Canopy Growth signs deal valued at $297M to give up stake in Canopy Rivers
by The Canadian Press
Last Updated Dec 21, 2020 at 10:44 am EDT
SMITHS FALLS, Ont. Canopy Growth Corp. has signed a deal valued at $297 million that will see it give up its ownership in Canopy Rivers Inc., which it established as a venture capital firm to invest in the cannabis sector.
Under the agreement, Canopy Growth will receive exchangeable shares, warrants and debt in TerrAscend Corp., increasing its direct conditional ownership to 21 per cent from 13 per cent.
Canopy Growth will also increase ownership in Quebec greenhouse joint venture Vert Mirabel to 67 per cent from 41 per cent.
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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.
Canopy Growth Corp (NYSE: CGC) reported Monday it s giving up on its interest in Canopy Rivers Inc. (TSX: RIV) (PINK: 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.. Read More. Don t Miss Any Updates! News Directly in Your Inbox Subscribe to: