TORONTO, Aug. 1, 2019 /PRNewswire/ - 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.
About Canopy Rivers Inc.
Canopy Rivers is a unique investment and operating platform 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 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 impact of the Health Canada approval on Radicle's production capacity and ability to sell its cannabis products; the area at Radicle that will be dedicated to indoor hydroponic cultivation; the growth of the craft cannabis segment and Radicle's ability to thrive within it; consumer demand for premium products and brands; 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 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 actual impact of the Health Canada approval on Radical's production capacity, cultivation space and cannabis product sales; changes in consumer preferences and demand; 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 AIF, 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 that 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.
SOURCE Canopy Rivers Inc.