JWC's Proprietary Production Platform to
Launch At Commercial Scale
TORONTO, April 1, 2019 /CNW/ - Canopy Rivers Inc.
("Canopy Rivers" or the "Company") (TSXV: RIV) is
pleased to share that its portfolio company, James E. Wagner
Cultivation Corporation ("JWC") (TSXV: JWCA) (OTCQX: JWCAF),
has received its cultivation licence from Health Canada for its
Kitchener-based commercial scale production facility
("JWC2"). This second licence launches the initial phase of
JWC2, a 345,000 square foot production and distribution complex
where JWC is rolling out more than 130 individual production rooms
utilizing JWC's proprietary GrowthSTORM™ Dual Droplet cultivation
platform and methodologies. With the newly licenced facility
located just minutes from JWC's already licenced pilot facility,
JWC is well-positioned for an efficient ramp-up and expects to
commence cannabis production at JWC2 immediately.
"While optimizing production methodologies at their already
licenced pilot facility, JWC has concurrently built out and
implemented refinements and learnings for production at commercial
scale," said Daniel Pearlstein, EVP,
Strategy, of Canopy Rivers. "We are pleased to see Health Canada
reward JWC for the quality of their operations, and their
disciplined approach to expansion with the issuance of this second
site licence."
Canopy Rivers believes that JWC's multigenerational cannabis and
hemp experience, its unique and proprietary production
methodologies, and its disciplined and de-risked path to scale
makes JWC a strong constituent within the Canopy Rivers ecosystem.
After making its initial investment in 2017, the Company has
continued to support JWC and currently holds approximately 13% of
the issued and outstanding common shares in the capital of JWC on a
fully-diluted basis. Additionally, Canopy Rivers receives a
long-term royalty cash flow stream from JWC with a minimum annual
payment of approximately $488,000.
The royalty has a term of 20 years.
"We have seen strong demand for standardized, quality-controlled
indoor cannabis within both the medical and adult use cannabis
markets," continued Pearlstein. "Until now, JWC has focused on
delivering an exceptional experience to a concentrated population
of patients and through Canopy Growth's Spectrum Cannabis online
store. With this second site licence in hand and the expanded
production facility now online, JWC is well-positioned to bring
their premium quality-controlled cannabis products to patient and
consumer markets on a much larger scale."
For more information regarding the Company's investment in JWC,
please refer to 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. For additional information about JWC, please refer
to JWC's profile on SEDAR or their website at www.jwc.ca.
About Canopy Rivers:
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 Corporation (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.
Forward-Looking Statements
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 Canopy Rivers 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 strength of JWC in the Canopy Rivers
ecosystem; JWC's ability to bring their cannabis
products to patient and consumer markets on a much larger scale;
and other expectations for other economic, business, and/or
competitive factors.
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 Canopy Rivers 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 Canopy Rivers. 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; JWC's ability to
cultivate cannabis at scale; the ability of JWC to obtain a licence
to sell cannabis under applicable legislation in Canada; the ability to secure distribution and
sales channels; changes in general economic, business and political
conditions, including changes in the financial markets; the global
regulatory landscape and enforcement related to cannabis, including
political risks and risks relating to regulatory change; risks
relating to anti-money laundering laws; compliance with extensive
government regulation; public opinion and perception of the
cannabis industry; and the risk factors set out in Canopy Rivers'
final short form prospectus dated February
21, 2019, filed with Canadian securities regulators and
available on Canopy Rivers' 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 Canopy Rivers 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. Canopy Rivers 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.
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SOURCE Canopy Rivers Inc.
