Dec 21, 2020 (NetworkNewsWire via COMTEX) -- Canopy Rivers , a venture capital firm specializing in cannabis, on Friday provided an update on its 49%-owned joint venture, PharmHouse Inc. Per the update, on Oct. 29, 2020, PharmHouse received a court order from the Ontario Superior Court of Justice to initiate a sale and investment solicitation process ("SISP") to identify interest in, and opportunities for, a sale of, or investment in, all or part of PharmHouse's assets or business. This may include a restructuring, recapitalization, or other form of reorganization of PharmHouse's business and affairs. Phase one of the SISP concluded on Nov. 30, 2020, and a number of non-binding offers were received. PharmHouse, with the assistance of the monitor and the SISP advisor, has selected a number of parties to bring forward to the next phase of the SISP, and binding offers for phase two are due on or about Feb. 16, 2021.
In addition, Canopy Rivers today announced its entry into a definitive agreement with Canopy Growth Corporation /zigman2/quotes/202205609/delayed CA:WEED +0.19% /zigman2/quotes/200603886/composite CGC -1.39% pursuant to which, among other things, Canopy Rivers will transfer three portfolio assets to Canopy Growth in exchange for $115 million in cash and 3,750,000 common shares of Canopy Growth and the cancellation of all 36,468,318 Multiple Voting Shares ("MVS") and the 15,223,938 Subordinate Voting Shares ("SVS") of Canopy Rivers held by Canopy Growth (collectively, the "transaction"). On closing, the transaction will result in Canopy Rivers becoming a widely-held company and will unlock substantial value, providing it with significant additional cash resources and allowing it to pursue opportunities in the global cannabis market, including the United States. "This is a transformative transaction for our company that we believe provides substantial value to our shareholders through an enhanced cash position and strategic flexibility, and the collapse of our dual class share structure," said Narbe Alexandrian, president and CEO of Canopy Rivers. "Following the closing of the transaction, we intend to shift our focus to pursuing other opportunities in the global cannabis market, where we believe that our new strategic focus and substantial balance sheet will allow us to successfully execute our revamped strategic plan."
About Canopy Rivers Inc.
Canopy Rivers is a venture capital firm specializing in cannabis with a portfolio of 18 companies across various segments of the cannabis value chain. The company believes that bringing together people, capital and ideas raises the potential of the entire cannabis industry. By leveraging industry insights, in-house expertise and thesis-driven approach to investing, Canopy Rivers aims to provide shareholders exposure to specialized and disruptive cannabis companies. Canopy Rivers' mission is to invest in innovators across the cannabis value chain, help them grow, and ultimately create value by guiding these companies towards a monetization event. Together with its portfolio, the company is helping build the cannabis industry of tomorrow, today. For more information, visit www.CanopyRivers.com .
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