Canopy Rivers Portfolio Company Radicle Receives Licence From Health Canada to Commence Sales of Premium Craft Cultivated Product
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TORONTO, Nov. 19, 2018 (GLOBE NEWSWIRE) - Canopy Rivers Inc. (“Canopy Rivers” or the “Company”) (TSXV:RIV) congratulates its portfolio company, Radicle Medical Marijuana Inc. (“Radicle”), on receiving its production and sales licence from Health Canada. The licence will allow Radicle to supply and sell finished cannabis products for both the medical and adult-use market in Canada.
First licensed for cultivation in early 2018, Radicle’s 140,000 square foot indoor facility located in Hamilton, ON is focused on small-batch cultivation of unique genetic strains using proprietary and sustainable growth methods. In August 2018, Radicle was one of the original twenty-six licensed cannabis producers selected in a highly competitive product call by the Ontario Cannabis Store for recreational sale online and one of two entities selected despite only having a licence to cultivate at the time. Radicle recently launched Gage Cannabis Co., a new premium brand in the craft cannabis segment.
“We are very proud to be part of the Radicle story,” said Daniel Pearlstein, EVP Strategy at Canopy Rivers. “This latest milestone marks a new and exciting chapter for Radicle and strengthens our confidence in their commitment to deliver premium, small-batch, handcrafted cannabis.”
Canopy Rivers first invested in Radicle in August 2017. The grant of the sales licence has triggered the conversion of Canopy Rivers’ convertible debenture into approximately 24% of the fully diluted issued and outstanding common shares of Radicle. Further, Canopy Rivers’ repayable debenture has been automatically set-off against consideration otherwise payable entitling Canopy Rivers to a royalty interest 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 joint management information circular (the “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.
About Canopy Rivers Inc.
The Company is a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. The Company works collaboratively with Canopy Growth (TSX: WEED, NYSE: CGC) to identify strategic counterparties seeking financial and/or operating support. The Company 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 the Company 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 the Company 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 delivery of premium, small-batch, handcrafted cannabis; and 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 the Company 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 the Company. 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; the ability to cultivate premium, small-batch handcrafted product; the ability to secure distribution and sales channels; changes in general economic, business and political conditions, including changes in the financial markets; potential conflicts of interest; the Canadian regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; changes in applicable laws; compliance with extensive government regulation; public opinion and perception of the cannabis industry; and the risk factors set out in the Circular, filed with Canadian securities regulators and available on the Company’s 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 the Company 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. The Company 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.
For further information:
Canopy Rivers Inc.
Sr. Director, Investor Relations & Communications