RIV stock is trading in the green on Wednesday after Canopy Rivers' (TSX:RIV) (OTCPK:CNPOF) portfolio company BioLumic Ltd. received approval from the New Zealand Ministry of Health to apply its proprietary ultraviolet light technology to medical cannabis.
Major Details
Canopy Rivers announced that one of its portfolio companies, BioLumic Ltd, has been awarded the all-important approval to use its patented ultraviolet light tech on medical cannabis by the New Zealand Ministry of Health. This is a major breakthrough for BioLumic and one that could usher in a new era for the company as a whole.
This will be the very first time that the company will be able to use its proprietary technology on cannabis. BioLumic is going to launch a new program and has decided to partner with two leading cannabis firms to do so.
RIV stock is trading higher by 2.50% at $1.18 CAD.
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The company revealed that the trials for medical cannabis are going to be conducted in Canada and New Zealand by June this year. It is going to work with both Canopy Rivers and another portfolio company, James E. Wagner Cultivation Corporation, on the project.
Canopy Rivers as a whole has not had a great time lately, and its financial results for the last reported quarter proved to be a disappointment. The venture capital firm is primarily involved in the cannabis sector, and hence its earnings are an important indication of the state of the industry. Will BioLumic's project help turn things around for RIV stock?
Q2 Earnings Review
In November, the company reported that it generated an operating income of $930,000 CAD in the second quarter, which reflected a significant drop from the $23 million CAD it had generated in the same quarter a year ago. The net losses for the quarter stood at $4.4 million CAD, which also reflected a massive drop from the net income of $10.9 million CAD in the year-ago period.
RIV stock is one of the worst performers in the cannabis sector, with a slump of 70% over the past year.
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