CANOPY RIVERS CLOSES OVERSUBSCRIBED $26 MILLION FINANCING VIA PRIVATE PLACEMENT – HomeTown TV12
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CANOPY RIVERS CLOSES OVERSUBSCRIBED $26 MILLION FINANCING VIA PRIVATE PLACEMENT

CANOPY RIVERS CLOSES OVERSUBSCRIBED $26 MILLION FINANCING VIA PRIVATE PLACEMENT
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Smiths Falls – Canopy Growth Corporation (“Canopy Growth”) (TSX:WEED) is pleased to announce that its partly owned subsidiary, Canopy Rivers Corporation (“Canopy Rivers”) has closed a non-brokered private placement offering of 23,636,363 Class B common shares (the “Shares”) at a price of $1.10 per Share. Pursuant to the offering, Canopy Rivers raised aggregate gross proceeds of approximately $26 million.  Canopy Growth subscribed for 4,673,938 Shares for $5,141,331.80.

“Canopy Rivers has efficiently allocated the initial capital and quickly established an attractive portfolio of diversified investments including licensed producers, late stage
applicants, ancillary product developers, and industry leading brands,” says Bruce Linton, CEO of Canopy Growth & Chairman of Canopy Rivers.

Founded in April 2017, Canopy Rivers was formed to complete streaming deals to flow product through Canopy Growth’s platform and diversify supply channels to satisfy the needs of Canada’s largest group of cannabis customers. As the Canopy Rivers leadership team evaluated the landscape and identified additional deal potential, a more robust business model matured to complement streaming activities. Today, Canopy Rivers has a portfolio of diversified investments and represents a balanced mix of equity, debt, royalty and profit sharing investment structures.

“Our team has curated a tier one group of complimentary but unique investee companies in a short period of time,” said Sean McNulty, Co-founder of Canopy Rivers. “We have pioneered a series of offtake and strategic support programs and efficiently leveraged the resources of Canopy Growth’s cannabis production and distribution platform in a way that creates long term value for our investors.”

Canopy Growth controls the majority voting rights in Canopy Rivers and holds an approximate 30% equity stake on a non-diluted basis. The balance of Canopy Rivers shares are held by strategic partners and private investors, including members of both Canopy Growth and Canopy Rivers who participated in this funding round.

“The cannabis investment landscape continues to become more crowded and difficult for investors to track, evaluate, and differentiate. Canopy Rivers offers its investors financial exposure to a funnel of domestic and international opportunities, with both private and public companies, in risk-mitigated structures that are typically not prevalent in conventional financial markets. This funnel is filtered, evaluated, and scrutinized by a team of financial and legal professionals, and ultimately vetted by the largest and most sophisticated cannabis company in the world. We are in the infancy of this globally emerging industry and our pipeline of opportunities has never been more robust,” says Peter Hatziioannou, Co-founder of Canopy Rivers.
Proceeds of the private placement will be used to provide growth capital in various forms, including but not limited to, the purchase of a right to cannabis production, royalty
transactions and other strategic investments in or providing financing for companies either licensed to produce cannabis or companies that have applied, or are in the process of applying, for a license to produce cannabis as well as for working capital and general corporate purposes. Rivers is committed to exclusively investing and supporting firms operating in federally legal jurisdictions.

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