Canopy Rivers' Flagship Joint Venture PharmHouse Increases Bank Debt Facility by $10 Million

TORONTO, April 16, 2020 /CNW/ - Canopy Rivers Inc. ("Canopy Rivers" or the "Company") (TSX: RIV, OTC: CNPOF) today announced that PharmHouse Inc. ("PharmHouse"), its 49%-owned joint venture in Leamington, Ontario, amended its syndicated credit facility ("Credit Facility") with the Bank of Montreal ("BMO"), as the agent and lead lender, and the Canadian Imperial Bank of Commerce and Concentra Bank (together with BMO, the "Lenders"). The amended terms of the Credit Facility (the "Amendment") provides PharmHouse with an additional $10 million of secured debt financing, representing an increase to the Credit Facility that was initially announced in January 2019.

"This incremental debt financing, which comes at a time of significant constraint in capital markets generally, is a testament to the momentum that our joint venture has been building for the past two years," said Eddie Lucarelli, Chief Financial Officer, Canopy Rivers. "We believe that it signifies the growing confidence that leading financial institutions have in the quality of the cultivation platform that has been built, the expertise of our partners, and PharmHouse's long-term role in the global cannabis sector."

Pursuant to the Amendment and as part of the increase to the Credit Facility, the date that required principal repayments under the Credit Facility are to begin was pushed out one year to March 31, 2021. Additional amendments include an increase to interest rate spreads of 25 basis points and an increase to the Company's limited guarantee by $10 million, commensurate with the increase to the Credit Facility.

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 portfolio.

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 and its portfolio companies 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  management's belief that the Amendment is a testament to the momentum of the joint venture and that it signifies the growing confidence of financial institutions in the quality of PharmHouse's cultivation platform, the expertise of the Company's partners and PharmHouse's long-term role in the global cannabis sector, and expectations for other economic, regulatory, 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 or its portfolio companies. 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; changes in the business and financial condition of PharmHouse; changes in the strategic relationship between Canopy Rivers and its partners; changes in cannabis industry growth and trends; changes in consumer preferences and demands; 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, including Canopy Rivers' interpretation of such regulation; public opinion and perception of the cannabis industry; divestiture risks; 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.