Ever since cannabis were legalized in Canada and in parts of the United States, a range of companies have since come up that are engaged in making a mark in the industry. One of the biggest names in the cannabis industry is Toronto based Canopy Rivers, which is involved in investment in the sector and has steadily become a highly influential player.
Canopy Rivers, Inc. (CVE:RIV) (OTCMKTS:CNPOF) had its initial public offering on 12 October last year and although it has continued to wield influence, the stock price has fared poorly. The shares have lost 20% till date and are now trading at $4.59 CAD, down from the listing price of $5.70 CAD. The company is a part of Canopy Growth, which is a cannabis conglomerate.
Recent Developments
In a recent development, Canopy Rivers made an investment of $1.5 million in New Zealand based agriculture company Biolumic. The company has built a sustainable system that is supposed to enhance crop yield and could prove to be a significant acquisition as cannabis production continues to rise. According to an executive at Canopy Rivers, the precisions UV treatments that is used by Biolumic’s technology could prove to be a game changer in the long run and farmers might actually have use pesticides and fertilizers to improve their yield.
However, that is not all. Earlier this month, Canopy Rivers’ portfolio company PharmaHouse struck an agreement with its parent company Canopy Growth to supply a pre-agreed volume of cannabis every year. Canopy Growth will be supplied with cannabis to the tune of 25,000 kilos to 45,000 kilos ever year and additionally, it will be able to use around one fifth of the flowering space at PharmaHouse’s facilities for three years. Despite the poor performance from the Canopy Rivers stock, the company is making significant deals at a regular basis.
Last but not the least, Canopy Rivers’ deal making capabilities has made it possible for it to become a significant player in the cannabis industry. One of its portfolio companies Headset struck and agreement with Nielsen Holdings in March, by way of which data about the US cannabis market is going to be provided to consumer packaged goods companies. All these deals go to show that despite the stock’s poor performance, Canopy Rivers is on the right track.
