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RIV Capital Inc CNPOF


Primary Symbol: C.RIV

RIV Capital Inc. is a Canada-based acquisition and investment company. The Company is focused on the United States (U.S.) cannabis market by acquiring, investing in, and developing operators and brands to create a multistate platform. The Company is a direct parent company of RIV Capital US Corporation and RIV Capital Corporation and exercises financial control over Etain, LLC. Through its strategic relationship with The Hawthorne Collective, Inc. (The Hawthorne Collective), a subsidiary of The ScottsMiracle-Gro Company (ScottsMiracle-Gro), the Company is The Hawthorne Collective's preferred vehicle for cannabis-related investments not under the purview of other ScottsMiracle-Gro subsidiaries. The Company's subsidiaries include 2683922 Ontario Inc., RIV Capital US Corporation, RIV Capital US Holdings LLC, RIV Capital US Real Estate LLC and RIV Capital US Services LLC.


CSE:RIV - Post by User

Post by proneon Feb 04, 2019 6:08pm
233 Views
Post# 29317679

Canopy Rivers - Investment and Bought Deal Financing

Canopy Rivers - Investment and Bought Deal Financing
From Canopy Growth and Bought Deal Financing for Total Gross Proceeds of $85 Million

TORONTO, Feb. 04, 2019 (GLOBE NEWSWIRE) -- Canopy Rivers Inc. ... is pleased to announce that it has entered into an agreement with CIBC Capital Markets and Eight Capital,  the “Joint Bookrunners”), under which the Joint Bookrunners have agreed to purchase, together with a syndicate of underwriters, 11,500,000 subordinated voting shares of the Company (the “Subordinated Voting Shares”) on a “bought deal” basis at a price of $4.80 per Subordinated Voting Share (the “Issue Price”) for gross proceeds of approximately $55.0 million (the “Bought Deal”).

Concurrent with the Bought Deal, Canopy Growth Corporation (“Canopy Growth”), the Company’s largest shareholder, will purchase a minimum of 6,250,000 Subordinated Voting Shares on a private placement basis,

at a price per Subordinated Voting Share equal to the Issue Price (the “Private Placement” and together with the Bought Deal, the “Offering”) for additional gross proceeds of a minimum of approximately $30.0 million.

Canopy Growth currently owns approximately 26.5% of the issued and outstanding shares of the Company on a non-diluted basis and has elected to subscribe under the Private Placement for more than its pro rata participation right. Following completion of the Offering (prior to giving effect to the Over-Allotment Option (as defined below)), Canopy Growth’s ownership interest in the Company will increase to approximately 27.3% of the issued and outstanding shares of the Company on a non-diluted basis. The combined gross proceeds to the Company under the Offering will be a minimum of approximately $85 million.

The Company has agreed to grant the Underwriters an over-allotment option (the “Over-Allotment Option”) to purchase up to an additional 1,725,000 Subordinated Voting Shares at the Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the Closing Date (as defined below).

If this option is exercised in full, an additional approximately $8.3 million will be raised pursuant to the Bought Deal, the aggregate gross proceeds of the Bought Deal will be approximately $63.3 million, and the combined gross proceeds to the Company under the Offering will be a minimum of approximately $93.3 million.

The Company intends to use the net proceeds from the Offering for follow-on investments in existing portfolio companies, new domestic and international investments, working capital and general corporate purposes.

Closing of the Offering is scheduled to be on or about February 27, 2019 (the “Closing Date”).....

....

Canopy Growth controls a majority of the voting rights in Canopy Rivers and holds approximately 26.5% of the issued and outstanding shares of the Company on a non-diluted basis.

Canopy Growth’s participation in the Private Placement (the “Insider Participation”) will be considered to be a “related party transaction” within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”)....

About Canopy Rivers

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 (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.

Contact:

Karoline Hunter
Sr. Director, Investor Relations & Communications
Email: ir@canopyrivers.com
(
416) 583-5947

Daniel Pearlstein
Executive Vice President, Strategy
Email: daniel@canopyrivers.com
(647) 475-1115

 


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