TORONTO, Oct. 24, 2019 /CNW/ - Canopy Rivers Inc. ("Canopy Rivers") (TSX: RIV, OTC: CNPOF), a venture capital firm specializing in cannabis, today announced that its portfolio company Radicle Medical Marijuana Inc. ("Radicle") has received approval for oil sales from Health Canada. This additional licence allows for the development and sale of new cannabis products, including cannabis oil and concentrates. This opens the door for Radicle's medical patients to access other product forms in the company's craft cannabis selection.
"Consumer behaviours are evolving, and we believe many of today's cannabis consumers are open to trying alternatives to dried flower products," said Narbé Alexandrian, President & CEO, Canopy Rivers. "With its Health Canada approval for the sale of formulated oil products, Radicle is well positioned to capitalize on this demand while maintaining its commitment to the production of premium, small-batch craft cannabis."
Canopy Rivers has invested $10 million in Radicle. Canopy Rivers currently owns 24% of Radicle on a fully diluted basis and also receives a long-term royalty cash flow stream from Radicle with a minimum annual payment of $900,000 over a 20-year term. More information on Canopy Rivers' investment in Radicle can be found in Canopy Rivers' management's discussion and analysis of financial results, dated August 26, 2019.
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 ecosystem.
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 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: the impact of the additional licence and the expectation that it will enable Radicle's medical patients to access other product forms; management's belief that cannabis consumers are open to trying alternatives to dried flower products and that the Health Canada approval makes Radicle well positioned to capitalize on this demand while maintaining its commitment to the production of premium, small-batch craft cannabis; and expectations for other economic, 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; Radicle's ability to produce and sell formulated oil products and to capitalize on consumer demand while maintaining its commitment to the production of premium, small-batch craft cannabis; 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; public opinion and perception of the cannabis industry; 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: Canopy Rivers Media: Rob Small, Senior Manager, Public Relations & Communications, [email protected]; Canopy Rivers Investor Relations: Karoline Hunter, Senior Director, Investor Relations & Communications, [email protected]