Launching ZeaKal's Transformative
PhotoSeed™ Technology in Cannabis
TORONTO and SAN DIEGO, June 19,
2019 /CNW/ - Canopy Rivers Inc. ("Canopy Rivers", the
"Company") (TSXV: RIV) (OTC: CNPOF) and ZeaKal, Inc.
("ZeaKal") are pleased to announce an investment and
strategic collaboration between Canopy Rivers and ZeaKal, a
California-based plant science
innovator with proprietary technologies that sustainably increase
photosynthesis, improve plant yield and enhance nutritional
profiles for a variety of agricultural crops. The investment from
Canopy Rivers marks another significant corporate milestone this
calendar year for ZeaKal, following the February announcement of
its R&D collaboration (link) with Corteva Agriscience (NYSE:
CTVA), the recently spun-out and NYSE-listed agricultural science
division of DowDuPont.
ZeaKal's proprietary technology, PhotoSeed™, increases a plant's
intrinsic photosynthetic capacity, meaning that PhotoSeed™ plants
can convert more sunlight and carbon dioxide into energy for
growth. This results in substantial improvement in seed and grain
yield, as well as improved macronutrient profiles that drive an
increase in both oil and protein content. For farmers, this means
better productivity and profit margins; for consumers, this means
higher nutritional profiles and an environmentally friendly way to
meet growing global demand. With multi-year field trials
across diverse plant species in the
United States, Canada and
New Zealand, the initial
commercial focus has been on major row crops. Following Canopy
Rivers' investment, ZeaKal intends to expand its program to include
cannabis and hemp.
"Our investment in ZeaKal, the fifth consecutive international
transaction for Canopy Rivers, builds on our thesis of selecting
globally scalable and innovative processes, products, and
technologies from complementary industries, and applying them to
the cannabis and hemp economy," said Mary
Dimou, Director of Business Development at Canopy Rivers.
"Plant sciences is a mostly overlooked but absolutely critical
segment of the cannabis and hemp value chain, and we are seeking to
address this gap with this investment. ZeaKal's technology has
already realized success across a number of crops during field
trials, and these are crops that have been commercialized for
decades. The application of this innovative technology throughout
the Canopy Rivers portfolio and the cannabis and hemp industry at
large could be a game changer."
Canopy Rivers believes that ZeaKal's PhotoSeed™ technology has
the potential to translate into significant benefits for the
cannabis and hemp industry. Due to prohibition, the cultivation of
cannabis and hemp has lacked the agricultural research and
advancements that have significantly improved the cultivation of
other crops. Canopy Rivers believes that applying ZeaKal's
PhotoSeed™ technology to cannabis and hemp represents a significant
step forward - with increased crop yield, higher oil production,
additional grow cycles, and enriched cannabinoid output numbering
among the potential benefits of the technology. While trials on
cannabis and hemp have yet to begin, the positive results already
achieved give Canopy Rivers confidence in ZeaKal's experienced team
and its ability to successfully optimize and adapt its technology
for expansion into this industry.
"We are elated that Canopy Rivers, a cannabis and hemp industry
authority, has selected ZeaKal as an agriculture partner," said
Han Chen, Chief Executive Officer of
ZeaKal. "Beyond the capital, it is further validation that
PhotoSeed™ is a next-generation blockbuster trait that can be
utilized across diverse industries. With its rich domain and
technical expertise, Canopy Rivers is supporting our entry into the
cannabis and hemp markets with a technology we expect to be
transformative for the sector."
As a result of its US$10,000,000
investment, Canopy Rivers owns approximately 8.7% of ZeaKal on a
fully diluted basis and holds an observer seat on ZeaKal's board of
directors.
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.
About ZeaKal:
ZeaKal is a plant science company
developed from the incubation pipeline of Kapyon Ventures in
partnership with AgResearch Ltd. The company is focused on
developing, PhotoSeed™, a next-generation trait technology that has
been proven to increase the photosynthetic capacity and yield of
several major crops.
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 application and benefits of
ZeaKal's PhotoSeed™ technology for a variety of crops and
industries, including cannabis and hemp; the expansion of ZeaKal's
program to include cannabis and hemp; ZeaKal's team and its ability
to optimize and adapt the PhotoSeed™ technology for cannabis and
hemp; the impact of ZeaKal's PhotoSeed™ technology on
Canopy Rivers' portfolio, the cannabis and hemp industry, farmers
and consumers; Canopy Rivers' investment
thesis; and other expectations regarding 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; the actual
application and benefits of ZeaKal's PhotoSeed™ technology; changes
in ZeaKal's program; the performance of ZeaKal's team and its
ability to optimize and adapt the PhotoSeed™ technology for
cannabis and hemp; the actual impact of ZeaKal's PhotoSeed™
technology on Canopy Rivers' portfolio, the cannabis and hemp
industry, farmers and consumers; the ability of ZeaKal and Canopy
Rivers to collaborate; opportunities for investment by Canopy
Rivers; 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.