Canopy Rivers Portfolio Company Receives Milestone Health Canada Licence Amendment

TORONTO, Oct. 15, 2019 /PRNewswire/ - Canopy Rivers ("Canopy Rivers") (TSX: RIV, OTC: CNPOF), a venture capital firm specializing in cannabis, today announced that its portfolio company James E. Wagner Cultivation Corporation ("JWC") (TSXV: JWCA, OTCQX: JWCAF) received a Health Canada licence amendment allowing for cannabis production in four new flowering rooms at its flagship facility in Kitchener, Ontario.

"We believe that this licence amendment demonstrates Health Canada's recognition of JWC, the quality of its operations, and its disciplined approach to expansion," said Olivier Dufourmantelle, Chief Operating Officer, Canopy Rivers. "Through its supply agreement with TerrAscend, JWC has an active role in the Canopy Rivers ecosystem. We've seen that companies that work together, thrive together, and we think this Health Canada approval will enable JWC to increase production and further collaborate within the Canopy Rivers ecosystem."

The additional flowering rooms are part of an ongoing program to expand JWC's existing production capacity. At full-scale, the facility will measure 345,000 square feet. Like the previously licensed space, the newly licensed areas will be equipped with JWC's proprietary GrowthSTORMtm Dual Droplettm System. GrowthSTORMtm is an aeroponic method that sees plant roots suspended in the air and misted at regular intervals using specified nutrient solutions adapted for the system. When combined with the GrowthSTORMtm Management system, this method delivers a precise cultivation technique with the ability to collect and analyze data to continually deliver consistent, high-quality cannabis. More information on GrowthSTORMtm can be found on JWC's website.

Once fully operational, the new flowering rooms will double the facility's current licensed production capacity from 22,000 square feet, to approximately 44,500 square feet. The additional spaces are composed of two pods, each consisting of two flowering rooms, with each room containing approximately 5,500 square feet of cultivation space.

About Canopy Rivers

Canopy Rivers is a venture capital firm specializing in cannabis. Its unique investment and operating platform is structured to pursue investment opportunities in the emerging global cannabis sector. Canopy Rivers identifies 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 Corporation (TSX: WEED, NYSE: CGC) 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.

Forward-Looking Statements

This news release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Canopy Rivers with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding: the impact of the licence amendment on JWC's production capacity; the size of JWC's full-scale facility and JWC's intention to equip the newly licenced areas with the GrowthSTORMtm Dual Droplettm System; management's belief that this Health Canada approval will enable JWC to increase production and further collaborate within the Canopy Rivers ecosystem; and expectations for other economic, business, and/or competitive factors.

Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Canopy Rivers believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of Canopy Rivers. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; the actual impact of the licence amendment on JWC's production capacity and ability to collaborate within the Canopy Rivers ecosystem; changes in JWC's plans with respect to its facility and the newly licenced areas; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; risks relating to anti-money laundering laws; compliance with extensive government regulation; public opinion and perception of the cannabis industry; and the risk factors set out in Canopy Rivers' annual information form dated July 15, 2019, filed with the Canadian securities regulators and available on Canopy Rivers' profile on SEDAR at www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Canopy Rivers has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Canopy Rivers does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

SOURCE Canopy Rivers Inc.