Globe says Canopy Growth hopes investors dip into River
2018-09-21 08:18 ET - In the News
See In the News (C-WEED) Canopy Growth Corp
The Globe and Mail reports in its Friday edition that Canopy Growth is listing shares of its sister firm Canopy Rivers on the TSX Venture Exchange. The Globe's Christina Pellegrini writes that Canopy Growth co-chief executive officer Bruce Linton is also the acting CEO of Rivers. Canopy River invests in other companies in the pot industry and taps the expertise of Canopy Growth in production, plant genetics, retailing and branding. In return, Canopy Growth gets access to product it can sell through its craft channel and the right to do a deal with the portfolio company in the future. Canopy Growth owns 25 per cent of Canopy Rivers, but controls almost 90 per cent of the votes through a dual-class share structure that would thwart hostile takeover bids from succeeding. Canopy Rivers makes investments through a mix of equity, debt, royalty, joint ventures and income-sharing structures. The royalty, for example, includes a per-gram fee with a minimum yearly payment for a handful of cannabis growers in its portfolio, generating cash flows. By not putting all of its eggs in one basket, Canopy Rivers says it reduces the risk that lower yields, crop failures, delays or recalls could have on its potential returns.
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