Topic: How To Invest

Q: Hello, Patrick. Is Canopy Rivers Inc. (RIV) a stock worth considering as a buy? Thanks.

Article Excerpt

A: Canopy Rivers, $4.68, symbol RIV on the Toronto Venture Exchange (Shares outstanding: 171.3 million; Market cap: $924.4 million; www.canopyrivers.com), is the venture capital arm of cannabis producer Canopy Growth (symbol WEED on Toronto). Canopy Rivers first began trading on September 20, 2018. The company got its listing through a reverse takeover of a shell company. So far, Canopy Rivers has made about a dozen Canadian and international investments, which include licensed marijuana producers, cannabis oil extractors and retail networks. The company aims to hold a diversified basket of cannabis firms across a range of geographic regions. For example, it recently invested in the Greenhouse Juice Company, a plant-based food and beverage producer. Canopy Rivers has committed to an investment of $9 million in a convertible debt financing package that includes secured and unsecured debt, warrants to buy shares, and representation on Greenhouse’s board of directors. Proceeds from this financing will be used to supplement the food company’s national expansion and the…