Canopy Growth to Inject $30 Million in Additional Capital into Canopy Rivers

Canopy Growth (TSX:WEED) has announced it will increase its investment into Canopy Rivers (TSXV:RIV) by C$30 million.

As quoted in the press release:

The investment will be made through a private placement of subordinated voting shares in the capital of Canopy Rivers (the “Subordinate Voting Shares”) 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%. Increasing its ownership position is a signal of Canopy Growth’s ongoing confidence in Canopy Rivers’ mission to pursue strategic opportunities in the global cannabis sector.

Click here to read the full press release.