Canopy Rivers Stock Tumbles On Q2 Results

Canopy Rivers Inc. RIV CNPOF posted a second-quarter net loss of CA$4.41 million ($3.3 million) Thursday, down from net income of CA$10.95 million in the same period last year. 

The cannabis venture capital firm disclosed operating income for the quarter of CA$930,000 versus CA$23.27 million in the second quarter of fiscal 2019.

Canopy Rivers reported a diluted loss per share of CA$0.02 for the quarter. 

During the quarter, Canopy Rivers upgraded from the TSX Venture Exchange to the TSX; launched its Strategic Advisory Board; its subsidiary TerrAscend acquired Ilera Healthcare; TerrAscend Canada struck a distribution agreement with Syqe Medical; Herbert Works gained Health Canada approval develop cannabis-infused beverages; and JWC attained a license amendment from Health Canada for the sale of cannabis oils. 

The milestones achieved since the close of the quarter include Radicle signing an agreement with Spectrum Therapeutics; Canopy Rivers partnering with Kindred Partners; and 

After the quarter the company also had notable achievements, including Radicle signing an agreement with Spectrum Therapeutics; Canopy Rivers partnering with Kindred Partners; and Canopy Rivers completing a $10-million loan to TerrAscend Canada.

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"Although the cannabis industry experienced challenging capital markets conditions during the quarter, our view is that the underlying positive momentum across the sector globally will help propel disciplined companies through these headwinds," Canopy Rivers Chief Financial Officer Eddie Lucarelli said in a statement. 

"We believe that a strong balance sheet and a continually maturing market create optimal conditions for investment opportunities for Canopy Rivers. We remain focused on our business model of providing capital to the disruptors of the cannabis industry, while maintaining a thesis-driven approach to investment decisions and keeping long-term value creation for our shareholders front of mind."

The over-the-counter stock was down 17.46% at 83 cents at the time of publication Thursday. 

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