Canopy Rivers (TSX.V: RIV) (OTC: CNPOF) 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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