Canopy Rivers in­creases own­er­ship in Ital­ian hold­ing

Stockwatch Daily - - CONSUMER GOODS - Mr. Olivier Du­four­man­telle re­ports

CANOPY RIVERS Inc. has in­creased its own­er­ship stake in Cana­paR Corp., the Cana­dian par­ent cor­po­ra­tion of Cana­paR SrL, an Ital­ian-based or­ganic hemp pro­duc­tion and pro­cess­ing plat­form. The in­vest­ment, which in­creases the com­pany’s own­er­ship po­si­tion to 49.9 per cent, builds upon Canopy Rivers’ in­ter­na­tional ex­pan­sion strat­egy and po­si­tions the com­pany to cap­i­tal­ize on the ex­pected growth in d eman d fo r can na b is a nd 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, $17.4-mil­lion to be in­vested in Cana­paR Canada in two tranches as part of a planned $25-mil­lion non-bro­kered pri­vate place­ment. The in­vest­ment will re­sult in the com­pany in­creas­ing its own­er­ship po­si­tion from ap­prox­i­mately 35.0 per cent to 49.9 per cent 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 devel­op­ment of the global cannabis mar­ket, de­mand for prod­ucts that con­tain nat­u­ral ac­tive in­gre­di­ents de­rived from plant ex­tracts have in­creased sig­nif--

icantly. 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 Mr. 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 part­ner ship with a lo cal agron­omy-fo­cused aca­demic in­sti­tu­tion, and ad­vance the devel­op­ment of our brands and prod­ucts in the emerg­ing CBD cat­e­gories,” con­tin­ued Mr. 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 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.

We seek Safe Har­bor.

John K Bell, Asha Daniere, Bruce Lin­ton, Richard P Mavrinac, Joseph Mim­ran

(RIV) Shares: 171,270,254

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