This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

The S&P/TSX Cannabis Index added 3.71 to 160.33, while the CSE Composite Index lost 3.62 to 680.84. Getting an early start on its New Year's weight loss resolution, Canopy Rivers Inc. (RIV), down three cents to $1.17 on 637,400 shares, is shedding its 49-per-cent interest in Canapar for $9-million. Canapar is an Italy-based maker and processor of CBD oil and isolates.

The investment in Canapar has not been a winner for Canopy Rivers. SEDAR filings show that Canopy Rivers amassed its 29.8 million shares of Canapar from July, 2018, to February, 2019, paying a total of $18.15-million -- shares that it is now selling for just $7-million plus $2-million in contingent milestone payments. Canopy Rivers grumbled about "regulatory and market challenges [that] have caused significant delays in Canapar's timeline for commercialization."

President and chief executive officer Narbe Alexandrian tried to find a happier spin. Canopy Rivers is "turn[ing] a new page," he declared, and the Canapar sale "represents an important reallocation of capital as we adjust our go-forward investment strategy." By new page, Mr. Alexandrian was referring to last week's announcement that Canopy Rivers is effectively cutting ties with Canopy Growth Corp. (WEED: $31.32), which had created Canopy Rivers in 2017 as its venture capital arm. Canopy Rivers will now be free to pursue its own investment interests rather than those that complement Canopy Growth (though it will pay a price for this freedom, transferring various portfolio interests including its successful investment in Terrascend Corp. (TER: $12.70)).

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS