Canopy Rivers Enhances European Platform With Further Investment in Italy
TORONTO, Dec. 06, 2018 (GLOBE NEWSWIRE) — Canopy Rivers Inc. (the “Company” or “Canopy Rivers”) (TSXV: RIV) is pleased to announce that it has increased its ownership stake in CanapaR Corp. (“CanapaR Canada”), the Canadian parent corporation of CanapaR SrL (“CanapaR Italy”), an Italy-based organic hemp production and processing platform. The investment, which increases the Company’s ownership position to 49.9%, builds upon Canopy Rivers’ international expansion strategy and positions the Company to capitalize on the expected growth in demand for cannabis and 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 . 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.
Olivier Dufourmantelle, Chief Operating Officer of Canopy Rivers
The Company has committed, through its wholly-owned subsidiary, $17,400,000 to be invested in CanapaR Canada in two tranches as part of a planned $25,000,000 non-brokered private placement. The investment will result in the Company increasing its ownership position from approximately 35.0% to 49.9% 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 ongoing development of the global cannabis market, demand for products that contain natural active ingredients derived from plant extracts have increased significantly. 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. CanapaR Italy will benefit from its collaboration with Canopy Rivers and we are very pleased with their follow-on investment.
Sergio Martines, CEO of CanapaR
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 partnership with a local agronomy-focused academic institution, and advance the development of our brands and products in the emerging CBD categories.
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 (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.