Expecting Green in Power hour soon. The case for Canopy Rivers
Canopy Rivers is a distinct entity from Canopy Growth. The two stocks are traded separately. The companies have different boards of directors. And they focus on different aspects of the cannabis market, with Canopy Rivers' mission centered on providing capital for cannabis businesses.
But Canopy Rivers and Canopy Growth are nonetheless joined at the hip. Canopy Growth remains the largest shareholder of Canopy Rivers and recently upped its ownership to more than 27% of the spinoff. Canopy Rivers' CEO is Bruce Linton, who also happens to be the co-CEO and chairman of the board for Canopy Growth.
The relationship to Canopy Growth is what sets Canopy Rivers apart from other cannabis investment companies. Small cannabis businesses looking for capital know that Canopy Rivers brings more than just money to the table. It brings a connection to the biggest marijuana producer in the world in terms of market cap and global reach.
Investors who buy Canopy Rivers stock get more than just a tie to Canopy Growth, though. They benefit from a diversified portfolio of investments made by Canopy Rivers that could pay off over the long run.
Canopy Rivers' portfolio currently includes 14 companies that span the cannabis supply chain. Two of the company's most recent deals are an equity investment in Herbert, which focuses on the Canadian adult-use cannabis beverage and edibles market, and a debt financing deal with Greenhouse Juice Company, a plant-based food and beverage company that's expanding its focus to include developing CBD-infused beverages.
Unlike most marijuana stocks, Canopy Rivers has reported positive net income in three out of its last four quarters. A recent deal added around $93.5 million Canadian (roughly US$70 million) to its coffers to use in investing in additional cannabis businesses that could drive future growth.