SMITHS FALLS, ON and
TORONTO, Jan. 10, 2018 /CNW/ - Canopy Growth
Corporation ("Canopy Growth") (TSX:WEED) is pleased to announce
that its partly owned subsidiary, Canopy Rivers Corporation
("Canopy Rivers") has closed a non-brokered private placement
offering of 23,636,363 Class B common shares (the "Shares") at a
price of $1.10 per Share. Pursuant to
the offering, Canopy Rivers raised aggregate gross proceeds of
approximately $26 million. Canopy
Growth subscribed for 4,673,938 Shares for $5,141,331.80.
"Canopy Rivers has efficiently allocated the initial capital and
quickly established an attractive portfolio of diversified
investments including licensed producers, late stage applicants,
ancillary product developers, and industry leading brands," says
Bruce Linton, CEO of Canopy Growth
& Chairman of Canopy Rivers.
Founded in April 2017, Canopy
Rivers was formed to complete streaming deals to flow product
through Canopy Growth's platform and diversify supply channels to
satisfy the needs of Canada's
largest group of cannabis customers. As the Canopy Rivers
leadership team evaluated the landscape and identified additional
deal potential, a more robust business model matured to complement
streaming activities. Today, Canopy Rivers has a portfolio of
diversified investments and represents a balanced mix of equity,
debt, royalty and profit sharing investment structures.
"Our team has curated a tier one group of complimentary but
unique investee companies in a short period of time," said
Sean McNulty, Co-founder of Canopy
Rivers. "We have pioneered a series of offtake and strategic
support programs and efficiently leveraged the resources of Canopy
Growth's cannabis production and distribution platform in a way
that creates long term value for our investors."
Canopy Growth controls the majority voting rights in Canopy
Rivers and holds an approximate 30% equity stake on a non-diluted
basis. The balance of Canopy Rivers shares are held by strategic
partners and private investors, including members of both Canopy
Growth and Canopy Rivers who participated in this funding
round.
"The cannabis investment landscape continues to become more
crowded and difficult for investors to track, evaluate, and
differentiate. Canopy Rivers offers its investors financial
exposure to a funnel of domestic and international opportunities,
with both private and public companies, in risk-mitigated
structures that are typically not prevalent in conventional
financial markets. This funnel is filtered, evaluated, and
scrutinized by a team of financial and legal professionals, and
ultimately vetted by the largest and most sophisticated cannabis
company in the world. We are in the infancy of this globally
emerging industry and our pipeline of opportunities has never been
more robust," says Peter
Hatziioannou, Co-founder of Canopy Rivers.
Proceeds of the private placement will be used to provide growth
capital in various forms, including but not limited to, the
purchase of a right to cannabis production, royalty transactions
and other strategic investments in or providing financing for
companies either licensed to produce cannabis or companies that
have applied, or are in the process of applying, for a license to
produce cannabis as well as for working capital and general
corporate purposes. Rivers is committed to exclusively investing
and supporting firms operating in federally legal
jurisdictions.
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. 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.
Canopy Growth has established partnerships with leading sector
names including cannabis icon Snoop Dogg, breeding legends DNA
Genetics and Green House seeds, and Fortune 500 alcohol leader
Constellation Brands, to name but a few. Canopy Growth operates
seven cannabis production sites with over 665,000 square feet of
production capacity, including over 500,000 square feet of
GMP-certified production space. The Company has operations in seven
countries across four 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 partly owned subsidiary, Canopy Health Innovations,
has devoted millions of dollars toward cutting edge,
commercializable research and IP development. 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 to our continued international expansion, pride in
advancing shareholder value through leadership is engrained in all
we do at Canopy Growth.
About Canopy Rivers
Canopy Rivers is a diversified
investment platform designed to maximize shareholder value. Through
a strategic alliance with Canopy Growth and the sector's leading
investment strategists, Canopy Rivers adds value to the businesses
it selects as investments. Learn more by visiting
www.canopyrivers.com
Notice Regarding Forward Looking Information
This news
release contains forward-looking information. Often, but not
always, forward-looking 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 information involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Canopy Growth, its subsidiaries or
Canopy Rivers to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information contained in this news release.
Examples of such statements include the pipeline of domestic and
international investment opportunities, the creation of long-term
value for investors, the use of proceeds of the offering and the
timing of a potential go public transaction for Canopy Rivers.
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 risks associated with: anticipated business strategies
and trends in the business or the cannabis industry that could
cause actual results or events to differ materially from those
expressed or implied by the forward-looking information; risks
related to the regulatory and legal framework of cannabis
production, cultivation and sale in Canada and abroad; absence of control over the
operations of the investment partners and having to rely on the
accuracy of the public disclosure and other information received
from the owners and operators of the investment partners as the
basis for its analyses, forecasts and assessments relating to its
own business; the satisfaction of each party's obligations in
accordance with the terms of investment agreements; fluctuations in
the price of cannabis products; the Company's relationship with
Canopy Rivers; general business, economic and competitive
uncertainties; market risks; and other risks contained in the
Company's annual information form dated June
28, 2017 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 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 included in this news release is made
as of the date of this news release and the Company does not
undertake an obligation to publicly update such forward-looking
information to reflect new information, subsequent events or
otherwise unless required by applicable securities legislation.
SOURCE Canopy Growth Corporation