Canopy Growth Corporation (CGC) is spinning off its venture capital investment arm called Canopy Rivers Corporation. The company has set September 12, 2018 as the date for a shareholder meeting regarding the proposed combination of Canopy Rivers and AIM2 Ventures.
It had been previously announced that Canopy Rivers had entered into an agreement with AIM2 resulting in a reverse take-over of AIM2 by Canopy Rivers. The transaction is expected to close during the week of September 17, 2018 subject to the approval by the TSX Venture Exchange. The new symbol will be RIV.
“With Canopy Rivers, we are well-positioned to take advantage of the universe of investment opportunities unfolding globally in the ever-expanding cannabis economy,” said Bruce Linton, Chairman and acting CEO of Canopy Rivers, and co-CEO of Canopy Growth. “The strategic relationship with Canopy Growth, strong management and access to capital will enable Canopy Rivers to build upon a proven track record and continue to develop a leading ecosystem of cannabis companies across the entire cannabis value chain.”
According to the company statement, Canopy Rivers has made investments in eleven domestic and international companies, establishing a diversified portfolio of licensed producers, late-stage producer applicants, pharmaceutical formulators, brand developers and distributors, retail networks, and technology and media platforms.
The statement also said that the net proceeds from Canopy Rivers’ $104 million subscription receipt financing are expected to be released from escrow in connection with the closing of the Go Public Transaction. The oversubscribed private placement, which was co-led by CIBC Capital Markets, GMP Securities L.P., and Eight Capital, on behalf of a syndicate of agents including Cormark Securities Inc., INFOR Financial Inc. and PI Financial Corp., closed on July 6, 2018.
Canopy Rivers will be appearing on a panel at the Green Market Summit on Sept. 14, 2018, in New York City at the One World Trade Center. The company will be discussing the challenges of international cannabis companies.