Bid reflects management’s view that company is undervalued, belief in future growth
TORONTO, March 31, 2020 /PRNewswire/ – Canopy Rivers Inc. (“Canopy Rivers” or the “Company“) (TSX:RIV) (OTC: CNPOF), a venture capital firm specializing in cannabis, announces that the Toronto Stock Exchange (“TSX“) has accepted the notice of Canopy Rivers’ intention to commence a normal course issuer bid (the “NCIB“). The NCIB reflects management’s position that the current share price does not reflect the Company’s underlying value and future prospects.
“With our strong cash position, launching the NCIB gives us the flexibility to purchase back our stock,” said Narbé Alexandrian, President & CEO, Canopy Rivers. “However, we continue to have a robust deal pipeline and maintain our focus on making investments that we believe will generate value for our shareholders.”
The NCIB allows the Company to purchase up to 10,409,961 subordinated voting shares (the “Subordinated Voting Shares“) of the Company (representing 10% of the Company’s current public float (as such term is defined in the TSX Company Manual)) over a period of 12 months commencing on April 2, 2020. The NCIB will expire on April 1, 2021. The Company currently has 155,676,025 issued and outstanding Subordinated Voting Shares.
All purchases made pursuant to the NCIB will be made through the facilities of the TSX or alternative Canadian trading systems. In accordance with TSX rules, any daily purchases (other than pursuant to a block purchase exemption) on the TSX under the NCIB are limited to a maximum of 70,653 Subordinated Voting Shares, which represents 25% of the average daily trading volume of Subordinated Voting Shares on the TSX for the period beginning on September 9, 2019 and ending on February 29, 2020, being an average of 282,613 Subordinated Voting Shares per day during the period.
Canopy Rivers has entered into a pre-defined plan with a broker in accordance with applicable Canadian securities laws to allow for the repurchase of Subordinated Voting Shares at times when the Company ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise.
The actual number of Subordinated Voting Shares that may be purchased and the timing of such purchases will be determined by the Company. Decisions regarding purchases will be based on market conditions, share price, best use of available cash, and other factors. Any Subordinated Voting Shares that are purchased under the NCIB will be cancelled.
About Canopy Rivers:
Canopy Rivers is a venture capital firm specializing in cannabis. Its unique investment and operating platform is structured to pursue investment opportunities in the emerging global cannabis sector. Canopy Rivers identifies 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 Corporation (TSX: WEED, NYSE: CGC) 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 portfolio.
This news release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Canopy Rivers with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding: the Company’s intention with respect to purchases pursuant to the NCIB; management’s belief in the Company’s underlying value and future prospects; the Company’s focus on making investments that management believes will generate shareholder value; and expectations for other economic, business, and/or competitive factors.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Canopy Rivers believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of Canopy Rivers. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in the Company’s plans with respect to purchases pursuant to the NCIB; changes in the Company’s focus and its ability to generate shareholder value; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; risks relating to anti-money laundering laws; compliance with extensive government regulation, including Canopy Rivers’ interpretation of such regulation; public opinion and perception of the cannabis industry; divestiture risks; and the risk factors set out in Canopy Rivers’ annual information form dated July 15, 2019, filed with the Canadian securities regulators and available on Canopy Rivers’ profile on SEDAR at www.sedar.com.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Canopy Rivers has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Canopy Rivers does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
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SOURCE Canopy Rivers Inc.