Rivers Shareholders Approve Plan of Arrangement with Canopy Growth
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Rivers or the
Company ) (TSX: RIV) (OTC: CNPOF) is pleased to announce that its shareholders voted today to approve the previously announced plan of arrangement (the
Arrangement ) involving Canopy Growth Corporation (
Canopy Growth ) (TSX: WEED) (NASDAQ: CGC).
Approximately 99.87% of the votes cast by Rivers shareholders were voted in favour of the Arrangement, including approximately 99.85% of the votes cast by Rivers shareholders other than Canopy Growth, whose votes were required to be excluded pursuant to Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special Transactions. Approval was required from at least (i) two-thirds of the votes cast by the holders of Subordinated Voting Shares (
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Canopy Rivers Inc. (TSX:RIV) (OTC:CNPOF).
The Toronto-based cannabis-focused venture capital firm opted to transfer three of its portfolio assets to Canopy Growth.
Rivers will obtain $115 million in cash and 3.75 million of Canopy Growth s common shares in exchange. In addition, the Canadian cannabis giant agreed to cancel all 36,468,318 Multiple Voting Shares and the 15,223,938 Subordinate Voting Shares of Rivers it held.
Transaction Details
Under the arranged agreement, Canopy Growth will increase its fully-diluted conditional ownership in TerrAscend Corp. (OTCQX:TRSSF) to 21% by acquiring roughly 12.5 million of its exchangeable shares; around 2,23 million of its common shares purchase warrants at $5.95 per share; 333,723 of its common share purchase warrants at $6.49 per share; and a $13.2 million loan receivable that TerrAscend Canada Inc. owns to Rivers wholly-owned subsidiary Canopy Rivers Corporation.