SMITHS FALLS, ON, Feb. 7, 2019 /CNW/ - Canopy Growth Corporation
("Canopy Growth" or the "Company") (TSX: WEED) (NYSE: CGC) is
pleased to announce that it intends to increase its total
investment in Canopy Rivers Inc. ("Canopy Rivers") (TSXV: RIV) by
$30 million (CDN). The investment
will be made through a private placement of subordinated voting
shares in the capital of Canopy Rivers (the "Subordinate Voting
Shares") concurrent with Canopy Rivers bought deal offering of
Subordinate Voting Shares for gross proceeds of approximately
$55 million. This investment is being
co-led by CIBC Capital Markets and Eight Capital and is expected to
close on or about February 27,
2019.
"The advantage of a strengthened Canopy Rivers/Canopy Growth
relationship is that it accelerates and derisks execution for
invested companies," said Bruce
Linton, Founder and Co-CEO, Canopy Growth. "The strength of
the Canopy Rivers team, coupled with their selective approach to
business development and execution of strategic investments,
creates value for shareholders and for Canopy Growth."
"By increasing Canopy Growth's investment in Canopy Rivers, we
are demonstrating our interest in growing great companies,
developing selective opportunities and delivering Canopy's
shareholders more growth," added Linton.
After the closing of the bought deal and concurrent private
placement, Canopy Growth will increase its ownership of Canopy
Rivers' issued and outstanding shares, including both the
Subordinate Voting Shares and the multiple voting shares in the
capital of Canopy Rivers that are only held by Canopy Growth, on a
non-diluted basis from approximately 26.5% to approximately 27.3%.
Increasing its ownership position is a signal of Canopy Growth's
ongoing confidence in Canopy Rivers' mission to pursue strategic
opportunities in the global cannabis sector.
Canopy Rivers has recently expanded its portfolio by making
several innovative investments in the cannabis market worldwide,
including:
- An equity interest in Headset, a real-time data and
analytics company;
- Financing of Greenhouse Juice Company, a health and
wellness beverage company; and
- Increasing its ownership in Canapar, an Italy-based hemp production and processing
platform capitalizing on the rapidly expanding European CBD
market.
These planned investments will allow Canopy Rivers to focus on
what it does best - making strategic investments, in cannabis and
cannabis-adjacent markets, and increasing its partners' chances of
success by layering on strategic support from its team of
experienced industry leaders.
As a strategic partner of a globally-integrated company, Canopy
Rivers acts as an ideal business vehicle that combines investment
potential with the industry experience of Canopy Growth. The result
is a winning formula that supports early-phase companies who
benefit from being guided towards success. Canopy Growth's
investors and shareholders can be confident this model leads to
accelerated growth and an increasingly diversified business
portfolio while entrepreneurs in the cannabis sector can look
forward to the promise of investment and experienced
mentorship.
Canopy Growth is committed to fostering excellence in the
cannabis industry and believes that, through Canopy Rivers, it can
do so in ways that benefit Canopy Growth's operations and bottom
line.
Here's to (bigger, faster, smarter) Future Growth.
About Canopy Growth Corporation
Canopy Growth is a
world-leading diversified cannabis and hemp company, offering
distinct brands and curated cannabis varieties in dried, oil and
Softgel capsule forms. Canopy Growth offers medically approved
vaporizers through the Company's subsidiary, Storz & Bickel
GMbH & Co. KG. From product and process innovation to market
execution, Canopy Growth is driven by a passion for leadership and
a commitment to building a world-class cannabis company one
product, site and country at a time. The Company has operations in
over a dozen countries across five continents.
The Company is proudly dedicated to educating healthcare
practitioners, conducting robust clinical research, and furthering
the public's understanding of cannabis, and through its wholly
owned subsidiary, Canopy Health Innovations ("Canopy Health"), has
devoted millions of dollars toward cutting edge, commercializable
research and IP development. Canopy Growth works with the Beckley
Foundation and has launched Beckley Canopy Therapeutics to research
and develop clinically validated cannabis-based medicines, with a
strong focus on intellectual property protection. Canopy Growth
acquired assets of leading hemp research company, ebbu, Inc.
("ebbu"). Intellectual Property ("IP") and R&D advancements
achieved by ebbu's team apply directly to Canopy Growth's hemp and
THC-rich cannabis genetic breeding program and its cannabis-infused
beverage capabilities. Through partly owned subsidiary Canopy
Rivers Corporation, the Company is providing resources and
investment to new market entrants and building a portfolio of
stable investments in the sector.
From our historic public listing on the Toronto Stock Exchange
and New York Stock Exchange to our continued international
expansion, pride in advancing shareholder value through leadership
is engrained in all we do at Canopy Growth. Canopy Growth has
established partnerships with leading sector names including
cannabis icon Snoop Dogg, breeding legends DNA Genetics and Green
House seeds, Battelle, the world's largest nonprofit research and
development organization, and Fortune 500 alcohol leader
Constellation Brands, to name but a few. Canopy Growth operates ten
licensed cannabis production sites with over 4.3 million square
feet of production capacity, including over 500,000 square feet of
GMP certified production space. The Company operates Tweed retail
stores in Newfoundland and
Manitoba and has entered into
supply agreements with every Canadian province and territory. For
more information visit www.canopygrowth.com
Notice Regarding Forward Looking Statements
This news
release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995
and "forward-looking information" within the meaning of applicable
Canadian securities legislation. Often, but not always,
forward-looking statements and information can be identified by the
use of words such as "plans", "expects" or "does not expect", "is
expected", "estimates", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements or information involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Canopy Growth or its
subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements or information contained in this news
release. Examples of such statements include statements with
respect to the closing of the Investment; the advantage of a
strengthened Canopy Rivers/Canopy Growth relationship and Canopy
Rivers' future investment potential. Risks, uncertainties and other
factors involved with forward-looking information could cause
actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such
forward-looking information, including the Company's financing
risks; risks related to strategic investments; conflict of interest
risks; investment and divestiture risks; and such risks contained
in the Company's annual information form dated June 27, 2018 and filed with Canadian securities
regulators available on the Company's issuer profile on SEDAR at
www.sedar.com. Although the Company believes that the assumptions
and factors used in preparing the forward-looking information or
forward-looking statements in this news release are reasonable,
undue reliance should not be placed on such information and no
assurance can be given that such events will occur in the disclosed
time frames or at all. The forward-looking information and
forward-looking statements included in this news release are made
as of the date of this news release and the Company does not
undertake an obligation to publicly update such forward-looking
information or forward-looking statements to reflect new
information, subsequent events or otherwise unless required by
applicable securities laws.
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SOURCE Canopy Growth Corporation