Canopy Rivers has made a preferred investment of $1.5 million in Herbert, a Toronto-based adult-use cannabis beverage and edibles brand.
As part of the deal, Canopy received incremental warrants entitling it to increase the stake, as well as governance-related rights.
Founded last year by principals of Greenhouse, Herbert’s core beverage offering will focus on tetrahydrocannabinol-infused products designed for distribution within Canada.
Earlier this month, Canopy, the venture capital arm of Canadian cannabis producer Canopy Growth Corp, invested $9 million in Greenhouse, a Toronto-based maker of plant-based beverage products.
Canopy Rivers Announces Investment in Adult-Use Cannabis Beverage and Edibles Brand
TORONTO, Jan. 22, 2019 (GLOBE NEWSWIRE) — Canopy Rivers Inc. (the “Company” or “Canopy Rivers”) (TSXV:RIV) is pleased to announce it has completed an equity investment in 10663522 Canada Inc., or “Herbert” (“Herbert”), a unique brand platform that focuses on the adult-use cannabis beverage and edibles market. Canopy Rivers subscribed for C$1,500,000 of preferred shares in Herbert, and received incremental warrants entitling the Company to increase its economic interest in Herbert under certain circumstances, as well as other governance-related rights.
“Herbert represents an opportunity for Canopy Rivers to be invested at a very early stage in a company focused on the adult-use cannabis beverage and edible product segment,” said Narbe Alexandrian, President of Canopy Rivers. “In the US, cannabis-infused beverages have emerged as a high-growth segment within the ingestibles category, and include a variety of products in both THC- and CBD-dominant formats. In Canada, we expect similar growth beyond dried flower and oils, into food and beverage. Canopy Rivers believes that Herbert, equipped with existing R&D, marketing and manufacturing expertise, has the ability to enter this market quickly and achieve success in creating widely appealing THC-infused beverages and edibles under this new standalone brand.”
“We are thrilled to be partnering with Canopy Rivers, one of the most progressive players in the global cannabis sector,” said Lee Reitelman, Co-Founder and Director of Marketing at Herbert. “We believe cannabis offers a range of experiences to consumers, and we look forward to unlocking that potential for a wider audience. We see the beverage category as especially well-suited for the delivery of cannabis, in providing a convenient, consistent, fast-acting, low-sugar alternative to conventional edible products. As Herbert seeks out new frontiers in the THC-infused functional food and beverage landscape, we are looking forward to being able to leverage Canopy Rivers’ diverse platform of innovative cannabis ventures to achieve our goals.”
Herbert’s mission is to combine advanced technology with its knowledge and appreciation of the experience-enhancing properties of cannabis, creating products specifically designed around consumers’ many lifestyle needs. The company’s core beverage offering will focus primarily around THC-infused products designed for distribution within Canada. Established by certain principals of Greenhouse Juice Company (“Greenhouse”), Herbert will, through a supply arrangement with Greenhouse, leverage Greenhouse’s existing purpose-built, food-grade and GMP-compliant production and processing facility, one of the most sophisticated of its kind in North America. On January 14, 2019, Canopy Rivers announced a convertible debt financing in Greenhouse, a dynamic plant-based food and beverage company with a new focus on creating CBD-infused products.
About Canopy Rivers Inc.
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.
For further information, please contact:
Canopy Rivers Inc.
Sr. Director, Investor Relations & Communications
Executive Vice President, Strategy