Canopy Growth Corp. is injecting an additional $30 million in its cannabis investment arm Canopy Rivers, bringing the pot producer’s ownership in the firm up 0.8 percentage points to 27.3 per cent.
The deal will see Canopy Rivers raise $85 million between Smiths Falls’ Canopy Growth and a $55-million private placement round, underwritten by CIBC Capital Markets and Eight Capital. An over-allotment option could increase the private placement by $8.3 million, resulting in gross proceeds of $93.3 million.
Canopy Rivers intends to use the additional capital to increase the firm’s stake in its current portfolio as well as to explore new options in Canada and abroad, according to the Feb. 4 press release. The firm has been expanding its portfolio already in a diverse set of sectors, including data analytics, health and wellness beverages, and hemp.
OBJ360 (Sponsored)
![A business man at the airport.](https://assets.obj.ca/2024/06/FlightHub-20240624_094212_0000-300x169.jpg)
Travel smart: Four ways FlightHub offers budget-friendly business travel solutions
Canadians know that flying domestically is a challenge due to our small population, spread out across a vast space — and that it can make business travel an even bigger
![uOttawa Faculty of Engineering](https://assets.obj.ca/2024/06/Engineering-20240624_114812_0000-300x169.jpg)
uOttawa’s Faculty of Engineering is filling skill gaps in the tech industry
University of Ottawa’s Faculty of Engineering has been preparing for this moment for years, proactively adapting its curriculum to meet the evolving demands of the technology sector and the Ottawa
In a Feb. 7 release, founder and co-CEO of Canopy Growth Bruce Linton said the strengthened relationship between the two firms will be beneficial for both shareholders and Canopy Growth, which is currently the largest pot producer in Canada.
The deal is expected to close on or around Feb. 27.