Canopy Rivers Announces Completion of $17 Million Financing for Its Italian Hemp Platform – Canapar
TORONTO, Feb. 04, 2019 (GLOBE NEWSWIRE) — Canopy Rivers Inc. (the “Company” or “Canopy Rivers”) (TSXV: RIV) is pleased to announce that it has completed a subsequent $9.4 million equity investment in its portfolio company Canapar Corp. (“Canapar Canada”), the Canadian parent corporation of Canapar SrL (“Canapar Italy”), an Italy-based organic hemp production and processing platform. The investment aligns with the Company’s global-focused growth strategy and is expected to provide the Company with the opportunity to capitalize on the rapidly expanding European cannabidiol (“CBD”) market.
In December 2018, the Company committed to an investment of $17,400,000 in Canapar Canada as part of a $25,000,000 non-brokered private placement. The investments in Canapar Canada have increased the Company’s ownership position from 35% to 49%, on a non-diluted basis.
As previously disclosed, Canapar Italy is a Sicily-based manufacturer and processor of CBD oil and isolates, which are increasingly used as an input into new commercial products in the health and wellness industries. Canapar Italy has secured more than 1,000 hectares of hemp through its outsource farming model and entered into an academic partnership with the University of Catania’s Department of Agriculture. The company is also advancing its CBD extraction and processing capabilities through its new facility and is expecting to transform 600 metric tons of hemp biomass annually into CBD isolates and derivative products for distribution in Europe. With demand for products that contain natural active ingredients derived from plant extracts increasing significantly, Canapar Italy plans on developing 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 “Made in Italy” brands.
Canopy Rivers’ investment in Canapar represents a clear validation of our ability to execute on our strategy and the market opportunity in Europe. We expect to leverage this financing to enhance value for all stakeholders in Canapar and we look forward to a long-term partnership with Canopy Rivers.
Sergio Martines, CEO of Canapar Italy
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.