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TORONTO, Jan. 22, 2019 (GLOBE NEWSWIRE) -- Canopy Rivers Inc. (the “Company” or “Canopy Rivers”) (RIV.V) is pleased to announce it has completed an equity investment in 10663522 Canada Inc., or “Herbert” (“Herbert”), a unique brand platform that focuses on the adult-use cannabis beverage and edibles market. Canopy Rivers subscribed for C$1,500,000 of preferred shares in Herbert, and received incremental warrants entitling the Company to increase its economic interest in Herbert under certain circumstances, as well as other governance-related rights.
“Herbert represents an opportunity for Canopy Rivers to be invested at a very early stage in a company focused on the adult-use cannabis beverage and edible product segment,” said Narbe Alexandrian, President of Canopy Rivers. “In the US, cannabis-infused beverages have emerged as a high-growth segment within the ingestibles category, and include a variety of products in both THC- and CBD-dominant formats. In Canada, we expect similar growth beyond dried flower and oils, into food and beverage. Canopy Rivers believes that Herbert, equipped with existing R&D, marketing and manufacturing expertise, has the ability to enter this market quickly and achieve success in creating widely appealing THC-infused beverages and edibles under this new standalone brand.”
“We are thrilled to be partnering with Canopy Rivers, one of the most progressive players in the global cannabis sector,” said Lee Reitelman, Co-Founder and Director of Marketing at Herbert. “We believe cannabis offers a range of experiences to consumers, and we look forward to unlocking that potential for a wider audience. We see the beverage category as especially well-suited for the delivery of cannabis, in providing a convenient, consistent, fast-acting, low-sugar alternative to conventional edible products. As Herbert seeks out new frontiers in the THC-infused functional food and beverage landscape, we are looking forward to being able to leverage Canopy Rivers’ diverse platform of innovative cannabis ventures to achieve our goals.”
Herbert’s mission is to combine advanced technology with its knowledge and appreciation of the experience-enhancing properties of cannabis, creating products specifically designed around consumers’ many lifestyle needs. The company’s core beverage offering will focus primarily around THC-infused products designed for distribution within Canada. Established by certain principals of Greenhouse Juice Company (“Greenhouse”), Herbert will, through a supply arrangement with Greenhouse, leverage Greenhouse’s existing purpose-built, food-grade and GMP-compliant production and processing facility, one of the most sophisticated of its kind in North America. On January 14, 2019, Canopy Rivers announced a convertible debt financing in Greenhouse, a dynamic plant-based food and beverage company with a new focus on creating CBD-infused products.
About Canopy Rivers Inc.
Canopy Rivers is a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. Canopy Rivers works collaboratively with Canopy Growth (TSX: WEED, NYSE: CGC) to identify strategic counterparties seeking financial and/or operating support. Canopy Rivers 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 Canopy Rivers believes will maximize value for its shareholders and foster an environment of innovation, synergy and value creation for the entire ecosystem.
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. 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 growth of the cannabis-infused beverage and edibles segment; the consumer shift into cannabis food and beverage; Herbert’s ability to enter the market quickly and achieve success backed by the research and development, marketing and manufacturing expertise of Greenhouse; Herbert’s distribution plans; Herbert’s ability to create products designed around consumers’ needs; Canopy Rivers as a progressive player in the cannabis sector; cannabis offering a wide range of experiences; the beverage category being well-suited for the delivery of cannabis; the ability of Herbert to leverage the Canopy Rivers platform; and other expectations for other economic, business, and/or competitive factors.
Investors are cautioned that forward-looking information is not based on historical facts 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. 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 in the cannabis food and beverage market; the ability of Herbert to distribute in Canada; the popularity of cannabis food and beverages; Canopy Rivers’ platform; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; changes in research related to cannabis and cannabis related products; risks relating to anti-money laundering laws; compliance with extensive government regulation; public opinion and perception of the cannabis industry; as well as the risk factors set out in the joint management information circular of Canopy Rivers Corporation and the Company dated August 8, 2018, filed with Canadian securities regulators and available on the Company’s issuer 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 which 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Canopy Rivers Inc.
Sr. Director, Investor Relations & Communications
Executive Vice President, Strategy