The Interesting Case of Canopy Rivers Inc (OTCMKTS:CNPOF)

The Interesting Case of Canopy Rivers Inc (OTCMKTS:CNPOF)

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One interesting name to keep an eye on right now is Canopy Rivers Inc (OTCMKTS:CNPOF). This is the spin-off from CGC a while back and represents what effectively amounts to the cannabis venture capital arm of the project (which could contain a great deal of the long-term value, and deserves a closer look). To help put some fresh meat on the bone, the company just announced that it formally congratulates its portfolio company TerrAscend Corp. (CSE:TER) (OTCQX:TRSSF) on its announcement that it has received an amendment to its license from Health Canada allowing for the sale of cannabis oils from its facility in Mississauga, Ontario.

According to the release, “Sales of TerrAscend’s cannabis oils are set to begin immediately through its medical marketplace, Solace Health. This news comes two months following TerrAscend’s announcement that it had been issued a Good Manufacturing Practice (GMP) certificate in accordance with the rules governing medical products in the European Union, in conjunction with establishing a sales and distribution agreement with iuvo Therapeutics GmbH, a German pharmaceutical wholesaler.”

Canopy Rivers Inc (OTCMKTS:CNPOF) trumpets itself as 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.

According to company materials, “The Company is managed by an experienced team of qualified financial and technical professionals with deep industry experience and relationship networks; but what makes Canopy Rivers truly unique is the Company’s strategic partnership and cornerstone investment from Canopy Growth Corporation (TSX:WEED, NYSE:CGC). Canopy Rivers works collaboratively with Canopy Growth to identify strategic counterparties seeking financial and/or operating support and affiliation with the Canopy Growth group of companies. The result is an ecosystem of complementary companies operating throughout the cannabis value chain. As the portfolio continues to develop, each constituent benefits from opportunities to collaborate with Canopy Growth and among themselves, which the company believes results in an ideal environment for innovation, synergy, and value creation for Canopy Rivers, Canopy Growth, and across the entire Rivers ecosystem.”

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As noted above, CNPOF just announced that its portfolio company TerrAscend Corp. (CSE: TER) (OTCQX:TRSSF) has received an amendment to its license from Health Canada allowing for the sale of cannabis oils from its facility in Mississauga, Ontario.

Traders will note 9% tacked on to share pricing for the company in the past week. Furthermore, the company has registered increased average transaction volume recently, with the past month seeing 15% beyond its prior sustained average level.

“With another key milestone achieved by TerrAscend in a matter of a few short months, the company continues to demonstrate its ambition to become a global provider of pharmaceutical-grade cannabis products,” said Narbe Alexandrian, President and CEO of Canopy Rivers. “Cannabis oil is gaining popularity in Canada, the US and in other emerging global medical markets, and this sales license enables TerrAscend to meet growing demand for non-combustible cannabis products.”

Earning a current market cap value of $354.5M, CNPOF has about $47M in cash on the books, which is balanced by about $2.3M in total current liabilities. The company pursues a very strange and unorthodox path in presenting its financials, which seems like a bit of gut-feeling red flag in its own right: they apparently refuse to report revenue data, opting instead to skip straight to operating income. But the data overall still looks positive at this stage. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $CNPOF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $CNPOF, either long or short, and we have not been compensated for this article.

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