NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
TORONTO, Dec. 06, 2018 (GLOBE NEWSWIRE) — Canopy Rivers Inc. (the “Company” or “Canopy Rivers”) (TSXV: RIV) is pleased to announce that it has increased its ownership stake in CanapaR Corp. (“CanapaR Canada”), the Canadian parent corporation of CanapaR SrL (“CanapaR Italy”), an Italy-based organic hemp production and processing platform. The investment, which increases the Company’s ownership position to 49.9%, builds upon Canopy Rivers’ international expansion strategy and positions the Company to capitalize on the expected growth in demand for cannabis and CBD derivative products in the rapidly growing European cannabis market.
“We are thrilled with the progress that has been made to date at CanapaR and believe the team is ideally positioned with a European platform,” said Olivier Dufourmantelle, Chief Operating Officer of Canopy Rivers. “With a population of more than 60 million people, Italy is one of the largest cannabis markets in Europe and we are confident that CanapaR will succeed within that market.”
The Company has committed, through its wholly-owned subsidiary, $17,400,000 to be invested in CanapaR Canada in two tranches as part of a planned $25,000,000 non-brokered private placement. The investment will result in the Company increasing its ownership position from approximately 35.0% to 49.9% of the issued and outstanding common shares of CanapaR Canada on a non-diluted basis.
CanapaR Italy is a Sicily-based manufacturer and processor of CBD oil and isolates and is playing an important role in the development and commercialization of Italy’s CBD and hemp industry through its partnership with the University of Catania’s Department of Agriculture. CanapaR Italy’s outsource farming model and academic partnership provide the Company with a low-cost source of organic CBD oil, which is increasingly used as an input into new commercial products in the health and wellness industries. The company is also focused on advancements in CBD extraction capabilities, which will assist in the production of these organic oils and isolates for practical implementation and use in consumer products. Leveraging the pedigree of its founder and leading executives, CanapaR Italy has also recently initiated the development of CBD-infused cosmetics, skincare, and beauty products for the Italian cosmetics market, which is the fourth largest such market in Europe, as well as the global market, which provides strong demand for Italian brands. Along with the ongoing development of the global cannabis market, demand for products that contain natural active ingredients derived from plant extracts have increased significantly. CanapaR Italy plans to seize this market opportunity with a line of “Made in Italy” CBD-infused products.
CanapaR Canada and CanapaR Italy are led by Chief Executive Officer Sergio Martines, who brings extensive international experience in the pharmaceutical, dermo-cosmetic and nutritional fields, with approximately 30 years of experience in the development and commercialization of consumer products.
“Along with the growing global demand for cannabis, we are seeing increased demand for innovative CBD and cannabinoid-infused natural health and skincare products,” said Martines. “CanapaR Italy will benefit from its collaboration with Canopy Rivers and we are very pleased with their follow-on investment. Access to the unique and synergistic benefits of Canopy Rivers’ platform allows CanapaR Italy to collaborate with experienced operators, optimize its extraction and wholesaling operations, accelerate its partnership with a local agronomy-focused academic institution, and advance the development of our brands and products in the emerging CBD categories,” continued Martines.
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 international growth strategy of Canopy Rivers; the expected growth in demand for cannabis derivative products; the rapid growth of the global cannabis market; expectations regarding the business of CanapaR Italy; the development and commercialization of hemp in Italy; the ability of CanapaR Italy to utilize extraction capabilities for the production of organic CBD oil; CanapaR Italy’s ability to generate low-cost, high yield sources of organic CBD oil; the use of CBD oil in new commercial products; the benefits to CanapaR Italy from its involvement with Canopy Rivers and its ecosystem of cannabis operating companies; the benefits derived from CanapaR Italy’s partnership with the Department of Agriculture at the University of Catania; the improved farming processes resulting from CanapaR Italy’s partnership with the Department of Agriculture at the University of Catania; the increasing demand for cannabis-derived products in Italy and the growing global demand for innovative and unique cannabis products; the benefits of the Italian regulatory landscape; CanapaR Italy’s ability to seize the CBD-infused product market opportunity; and Canopy Rivers’ ability to evaluate new global opportunities. 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; demand for cannabis derivative products in Italy; the Italian regulatory framework for the cultivation of hemp and production of CBD oil; demand for Italian derived brands; lack of control over operations; compliance with laws; changes in laws, regulations and guidelines; competition; CanapaR Italy’s need for additional financing; the difficulty to forecast accurately; cannabis prices; challenging global financial conditions; litigation; government regulation; operating risks involved in the cannabis industry; the ability to attract customers; constraints on marketing; risks inherent in agricultural businesses; product recalls; product liability; reliance on partners; reliance on key inputs; and dependence on suppliers and skilled labour; changes in general economic, business and political conditions, including changes in the financial markets; potential conflicts of interest; the Canadian regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; and 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 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