1.3 million sq. ft. automated facility now fully licensed
TORONTO, March 2, 2020 /CNW/ - Canopy Rivers Inc. ("Canopy Rivers") (TSX: RIV, OTC: CNPOF) today announced that PharmHouse Inc. ("PharmHouse"), its 49%-owned joint venture in Leamington, Ontario, received a licence amendment from Health Canada allowing for cultivation across its entire greenhouse, which is now fully operational. PharmHouse plans to immediately ramp up production in accordance with its offtake agreements with Canopy Growth Corporation and TerrAscend Canada Inc. PharmHouse has committed 50% of its 2020 output pursuant to these agreements, and currently expects to use the remaining 50% of its capacity for both additional offtake agreements and its own private label brand.
"The receipt of our licence amendment represents a large milestone for PharmHouse," said Tony Abbas, General Manager, PharmHouse. "This is a reflection of the hard work and dedication that our team has put in this past year and we are all very excited for this next chapter. Since the inception of PharmHouse, it has been our goal to bring innovation and consistency to greenhouse cannabis cultivation. With our full production capacity available to us and with the experience and market presence of our partners, we hope to change the industry concept of commercial cannabis production."
Canopy Rivers holds a 49% equity interest in the PharmHouse joint venture, a strategic relationship between Canopy Rivers and its PharmHouse joint venture partner, the principals and operators of North American agriculture and produce conglomerate Mastronardi Produce Limited ("Mastronardi"). Mastronardi brings its expertise in large scale production, distribution and marketing of agricultural products to the joint venture. Together, the parties have collaborated to build an automated facility designed to be in compliance with EU-GMP standards, and plan to leverage their networks and respective strengths in cannabis, global commercial agriculture, and marketing.
"We want to congratulate the entire team at PharmHouse for this achievement," said Narbe Alexandrian, President and CEO, Canopy Rivers. "We believe that PharmHouse's technology-driven approach to cannabis cultivation and its ability to leverage the significant experience of our joint venture partners is a differentiator and positions PharmHouse well to execute on its vision."
About Canopy Rivers
Canopy Rivers is a venture capital firm specializing in cannabis. Its unique investment and operating platform is 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 portfolio.
This news release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Canopy Rivers and its portfolio companies with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding: PharmHouse's plan to immediately ramp up production in accordance with its offtake agreements; the expected use of the remaining 50% of PharmHouse's capacity; PharmHouse's goal to bring innovation and consistency to greenhouse cannabis cultivation; the plans of Canopy Rivers and Mastronardi to leverage their networks and respective strengths; Canopy Rivers' belief that PharmHouse's approach to cultivation and ability to leverage the experience of its joint venture partners is a differentiator and positions PharmHouse well to execute on its vision; and expectations for other economic, regulatory, business, and/or competitive factors.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Canopy Rivers believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of Canopy Rivers. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in the business activities, goals and plans of PharmHouse; changes in the plans for the strategic relationship between Canopy Rivers and Mastronardi; changes in cannabis industry growth and trends; changes in consumer preferences and demands; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; risks relating to anti-money laundering laws; compliance with extensive government regulation, including Canopy Rivers' interpretation of such regulation; public opinion and perception of the cannabis industry; divestiture risks; and the risk factors set out in Canopy Rivers' annual information form dated July 15, 2019, filed with the Canadian securities regulators and available on Canopy Rivers' profile on SEDAR at www.sedar.com.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Canopy Rivers has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Canopy Rivers does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
SOURCE Canopy Rivers Inc.
For further information: Media: Rob Small, Senior Manager, Public Relations & Communications, [email protected]; Investor Relations: Karoline Hunter, Senior Director, Investor Relations & Communications, [email protected]