RIV stock is in the green on Friday after Canopy Rivers (TSX:RIV) (OTCPK:CNPOF) announced that it had received approval from Health Canada to begin selling cannabis oil products, as well as unveiling a new partnership with cannabis brokerage and services company Kindred Partners.
Expanded License Approval for Radicle
The new license from Health Canada has been awarded to Canopy Rivers' wholly-owned subsidiary Radicle Medical Marijuana and will allow the company's medical patients broader access to other products in its craft cannabis selection. The company currently owns a 24% stake in Radicle, having invested $10 million CAD earlier this year.
As part of the investment, Canopy Rivers receives a long-term royalty cash flow stream with a minimum annual payment of $900,000 CAD over a 20-year term. RIV stock is currently trading up 5% following the announcement.
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RIV Stock Looks Towards 2.0 Market
Supply and distribution issues have wreaked havoc on pot companies in the first year of legalization. With RIV stock dropping 75% in the first year of legalization, Canopy Rivers has looked ahead to the 2.0 market to address these issues. The partnership will see Kindred Partners, which is a subsidiary of Breakthru Beverage Group, provide its expertise in working with Canadian regulators, licensed producers, and retailers to broker regulated cannabis products for the adult-use market.
After sinking to a year-low earlier this week, RIV stock is recovering slightly following this deal. "As we head into cannabis 2.0 and the Canadian cannabis market continues to develop in a highly regulated environment, we expect that distribution will be one of the key tenets of success for brands," said Narbé Alexandrian, President and CEO of Canopy Rivers.
"Our strategic alliance with Kindred presents a valuable opportunity for our portfolio companies to access the expertise and distribution channels necessary to enable their branded products to thrive. We're excited to work with Kindred." RIV stock is trading at $1.76 at the time of writing.
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