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Canopy Rivers Announces Significant Contract Manufacturing Agreement Between Portfolio Partners PharmHouse and TerrAscend
TORONTO, Oct. 15, 2018 (GLOBE NEWSWIRE) — Canopy Rivers Inc. (“Canopy Rivers” or the “Company”) (TSXV:RIV) is pleased to announce PharmHouse Inc. (“PharmHouse”), has entered into an offtake agreement (the “Agreement”) to supply TerrAscend Canada Inc. (“TerrAscend Canada”), a wholly-owned subsidiary of TerrAscend Corp. (“TerrAscend”) (CSE:TER), with cannabis products from 20% of the flowering space at its 1.3 million square foot greenhouse facility until December 31, 2021.
Both PharmHouse and TerrAscend are substantial pillars in the Canopy Rivers’ investment portfolio, and this Agreement represents a de-risking milestone for each company. Leveraging the anticipated throughput and low cost of production from the PharmHouse facility positions TerrAscend Canada with a sizeable source of dried flower and trim for packaging, processing, and distribution throughout the TerrAscend logistics platform without the need for considerable capital expenditures. For PharmHouse, the Agreement provides increased sales visibility and financial de-risking for a significant portion of the expected production from its flagship facility.
We are seeing promising synergies develop within the Canopy Rivers portfolio. We set out to create an ecosystem of complementary cannabis companies that can strategically support one another. This collaborative Agreement between PharmHouse and TerrAscend Canada demonstrates our commitment to provide more than just growth capital to our partners.
Bruce Linton, Chairman and Acting CEO of Canopy Rivers, and co-CEO of Canopy Growth Corporation
Through the unique access to Canopy Growth, we continue to develop an environment that encourages and supports synergy and mutually advantageous opportunities for value creation across the entire Canopy Rivers platform.
The PharmHouse joint venture, of which Canopy Rivers owns 49%, operates out of approximately 1.3 million square feet of newly built greenhouse infrastructure under glass in Leamington, Ontario. Canopy Rivers, along with the joint venture partners are actively upgrading and supplementing the facility in preparation for licensing. With this Agreement in place, and pending the receipt of a cultivation licence from Health Canada, PharmHouse has orders for an aggregate 30% of the flowering space at its facility until December 31, 2020.
Fostering opportunities for collaboration throughout the Canopy Rivers ecosystem is a key element and differentiator in the Company’s value proposition. This Agreement is another great example of the portfolio partners leveraging their respective areas of specialization within the cannabis value chain in a manner that is financially and operationally beneficial for all parties.
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.
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