FYI....
December 18, 2018 14:27 ET | Source: Canopy Rivers Inc.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
TORONTO, Dec. 18, 2018 (GLOBE NEWSWIRE) -- Canopy Rivers Inc. (“Canopy Rivers” or the “Company”) (TSXV: RIV) today provided an update that an entity controlled by its portfolio company TerrAscend Corp. (“TerrAscend”) (CSE: TER; OTCQX: TRSSF), NETA NJ LLC (“NETA”), has been selected by the State of New Jersey Department of Health to apply for final approval to operate a vertically integrated Alternative Treatment Center (ATC), which would permit it to cultivate, process and sell medical cannabis in the state.
The State of New Jersey received a total of 146 applications to cultivate, process and sell medical cannabis. NETA was the highest scoring applicant in the most densely populated region in the state, and one of only six successful applicants statewide. Each application was scored by a six-member selection committee selected to provide expertise across a wide range of areas, including plant sciences, diversity and inclusion, and all regulatory aspects of the medicinal marijuana program. These successful applicants were chosen as part of the state’s plan to expand the medicinal marijuana program to include an increased number of eligible conditions for the growing patient population, which now has almost 40,000 participating patients.
In October, Canopy Rivers agreed to a restructuring of its investment in TerrAscend in order to accommodate TerrAscend’s strategic pursuits, while also maintaining strict compliance with industry regulations and the policies of the various securities exchanges which it is subject to. Pursuant to the restructuring, Canopy Rivers Corporation exchanged its common shares for exchangeable shares in the capital of TerrAscend that will only become convertible into common shares following changes in U.S. federal laws regarding the cultivation, distribution or possession of cannabis, the compliance of TerrAscend with such laws and the approval of the various securities exchanges that Canopy Rivers is subject to. The exchangeable shares are not listed on a recognized stock exchange and, until converted into common shares, the holders thereof will not be entitled to voting rights, dividends or other rights upon dissolution of TerrAscend. Given that the growth, cultivation, production and sale of cannabis is not currently federally legal in the US and there can be no assurances that it will be legalized, Canopy Rivers expects to record a write down on its investment in TerrAscend in the third quarter related to the reorganization, unless circumstances change.
Canopy Rivers does not engage in any U.S. cannabis-related activities as defined in Canadian Securities Administrators Staff Notice 51-532.
