Canopy Rivers (TSXV: RIV) this morning announced its
completion of an equity investment in Headset, Inc., a data and analytics
service provider for the cannabis industry. Representing its first entry into a
technology-focused cannabis vertical, Canopy Rivers subscribed for CAD
$4,084,500 of Series A Preferred Shares in Headset. In addition, the company
recently announced that its 49 percent-owned joint venture PharmHouse Inc. has
entered into a syndicated credit facility with the Bank of Montreal (“BMO”), as
agent and lead lender, and with Canadian Imperial Bank of Commerce and
Concentra Bank as lenders. According to the update, under the credit facility,
the lenders will provide up to CAD $80 million of secured debt financing to
PharmHouse over a 3-year term with a rate of interest that is expected to
average in the mid-to-high 5 percent per annum range. The company intends to
allocate the funds to finalize the acquisition of the 1.3 million square foot
modern greenhouse facility, as well as toward necessary project equipment and
ongoing construction costs in ramp up of the production and distribution
platform.
“We are proud to be entering the new year with a significant
financial development for PharmHouse, a joint venture we consider
well-positioned to pursue the increasingly global cannabis opportunity,” Canopy
Rivers Chairman and Chief Executive Officer Bruce Linton stated in the news
release. “Having secured what we believe to be the largest bank debt to a
private company in the cannabis industry, one that is supported by a syndicate
of three Schedule I banks, PharmHouse has gained substantial momentum. We
believe the commitment made by these leading Canadian financial institutions
demonstrates confidence in PharmHouse and sheds meaningful light on the quality
of the infrastructure, the level of expertise of the joint venture partners,
and the anticipated significant near-term cash flow of this platform.”
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 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. For more
information, visit the company’s website at www.CanopyRivers.com.
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