TORONTO, Nov. 19, 2018 (GLOBE NEWSWIRE) — Canopy Rivers Inc. (“Canopy Rivers” or the “Company”) (TSXV:RIV) congratulates its portfolio company, Radicle Medical Marijuana Inc. (“Radicle”), on receiving its production and sales licence from Health Canada. The licence will allow Radicle to supply and sell finished cannabis products for both the medical and adult-use market in Canada.
First licensed for cultivation in early 2018, Radicle’s 140,000 square foot indoor facility located in Hamilton, ON is focused on small-batch cultivation of unique genetic strains using proprietary and sustainable growth methods. In August 2018, Radicle was one of the original twenty-six licensed cannabis producers selected in a highly competitive product call by the Ontario Cannabis Store for recreational sale online and one of two entities selected despite only having a licence to cultivate at the time. Radicle recently launched Gage Cannabis Co., a new premium brand in the craft cannabis segment.
“We are very proud to be part of the Radicle story,” said Daniel Pearlstein, EVP Strategy at Canopy Rivers. “This latest milestone marks a new and exciting chapter for Radicle and strengthens our confidence in their commitment to deliver premium, small-batch, handcrafted cannabis.”
Canopy Rivers first invested in Radicle in August 2017. The grant of the sales licence has triggered the conversion of Canopy Rivers’ convertible debenture into approximately 24% of the fully diluted issued and outstanding common shares of Radicle. Further, Canopy Rivers’ repayable debenture has been automatically set-off against consideration otherwise payable entitling Canopy Rivers to a royalty interest 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 joint management information circular (the “Circular”) of Canopy Rivers Corporation and the Company dated August 8, 2018, filed with Canadian securities regulators and available on the Company’s profile on SEDAR at www.sedar.com.
About Canopy Rivers Inc.
The Company is a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. The Company works collaboratively with Canopy Growth (TSX: WEED, NYSE: CGC) to identify strategic counterparties seeking financial and/or operating support. The Company 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 and collaborate among themselves, which the Company believes will maximize value for its shareholders and foster an environment of innovation, synergy and value creation for the entire ecosystem.