TORONTO, June 22, 2020 /PRNewswire/ - Dynaleo Inc.
("Dynaleo"), the most recent addition to Canopy Rivers
Inc.'s ("Canopy Rivers") (TSX: RIV) (OTC: CNPOF) portfolio
of disruptive cannabis companies, has received its Standard
Processing Licence from Health Canada. This follows the completion
and commissioning of Dynaleo's 27,000 square foot purpose-built
facility, and is a key milestone as it aims to ramp up production
of white label gummies for the Canadian recreational market.
Dynaleo plans to develop and close on its existing customer
pipeline that includes licensed producers and traditional consumer
packaged goods companies.
"We are thrilled with the momentum at Dynaleo," said Narbé
Alexandrian, President and CEO, Canopy Rivers. "Data shows that the
total addressable market for edibles, and specifically gummies,
remains large. Licensed producers haven't yet been able to scale
their production to meet consumer demand for this product category,
and brand loyalty has not yet been achieved the same way we have
seen in mature U.S. markets for similar products. We believe that
Dynaleo will be a key partner in manufacturing gummies brands that
will be leaders in the 2.0 market."
"We believe our purpose-built, industrial scale facility can
bring the volume needed to keep our partner's brands in stock on a
national basis," said Michael
Krestell, Executive Chairman, Dynaleo. "Like our partners at
Canopy Rivers, we see a significant gap between consumer demand and
industry supply and we believe we are well positioned to help fill
it."
Canopy Rivers invested in Dynaleo in April 2020. Based on Dynaleo's current ownership,
and assuming conversion of Canopy Rivers' convertible debenture and
exercise of its warrants, Canopy Rivers' ownership interest in
Dynaleo will be approximately 12%.
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 Canopy Rivers and its portfolio companies 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: Dynaleo's plans to ramp up production of
white label gummies for the Canadian recreational market and to
develop and close on its existing customer pipeline; the expected
size of the edibles and gummies markets; management's belief that
Dynaleo will be a key partner in manufacturing gummies brands that
will be leaders in the 2.0 market; Dynaleo's belief that its
facility can bring the volume needed to keep its partner's brands
in stock nationally; Dynaleo's belief that there is a significant
gap between demand and supply and that Dynaleo is well positioned
to help fill it; Canopy Rivers' ownership interest in Dynaleo; and
expectations for other economic, regulatory, 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 Canopy Rivers 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 Canopy Rivers. 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; changes in Dynaleo's
plans and its actual production capacity and ability to develop and
close on its customer pipeline; changes in cannabis industry growth
and trends; changes in the anticipated or actual market size for
edibles and gummies; changes in consumer preferences and demands;
changes in general economic, business and political conditions,
including challenging global financial conditions and the impact of
the novel coronavirus pandemic; potential conflicts of interest;
the regulatory landscape and enforcement related to cannabis,
including political risks and risks relating to regulatory change;
changes in Canopy Rivers' relationship with Dynaleo; 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 Canopy Rivers' interpretation of
such regulation; public opinion and perception of the cannabis
industry; divestiture risks; competition risks; and the risk
factors set out in Canopy Rivers' annual information form dated
June 2, 2020, filed with the Canadian
securities regulators and available on Canopy Rivers' 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 Canopy Rivers 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. Canopy Rivers does not intend, and does not assume any
obligation, to update this forward-looking information except as
otherwise required by applicable law.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/canopy-rivers-portfolio-company-dynaleo-receives-health-canada-licence-301081252.html
SOURCE Canopy Rivers Inc.