Canopy Rivers Inc. (“
Canopy Rivers”) (TSXV: RIV)
and LeafLink, Inc. (“
LeafLink”) are pleased to
announce the establishment of LeafLink Services International ULC
(“
LeafLink International”), a new venture that
exclusively licenses and leverages LeafLink’s dominant
business-to-business (B2B) marketplace and supply chain technology
platform for deployment throughout regulated international cannabis
markets.
LeafLink is a software-as-a-service (SaaS)
marketplace that simplifies the supply chain through its e-commerce
platform. The company has a growing network of more than 950
cannabis brands, and penetration throughout ~2,800 cannabis
retailers across 16 territories in the United States. LeafLink has
established the single largest B2B marketplace for cannabis brands
and facilitates more than US$900 million in gross merchandise value
annually. Retailers use LeafLink for managing their wholesale
inventory, enabling them to shop multiple vendors in one cart, view
up-to-date product and brand menus, review historical and open
orders, discover new products, and request samples. LeafLink
further serves vendors by offering supplementary tools such as
order management, a customer relationship management (CRM)
platform, inventory tracking tools, and customized reporting
systems, among other services.
“We have been very impressed with LeafLink’s
deep market penetration and their understanding of cannabis
companies’ needs and behaviors,” said Narbé Alexandrian,
President of Canopy Rivers. “The number of brands and products
within our new cannabis economy has been explosive, making it
difficult for retailers to deal with multiple parties in an
increasingly fragmented market. As regulated cannabis consumption
and distribution proliferates around the world, LeafLink
International will introduce the industry’s leading SaaS-enabled
marketplace to the global stage to create a new standard for
expediting the cannabis supply chain in regulated markets.”
By creating this new joint venture, Canopy
Rivers continues to expand its exposure across the cannabis value
chain through a capital-light, market-leading B2B platform that is
immediately scalable across legal jurisdictions. Canopy Rivers
intends to integrate its network of complementary cannabis
companies and global reach to drive growth for LeafLink
International and assist in developing and deploying this
technology as it continues to increase its global footprint.
“We are excited to join forces with Canopy
Rivers – combining our industry-leading, B2B marketplace technology
with their expertise and strategic network in the global cannabis
market,” said Ryan G. Smith, CEO and Co-founder of LeafLink.
“Together, we are creating the first seamless e-commerce experience
across the global cannabis supply chain to further empower members
of the LeafLink community.”
Under the terms of the agreement, LeafLink has
made an initial capital commitment of US$1 million along with an
exclusive, royalty-free license for all non-US marketplaces for
their proprietary B2B software platforms and service solutions.
Canopy Rivers has committed an initial equity investment of US$2
million and has the option to invest an incremental US$6 million on
preferred terms. LeafLink and Canopy Rivers hold approximately 82%,
and 18%, respectively, of LeafLink International after the initial
transaction. Both parties will work collaboratively on the
continued development and deployment of the LeafLink technology
platform throughout international marketplaces, having already
launched in select Canadian markets.
About LeafLink:
LeafLink is the cannabis industry’s leading
wholesale marketplace, serving more than 950 brands and
~2,800 retailers across 16 territories with streamlined
business tools such as an order management system, CRM, inventory
tracking, and reporting systems, among others. Retailers who
previously called, emailed, or texted dozens of sales
representatives to place orders now save one day per week shopping
all their cannabis brands in one LeafLink cart. Backed by venture
capital firms and strategic investors such as Lerer Hippeau, Nosara
and Casa Verde Capital, LeafLink has raised more than US$14 million
to date, with its headquarters in New York City and Los
Angeles.
About Canopy Rivers:
Canopy Rivers is a unique investment and
operating platform structured to pursue investment opportunities in
the emerging global cannabis sector. Canopy Rivers works
collaboratively with Canopy Growth (TSX: WEED, NYSE: CGC) to
identify 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 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 ability of
LeafLink International to launch its SaaS marketplace platform
globally and create a new standard for expediting the cannabis
supply chain in regulated markets; the scalability of LeafLink’s
B2B platform; Canopy Rivers’ ability to integrate its network of
complementary cannabis companies and global reach to drive growth
for LeafLink International and assist in developing and deploying
this technology as it continues to increase its global footprint;
both parties will work collaboratively on the continued development
and deployment of the LeafLink technology platform throughout
international marketplaces; and other expectations for other
economic, business, and/or competitive factors.
Investors are cautioned that forward-looking
information is not based on historical facts 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 number of
brands and retailers adopting LeafLink’s e-commerce platform;
competition in the B2B supply chain space; the ability of LeafLink
and Canopy Rivers to collaborate; 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’ final short form prospectus dated February 21,
2019, filed with 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 which 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.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
For further information, please
contact:
Canopy Rivers Inc.
Karoline Hunter Sr. Director, Investor Relations
& Communications E-mail: ir@canopyrivers.com
LeafLink Rosie Mattio RMPR E-mail:
Rosie@rosiemattiopr.com
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