JAMES E. WAGNER CULTIVATION CORPORATION HAS BEEN APPROVED FOR THE SALE OF CANNABIS OILS
TORONTO, July 8, 2019 /CNW/ - Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSXV: RIV) (OTC: CNPOF) is pleased to share that its portfolio company, James E. Wagner Cultivation Corporation ("JWC") (TSXV: JWCA) (OTCQX: JWCAF), has received approval of a licence amendment from Health Canada. This licence amendment allows for the sale of formulated cannabis oil from JWC's pilot facility in Kitchener, Ontario. In anticipation of this news, JWC is prepared to commence the sale of formulated cannabis oil to JWC's medical cannabis patients on July 9, 2019.
"We believe that JWC's multigenerational cannabis experience, its proprietary production methodologies, and a diversified product offering, make JWC a unique asset within the Canopy Rivers portfolio," said Narbe Alexandrian, President and CEO of Canopy Rivers. "With its Health Canada approval for the sale of formulated oil products, JWC is well positioned to capitalize on the production and sale of higher margin cannabis oils. With a full processing sales license, JWC will have the ability to create precursor products that could lead to the production of edible cannabis, cannabis extracts, and cannabis topicals when the regulations take effect later this year."
Canopy Rivers currently holds approximately 14% of the issued and outstanding common shares in the capital of JWC on a fully-diluted basis. Additionally, Canopy Rivers receives a long-term royalty cash flow stream from JWC with a minimum annual payment of approximately $487,500. The royalty has a term of 20 years. For more information regarding Canopy Rivers' investment in JWC, 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 JWC, please refer to JWC's profile on SEDAR or their website at www.jwc.ca.
About Canopy Rivers:
Canopy Rivers is a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. Canopy Rivers works collaboratively with Canopy Growth Corporation (TSX: WEED, NYSE: CGC) to identify 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 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: JWC as an asset to the Canopy Rivers portfolio; JWC's ability to capitalize on the production and sale of high margin cannabis oils; JWC's ability to create precursor products that could lead to the production of edible cannabis, cannabis extracts, and cannabis topicals; and other expectations for other economic, business, and/or competitive factors.
Investors are cautioned that forward-looking information is not based on historical facts 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; JWC's ability to produce and sell formulated oil products; the ability to secure distribution and sales channels; 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' final short form prospectus dated February 21, 2019, filed with 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 which 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Canopy Rivers Inc.
For further information: Canopy Rivers Inc., Karoline Hunter, Sr. Director, Investor Relations & Communications, E-mail: [email protected]