal
Canopy Rivers Inc. and ZeaKal, Inc. ("ZeaKal") are pleased to announce an investment and strategic collaboration between Canopy Rivers and ZeaKal, a California-based plant science innovator with proprietary technologies that sustainably increase photosynthesis, improve plant yield and enhance nutritional profiles for a variety of agricultural crops. The investment from Canopy Rivers marks another significant corporate milestone this calendar year for ZeaKal, following the February announcement of its R&D collaboration (link) with Corteva Agriscience (NYSE: CTVA), the recently spun-out and NYSE-listed agricultural science division of DowDuPont.
ZeaKal's proprietary technology, PhotoSeed™, increases a plant's intrinsic photosynthetic capacity, meaning that PhotoSeed™ plants can convert more sunlight and carbon dioxide into energy for growth. This results in substantial improvement in seed and grain yield, as well as improved macronutrient profiles that drive an increase in both oil and protein content. For farmers, this means better productivity and profit margins; for consumers, this means higher nutritional profiles and an environmentally friendly way to meet growing global demand. With multi-year field trials across diverse plant species in the United States, Canada and New Zealand, the initial commercial focus has been on major row crops. Following Canopy Rivers' investment, ZeaKal intends to expand its program to include cannabis and hemp.
"Our investment in ZeaKal, the fifth consecutive international transaction for Canopy Rivers, builds on our thesis of selecting globally scalable and innovative processes, products, and technologies from complementary industries, and applying them to the cannabis and hemp economy," said Mary Dimou, Director of Business Development at Canopy Rivers. "Plant sciences is a mostly overlooked but absolutely critical segment of the cannabis and hemp value chain, and we are seeking to address this gap with this investment. ZeaKal's technology has already realized success across a number of crops during field trials, and these are crops that have been commercialized for decades. The application of this innovative technology throughout the Canopy Rivers portfolio and the cannabis and hemp industry at large could be a game changer."
Canopy Rivers believes that ZeaKal's PhotoSeed™ technology has the potential to translate into significant benefits for the cannabis and hemp industry. Due to prohibition, the cultivation of cannabis and hemp has lacked the agricultural research and advancements that have significantly improved the cultivation of other crops. Canopy Rivers believes that applying ZeaKal's PhotoSeed™ technology to cannabis and hemp represents a significant step forward - with increased crop yield, higher oil production, additional grow cycles, and enriched cannabinoid output numbering among the potential benefits of the technology. While trials on cannabis and hemp have yet to begin, the positive results already achieved give Canopy Rivers confidence in ZeaKal's experienced team and its ability to successfully optimize and adapt its technology for expansion into this industry.
"We are elated that Canopy Rivers, a cannabis and hemp industry authority, has selected ZeaKal as an agriculture partner," said Han Chen, Chief Executive Officer of ZeaKal. "Beyond the capital, it is further validation that PhotoSeed™ is a next-generation blockbuster trait that can be utilized across diverse industries. With its rich domain and technical expertise, Canopy Rivers is supporting our entry into the cannabis and hemp markets with a technology we expect to be transformative for the sector."
As a result of its US$10,000,000 investment, Canopy Rivers owns approximately 8.7% of ZeaKal on a fully diluted basis and holds an observer seat on ZeaKal's board of directors.
Canopy Growth subsidiary and Canopy Rivers portfolio company Vert Mirabel now fully licensed by Health Canada
Les Serres Vert Cannabis Inc. ("Vert Mirabel"), a subsidiary of Canopy Growth Corporation and a portfolio company of Canopy Rivers Inc. (TSXV: RIV) (OTC: CNPOF) ("Canopy Rivers") has received its final cultivation licence from Health Canada. All 700,000 sq. ft. of operating space at Vert Mirabel is now licensed for cannabis production. Vert Mirabel was established in December 2017 between Canopy Growth, Canopy Rivers, and Les Serres Stéphane Bertrand ("Bertrand").
"We are thrilled that the operational infrastructure at Vert Mirabel is now fully online with over 500,000 sq. ft. already in production," said Olivier Dufourmantelle, Chief Operating Officer, Canopy Rivers. "Vert Mirabel is a key asset for Canopy Rivers as it provides exposure to a commercially scaled source of locally grown, premium quality cannabis for distribution into Québec and across the country."
The licence for Vert Mirabel increases the facility's growing space by 190,000 sq. ft. It brings Canopy Growth's total Canadian licensed production footprint to approximately 4.6 million sq. ft, another step towards its nearly 5.6 million sq. ft. national platform. The Vert Mirabel facility leverages Bertrand's multi-generational greenhouse operational expertise to produce high-quality cannabis.
"The final licence for Vert Mirabel strengthens our operations and will allow us to increase supply to meet the recreational market demand," said Mark Zekulin, President and co-CEO, Canopy Growth. "From everyone at Canopy Growth, we congratulate the Bertrand family and their team for achieving a fully licensed, large-scale cannabis operation in under 18 months."
Bertrand is a large-scale greenhouse operator and, prior to converting to cannabis, it was the largest producer of pink tomatoes in Canada. "We are proud to announce that our venture with Canopy Growth and Canopy Rivers has reached this milestone," said Stéphane Bertrand. "Obtaining this licence will allow us to pursue our production goals in order to expand our footprint to meet the needs of the Québec market."
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF) is pleased to share that its portfolio company, Agripharm Corp. ("Agripharm"), has received its outdoor cultivation license from Health Canada. Agripharm will be growing its first outdoor crop this summer at its Creemore, Ontariolocation using award-winning genetics.
"We are pleased to see Agripharm diversify its operations and increase its growing capacity with the grant of this outdoor cultivation licence," said Oliver Dufourmantelle, Chief Operating Officer of Canopy Rivers. "Agripharm's outdoor production is ahead of the curve with support from Green House Brands, which provides decades of experience in choosing, and successfully growing, the best genetics for open-air crops."
Founded in 2013, Agripharm is home to both the first cannabis production facility built from the ground up and the first supercritical CO2 extraction lab in Canada. Agripharm is located in Creemore, Ontario, and operates out of an indoor facility that has been licensed for cannabis production since 2014. Agripharm is co-owned by SLANG Worldwide Inc. ("SLANG Worldwide") (CNSX: SLNG), Canopy Growth Corporation (TSX: WEED,NYSE: CGC) and Green House Holdings North America Inc. and received a strategic investment from Canopy Rivers. Agripharm has the exclusive Canadian rights to the intellectual property, strains and brands of Green House Seed Co., the preeminent global provider of cannabis genetics, and its sister brand Strain Hunters. Agripharm is also the Canadian distributor of SLANG Worldwide's portfolio of leading U.S. consumer cannabis brands including, O.penVAPE, Bakked, District Edibles, and Magic Buzz.
"With access to strains optimized for outdoor production from the world's leading genetics portfolio, Agripharm is well-positioned to significantly increase its production capacity for extraction," continued Dufourmantelle. "Agripharm has robust internal extraction capabilities primed to bring SLANG Worldwide's most popular U.S. consumer brands to the Canadian cannabis market."
As a strategic partner of Agripharm, Canopy Rivers provided the capital to finance the build-out of Agripharm's growing facilities in exchange for a long-term royalty interest subject to annual cash flow minimums. Canopy Rivers made its strategic investment in Agripharm in 2017, recognizing the strength of its extraction capabilities and its unique partnerships with Green House Seed Co. and SLANG Worldwide. For more information regarding the Company's investment in Agripharm, please refer to the joint management information circular of Canopy Rivers Corporation and the Company dated August 8, 2018, filed with Canadian securities regulators and available on the Company's profile on SEDAR at www.sedar.com.
Canopy Rivers Backs BioLumic - Shines Light on New AgTech for the Medical Cannabis Industry
BioLumic Ltd. ("BioLumic"), creators of a sustainable ultraviolet (UV) crop yield enhancement system, and Canopy Rivers Inc. ("Canopy Rivers") (TSXV: RIV), (OTC: CNPOF) today announced a strategic investment from Canopy Rivers. BioLumic extended the Finistere Ventures-led Series A financing round to include Canopy Rivers' strategic investment of US$1.5 million, closing the oversubscribed round at US$6.7 million. The financing was comprised of a tier-one investor roster that also included Rabo Food & Agri Innovation Fund and Radicle Growth acceleration fund.
This marks Canopy Rivers' first investment in agri-technologies, specifically focused on the promising fields of plant physiology and UV photobiology. With extensive global trials in traditional and high-value produce crops already underway, BioLumic will use the added investment to grow its team to support the acceleration and expansion of its UV light treatment initiatives, including applications in the medical cannabis market.
"Canopy Rivers' mission is to build and support a thriving global cannabis economy, and we are dedicated to identifying and investing in strategic technology players throughout the legal cannabis value chain," stated Mary Dimou, Director, Business Development, Canopy Rivers. "Led by an exceptional management team, BioLumic's groundbreaking, proprietary UV technology has the potential to significantly improve cannabis growth, vigor and yield – promising an environmentally friendly, GM-free cannabis crop through the power of light."
Already demonstrating game-changing results in produce-crop trials around the globe, BioLumic's UV light treatments deliver long-term crop benefits such as improved crop consistency, increased yield, drought tolerance, and disease and pest resistance. With the global legal cannabis market expected to top $146 billion by the end of 2025 and increasing legalization of cannabis usage and farming around the globe, BioLumic aims to help commercial producers cultivate stronger, healthier plants to meet the rising demand for cannabis and cannabis-derived products in the regulated medical cannabis market.
"Growers need more sustainable ways to meet global crop demands, and precision UV light treatments can safely activate important characteristics in seeds and seedlings that make them more productive as they mature," said BioLumic CEO Warren Bebb. "Canopy Rivers' extensive network in the cannabis industry and its ecosystem of companies will open a new, strategic market for BioLumic. Given our results with other flowering crops, the cannabis plant is a natural fit for our technology."
Building out its data science and machine learning teams, BioLumic will use the funding to accelerate the research and commercialization of its UV light crop yield enhancement system – with a focus on developing cannabis-specific UV treatments to improve yield and increase the concentration of cannabinoids, such as cannabidiol (CBD). It will continue to focus on traditionally grown produce such as lettuce, broccoli, strawberries and tomatoes, and increase its focus on seed treatments for row crops. The company plans to explore indoor farming and protected-environment, high-value crops in the future.
Canopy Rivers is proud to collaborate with BioLumic and its leading agtech venture partners to extend BioLumic's commercial and propriety agri-technologies for potential application in the medical cannabis sector. Finistere Ventures, focused on agtech and supported by industry leaders like Bayer and Nutrien, works closely with its extensive network in the ag and food space to help commercialize innovations at a global scale. Rabo Food & Agri Innovation Fund was launched by Rabobank, a global leader in food and agriculture financing, and invests in high-potential, early-stage food and agriculture companies.
Dr. Adrian Percy, newly appointed CTO of Finistere Ventures and the former head of R&D for the Crop Science Division of Bayer, has joined the Board as Chairman, while Finistere's Arama Kukutai will stay on as a Board Observer. As part of the investment, Canopy Rivers' Mary Dimou will join the BioLumic Board as an Observer. Dean Tilyard, CEO of The Factory in Palmerston North, New Zealand, will also join the Board.
"It is exciting to consider the broad range of benefits that BioLumic technology can offer to both seed producers and growers across a range of crops – from improved yield and consistency to reduction, and potentially replacement, of certain chemical and biological inputs," noted Percy.
Canopy Rivers Announces Significant Supply Agreement Between PharmHouse and Canopy Growth
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF) is pleased to announce that its portfolio company PharmHouse Inc. ("PharmHouse") has entered into a second offtake agreement (the "Agreement") with Canopy Growth Corporation ("Canopy Growth") (TSX: WEED) (NYSE: CGC) for the purchase of cannabis from its 1.3 million square foot greenhouse facility upon licensing. The Agreement commits an additional 20% of PharmHouse's flowering space to Canopy Growth for the next three years, in addition to the 10% that was originally committed in May 2018. The Agreement provides for the delivery to Canopy Growth of a minimum of 25,000 kg of cannabis per year and a maximum of 45,000 kg of cannabis per year.
"PharmHouse continues to show tremendous progress at the facility, and the joint venture is quickly developing as a key pillar for value creation and synergy within the Canopy Rivers portfolio ecosystem," said Olivier Dufourmantelle, Chief Operating Officer of Canopy Rivers. "Thanks to the collaborative contributions of our joint venture partners, the ongoing support and guidance of Canopy Rivers, and the strategic insight of Canopy Growth throughout the licensing process, we are excited to announce an incremental supply partnership that mutually benefits all three parties."
This new supply arrangement provides PharmHouse with additional revenue visibility and financial de-risking for a significant portion of the expected production from the flagship facility. Canopy Rivers holds a 49% equity interest in the PharmHouse joint venture and has played an active role in sourcing and negotiating production and supply agreements, which now cover approximately 50% of expected annual output. The incremental 50% of output remains unencumbered for the development of PharmHouse's own suite of brands and products.
"This offtake agreement represents a significant step forward for PharmHouse. By effectively committing and selling 50% of our near-term cannabis production, we favorably position PharmHouse for the development of a proprietary suite of products and brands and/or the pursuit of incremental contract manufacturing agreements," said Tony Abbas, General Manager of PharmHouse. "The fact that we are executing yet another agreement with an industry titan like Canopy Growth sends a strong signal about the quality of our operations and the confidence in our team's ability to deliver."
The 1.3 million square foot facility in Leamington represents the first stage of a planned global strategic relationship between Canopy Rivers and its PharmHouse joint venture partner, a company formed by the leading principals and operators of a North American agriculture conglomerate. The parties seek to leverage their relationship networks and respective strengths in cannabis, global commercial agriculture, marketing, and distribution to pursue regulated cannabis opportunities together on a global scale.
Canopy Rivers congratulates TerrAscend on receiving its EU GMP certification and new distribution agreement
Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF) congratulates its portfolio company TerrAscend Corp. ("TerrAscend") (CSE: TER) (OTCQX: TRSSF) on its announcement yesterday that its facility in Mississauga, Ontario, Canada has been issued a Good Manufacturing Practice ("GMP") certificate in accordance with the rules governing medicinal products in the European Union ("EU"). TerrAscend also entered into a comprehensive sales and distribution agreement with iuvo Therapeutics GmbH ("iuvo"), a German pharmaceutical wholesaler.
Only medical cannabis from EU GMP certified facilities, or the equivalent, may be sold in the EU. The regulatory approach has been led by several of the larger EU countries and as such, pharmaceutical grade controls in production were an established requirement from the onset of medical cannabis legalization. Through iuvo, management at TerrAscend expects to begin shipping pharmaceutical-grade cannabis products into Germany.
"We applaud TerrAscend for achieving one of the highest and most rigorous levels of quality certification in the world," said Narbe Alexandrian, President of Canopy Rivers. "TerrAscend is now one of select Canadian licensed producers that have been issued EU GMP certificates, and with its new distribution arrangement with iuvo, becomes the first and only cannabis operator with sales in US, Canada, and Europe."
In October 2018, to accommodate TerrAscend's strategic pursuits internationally, including select opportunities in the United States, Canopy Rivers agreed to restructure its investment and waive certain restrictive covenants that were granted by TerrAscend, in connection with its original investment.
CANOPY RIVERS INCREASES CPG PORTFOLIO WITH INVESTMENT IN HIGH BEAUTY
Canopy Rivers Inc. (“Canopy Rivers”) (TSXV: RIV) and High Beauty, Inc. (“High Beauty”) are pleased to announce the completion of an investment by Canopy Rivers in High Beauty, creator of industry-leading cannabis beauty brand high. Canopy Rivers has subscribed for US$2.5 million of shares in High Beauty, representing 18.4% of the company on a fully diluted basis, including additional warrant coverage.
“Being supported by Canopy Rivers enables us to collaborate within the Canopy Rivers ecosystem and to focus our energy and passion on the creation of a robust new product line using cannabis-derived extracts,” said Melissa Jochim, a highly successful formulator and Founder of High Beauty. "Cannabis sativa seed oil is an untapped ingredient resource with amazing skincare benefits. This partnership will allow us to scale High Beauty’s business much “higher” in a short time frame.”
“We have been actively pursuing opportunities in the health and beauty industry, guided by a growing consumer trend of brand new, innovative and functional beauty products. Enter high,” said Narbe Alexandrian, President of Canopy Rivers. “Led by Melissa Jochim, a repeat entrepreneur, preeminent formulator and brand developer coming from the natural, organic segment of the beauty industry, high has already captured mindshare and awareness of consumers - it has all the makings to continue to be a prominent brand in the cannabis-infused beauty market.”
We’re proud to welcome @highskincare to the $RIV $RIV.V portfolio. Innovators in the cosmetics space, High Beauty focuses on how #cannabis ingredients can be used topically and legally for #skincare. https://t.co/8trpQu10xV #BackedByRIV pic.twitter.com/1XhOiXfC6A
— Canopy Rivers Inc. (@CanopyRiversInc) April 16, 2019
CANOPY RIVERS PORTFOLIO COMPANY AWARDED SECOND LICENCE FROM HEALTH CANADA
Canopy Rivers Inc. (“Canopy Rivers” or the “Company”) (TSXV: RIV) is pleased to share that its portfolio company, James E. Wagner Cultivation Corporation (“JWC“) (TSXV: JWCA) (OTCQX: JWCAF), has received its cultivation licence from Health Canada for its Kitchener-based commercial scale production facility (“JWC2“). This second licence launches the initial phase of JWC2, a 345,000 square foot production and distribution complex where JWC is rolling out more than 130 individual production rooms utilizing JWC’s proprietary GrowthSTORM™ Dual Droplet cultivation platform and methodologies. With the newly licenced facility located just minutes from JWC’s already licenced pilot facility, JWC is well-positioned for an efficient ramp-up and expects to commence cannabis production at JWC2 immediately.
“While optimizing production methodologies at their already licenced pilot facility, JWC has concurrently built out and implemented refinements and learnings for production at commercial scale,” said Daniel Pearlstein, EVP, Strategy, of Canopy Rivers. “We are pleased to see Health Canada reward JWC for the quality of their operations, and their disciplined approach to expansion with the issuance of this second site licence.”
"We have seen strong demand for standardized, quality-controlled indoor cannabis within both the medical and adult use cannabis markets," continued Pearlstein. "Until now, JWC has focused on delivering an exceptional experience to a concentrated population of patients and through Canopy Growth's Spectrum Cannabis online store. With this second site licence in hand and the expanded production facility now online, JWC is well-positioned to bring their premium quality-controlled cannabis products to patient and consumer markets on a much larger scale."
CANOPY RIVERS PORTFOLIO COMPANY LICENSED BY HEALTH CANADA, TRIGGERING LONG-TERM CASH FLOW STREAM
Canopy Rivers Inc. (“Canopy Rivers” or the “Company”) (TSXV: RIV) congratulates Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) (“Canopy Growth”) and its portfolio company, Spot Therapeutics Inc. (“Spot”), on receiving a cultivation license from Health Canada for its Fredericton-based production and distribution facility. The newly licensed facility will operate under the flagship Tweed banner and is another important pillar in the Canopy family of companies’ commitment to establishing a local presence, engaging local trades, and creating economic opportunities within the provinces and communities the companies serve.
In 2017, Canopy Growth solidified its expansion strategy in Atlantic Canada when it acquired Spot and made significant local funding commitments in collaboration with Canopy Rivers, ultimately resulting in Canopy Growth being rewarded with one of the first provincial supply contracts in the cannabis industry, pursuant to a landmark MOU with the government of New Brunswick.
“The long-term income stream from Spot, combined with our existing royalty portfolio, will further stabilize Canopy Rivers’ operating cash flow profile and provide us with additional financial resources to deploy as we continue to make investments in industry verticals we believe offer long-term strategic value for our portfolio partners and shareholders,” said Eddie Lucarelli, CFO of Canopy Rivers.
LEAFLINK AND CANOPY RIVERS COLLABORATE TO DEPLOY MARKET-LEADING B2B SOFTWARE PLATFORM GLOBALLY
Canopy Rivers Inc. (“Canopy Rivers”) (TSXV: RIV) and LeafLink, Inc. (“LeafLink”) are pleased to announce the establishment of LeafLink Services International ULC (“LeafLink International”), a new venture that exclusively licenses and leverages LeafLink’s dominant business-to-business (B2B) marketplace and supply chain technology platform for deployment throughout regulated international cannabis markets.
LeafLink is a software-as-a-service (SaaS) marketplace that simplifies the supply chain through its e-commerce platform. The company has a growing network of more than 950 cannabis brands, and penetration throughout ~2,800 cannabis retailers across 16 territories in the United States. LeafLink has established the single largest B2B marketplace for cannabis brands and facilitates more than US$900 million in gross merchandise value annually. Retailers use LeafLink for managing their wholesale inventory, enabling them to shop multiple vendors in one cart, view up-to-date product and brand menus, review historical and open orders, discover new products, and request samples. LeafLink further serves vendors by offering supplementary tools such as order management, a customer relationship management (CRM) platform, inventory tracking tools, and customized reporting systems, among other services.
By creating this new joint venture, Canopy Rivers continues to expand its exposure across the cannabis value chain through a capital-light, market-leading B2B platform that is immediately scalable across legal jurisdictions. Canopy Rivers intends to integrate its network of complementary cannabis companies and global reach to drive growth for LeafLink International and assist in developing and deploying this technology as it continues to increase its global footprint.
CANOPY RIVERS PORTFOLIO COMPANY HEADSET ENTERS INTO ALLIANCE WITH GLOBAL DATA ANALYTICS GIANT NIELSEN
Canopy Rivers Inc. (the “Company” or “Canopy Rivers”) (TSXV: RIV) congratulates its portfolio company Headset, Inc. (“Headset”) on the formation of its landmark strategic alliance with Nielsen Holdings plc (“Nielsen”) (NYSE: NLSN). Yesterday, Nielsen and Headset together announced an alliance that will provide U.S. cannabis market data and analytics to consumer packaged goods (CPG) companies monitoring the cannabis space.
“This announcement from Headset and Nielsen validates our belief in the importance of data in the rapidly unfolding and brand-intensive cannabis industry,” said Narbe Alexandrian, President of Canopy Rivers. “Partnering with Nielsen, an S&P 500 company and global market leader in consumer data and insights, marks a significant step forward for Headset in its goal to help companies make more informed business decisions through data.”
Through their partnership, Headset and Nielsen will enable CPG companies to better understand and engage with the fast-changing and dynamic cannabis industry. Combining Nielsen’s consumer research capabilities with Headset's real-time retail point of sale data and proprietary software platform will deliver greater visibility and insight into market-leading trends, consumer sentiment, the competitive product landscape, and potential interaction points within CPG categories. The first product of the Headset and Nielsen relationship will be a U.S.-focused industry report exploring market dynamics, consumer perceptions and motivations, and insights into purchase dynamics. While initially focused on the U.S., Headset and Nielsen also plan on developing a full suite of capabilities for the Canadian market.
CANOPY RIVERS COMPLETES PREVIOUSLY ANNOUNCED BOUGHT DEAL AND CONCURRENT PRIVATE PLACEMENT FOR TOTAL GROSS PROCEEDS OF APPROXIMATELY $93.5 MILLION
Canopy Rivers Inc. (TSXV:RIV) (“Canopy Rivers” or the “Company”) is pleased to announce that it has closed its previously announced bought deal financing (the “Bought Deal”) of subordinated voting shares of the Company (the “Subordinated Voting Shares”) with a syndicate of underwriters (the “Underwriters”) led by CIBC Capital Markets (“CIBC”) and Eight Capital (together with CIBC, the “Joint Bookrunners”). The Bought Deal consisted of an aggregate of 13,225,000 Subordinated Voting Shares, which reflects the exercise in full of the Underwriters’ over-allotment option, at a price of $4.80 per Subordinated Voting Share (the “Issue Price”) for gross proceeds of approximately $63.5 million.
Concurrent with the Bought Deal, the Company completed the previously announced private placement (the “Private Placement” and together with the Bought Deal, the “Offering”) with Canopy Growth Corporation (“Canopy Growth”), the Company’s largest shareholder. Pursuant to the Private Placement, Canopy Growth purchased 6,250,000 Subordinated Voting Shares at the Issue Price for additional gross proceeds of $30.0 million. Prior to the Offering, Canopy Growth owned approximately 26.5% of the issued and outstanding shares of the Company on a non-diluted basis and, elected to subscribe under the Private Placement for more than its pro rata participation right. Following completion of the Offering, Canopy Growth’s ownership interest in the Company has increased to approximately 27.1% of the issued and outstanding shares of the Company on a non-diluted basis. The Subordinated Voting Shares issued pursuant to the Private Placement are subject to a statutory hold period under Canadian securities legislation expiring on June 28, 2019, and statutory restrictions on the distribution of shares from the holdings of a control person.
See full news release here: https://www.canopyrivers.com/news/canopy-rivers-news/canopy-rivers-completes-previously-announced-bought-deal-and-concurrent-private-placement-for-total-gross-proceeds-of-approximately-935-million
CANOPY RIVERS REPORTS THIRD QUARTER FINANCIAL HIGHLIGHTS AND PROVIDES CURRENT CORPORATE UPDATE
Canopy Rivers Inc. (the “Company” or “Canopy Rivers”) (TSXV: RIV) today released its financial results for the three and nine months ended December 31, 2018. The Company’s full Management's Discussion and Analysis (the “MD&A”) and unaudited condensed interim consolidated financial statements for the three and nine months ended December 31, 2018 are available on the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.canopyrivers.com/financials. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
“We believe that Canopy Rivers has rapidly developed a strong position in the dynamic and fast-growing global cannabis industry,” said Bruce Linton, Chairman and Chief Executive Officer of Canopy Rivers. “By bringing focus and clarity to every investment decision and working alongside global market leader Canopy Growth, Canopy Rivers is responding to the greatest need in the cannabis industry – smart capital.”
“With more than $55 million of capital deployed during the quarter, Canopy Rivers continues to position itself as a preeminent investment firm in the cannabis industry,” said Eddie Lucarelli, Chief Financial Officer of Canopy Rivers. “As we continue to see meaningful developments at our portfolio companies, the closing of our bought deal financing and strategic investment from Canopy Growth will add additional strength to our balance sheet. With a strong pipeline of investment opportunities and regulatory reform continuing around the world, Canopy Rivers is optimally positioned to continue to prudently deploy capital to the global cannabis sector.”