Canopy Growth Corporation announced last month that it has launched its first-in-class Craft Grow program that allows access to genetics, knowledge, and retail infrastucture to strategic partners.
The newly formed company, Canopy Rivers Corporation will operate as a joint venture with Canopy Growth and will provide growth capital and strategic support to selected partners in exchange for a contracted stream of future cannabis production.
The company has committed $20 million in seed capital funding for this new company so that it can provide financial support to ACMPR applicants and existing licensed producers.
Canopy Growth is the global market leader in the cannabis industry. Canopy Rivers operates as a seperate entity and will be operated and supported by a lean executive suite comprised of members from Canopy Growth’s industry leading executive and professional support network.
“As new companies pursue opportunities in the sector, accessing capital and successfully navigating the stringent regulatory environment continues to be critical gating items for many. Canopy Rivers helps to fill that void with a less costly and less dilutive way to foster the cannabis ecosystem of both boutique and commercial scale operators. Consumers benefit from a more diverse collection of producers and products; and companies get access to an alternative source of capital that comes with a lifeline to tap for support if they need it. Canopy Rivers gets to build and maintain a steady supply of cannabis at a predictable cost, and Canopy Growth gets access to an increased outlet for wholesale supply and differentiated products. This platform creates a mutually beneficial way to support industry growth,” says Bruce Linton, Chief Executive Officer of Canopy Growth.
Disclaimer: We have no position in Canopy Growth Corp (TSE: WEED) and have not been compensated for this article.