“This is a transformative transaction for our company that we believe provides substantial value to our shareholders through an enhanced cash position and strategic flexibility, and the collapse of our dual class share structure," said Canopy Rivers CEO Narbe Alexandrian.
“Following the closing of the transaction, we intend to shift our focus to pursuing other opportunities in the global cannabis market.”
Canopy Rivers said the implied total transaction value of the deal is $297 million. The company said it will change its name to reflect the split from Canopy Growth. The pot giant’s members on the Canopy Rivers board will also resign.
If the transaction is approved, Canopy Rivers said it may de-list from the Toronto Stock Exchange in order to pursue investment opportunities in the U.S. market that run afoul of rules around ownership of U.S. cannabis assets.
Speaking with Yahoo Finance Canada in September 2019, Alexandrian said “Canada is pretty much played out” with respect to investment opportunities in new licenced producers.