TORONTO, Sept. 14, 2020 /PRNewswire/ - Canopy Rivers
Inc. ("Canopy Rivers" or the "Company") announced
that it has received a statement of claim (the "Claim")
filed by 2615975 Ontario Inc., the Company's joint venture partner
in PharmHouse Inc. ("PharmHouse"), concerning certain
disputes relating to PharmHouse. The Claim makes a number of
allegations against the Company, Canopy Growth Corporation
("Canopy Growth"), and TerrAscend Corp. and TerrAscend
Canada Inc. (together, "TerrAscend"), including claims
relating to bad faith, fraud, civil conspiracy, breach of the duty
of honesty and good faith in contractual relations and breach of
fiduciary duty, and claims relating to PharmHouse's offtake
agreements with Canopy Growth and TerrAscend.
Canopy Rivers considers the Claim as it relates to the actions
of Canopy Rivers to be completely without merit, and intends to
vigorously defend its position at the appropriate time and in the
appropriate forum.
As previously announced, Canopy Rivers has formed a special
committee of independent directors (the "Special Committee")
to oversee and provide guidance relating to the Company's
investment in PharmHouse as well as to consider strategic
alternatives for the Company regarding its investment in
PharmHouse. The Special Committee continues to consider, with the
assistance of its financial and other advisors, these strategic
alternatives and is aware of, and directing the Company's defence
against, the Claim.
About Canopy Rivers
Canopy Rivers is a venture capital
firm specializing in cannabis with a portfolio of 18 companies
across various segments of the cannabis value chain. We believe
that bringing together people, capital, and ideas raises the
potential of the entire cannabis industry. By leveraging our
industry insights, in-house expertise, and thesis-driven approach
to investing, we aim to provide shareholders with exposure to
specialized and disruptive cannabis companies. Our mission is to
invest in innovators across the cannabis value chain, help them
grow, and ultimately create value by guiding these companies
towards a monetization event. Together with our portfolio, we are
helping build the cannabis industry of tomorrow, today.
Forward Looking Statements
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. To
the extent any forward-looking information in this news release
constitutes "financial outlooks" within the meaning of applicable
Canadian securities laws, the reader is cautioned that this
information may not be appropriate for any other purpose and the
reader should not place undue reliance on such financial outlooks.
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 Company's expectations with respect to
the Claim, including the merits thereof; the Company's expectations
with respect to PharmHouse; the strategic alternatives available to
PharmHouse; the Company's expected financial outlook; 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. Financial
outlooks, as with forward-looking information generally, are,
without limitation, based on the assumptions and subject to various
risks as set out herein. Our actual financial position and results
of operations may differ materially from management's current
expectations. 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;
competition risks; changes in cannabis industry growth and trends;
changes in the business activities, focus and plans of the Company
and its investees and the timing associated therewith; stock market
volatility; the Company's actual financial results and ability to
manage its cash resources; changes in general economic, business
and political conditions, including challenging global financial
conditions and the impact of the COVID-19 pandemic; potential
conflicts of interest; the regulatory landscape and enforcement
related to cannabis, including political risks and risks relating
to regulatory change; changes in the Company's relationship with
Canopy Growth Corporation and its investees; counterparty risks,
including risks associated with joint venture arrangements; risks
associated with the termination, renegotiation and enforcement of
material contracts; credit, liquidity and additional financing
risks; changes in applicable laws; compliance with extensive
government regulation, including the Company's interpretation of
such regulation; changes in the global sentiment towards, and
public opinion of, the cannabis industry; divestiture risks; and
the risk factors set out in the Company's most recent AIF and
MD&A, filed with the 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.
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SOURCE Canopy Rivers Inc.