Canopy Growth intends to increase its total investment in Canopy Rivers by $30 million (CDN). The investment will be made through a private placement of subordinated voting shares in the capital of Canopy Rivers concurrent with Canopy Rivers bought deal offering of Subordinate Voting Shares for gross proceeds of approximately $55 million. This investment is being co-led by CIBC Capital Markets and Eight Capital and is expected to close on or about February 27, 2019.
“The advantage of a strengthened Canopy Rivers/Canopy Growth relationship is that it accelerates and derisks execution for invested companies,” said Bruce Linton, Founder and Co-CEO, Canopy Growth. “The strength of the Canopy Rivers team, coupled with their selective approach to business development and execution of strategic investments, creates value for shareholders and for Canopy Growth.”
“By increasing Canopy Growth’s investment in Canopy Rivers, we are demonstrating our interest in growing great companies, developing selective opportunities and delivering Canopy’s shareholders more growth,” added Linton.
After the closing of the bought deal and concurrent private placement, Canopy Growth will increase its ownership of Canopy Rivers’ issued and outstanding shares, including both the Subordinate Voting Shares and the multiple voting shares in the capital of Canopy Rivers that are only held by Canopy Growth, on a non-diluted basis from approximately 26.5% to approximately 27.3%.
Canopy Rivers has recently expanded its portfolio by making several innovative investments in the cannabis market worldwide, including:
- An equity interest in Headset, a real-time data and analytics company;
- Financing of Greenhouse Juice Company, a health and wellness beverage company; and
- Increasing its ownership in Canapar, an Italy-based hemp production and processing platform capitalizing on the rapidly expanding European CBD market.
These planned investments will allow Canopy Rivers to focus on making strategic investments, in cannabis and cannabis-adjacent markets, and increasing its partners’ chances of success by layering on strategic support from its team of industry leaders.
For more information:
Canopy Growth
1 Hershey Dr.
Smiths Falls, Ontario
K7A 0A8
1 855 558 9333 x 122
[email protected]
www.canopygrowth.com