Cannabis sector investment and operating platform Canopy Rivers (Canopy Rivers Stock Quote,, Chart TSXV:RIV) has announced an increase in its stake in CanapaR Corp., an Italy-based organic hemp production and processing entity.
PI Financial analyst Davin Schilling rates the transaction’s impact a positive, saying it builds on the company’s international expansion strategy and helps RIV position itself to capitalize on the emerging European market for CBD products.
Canopy Rivers, the venture capital wing of Canopy Growth Corp. which went public on the TSX Venture on September 20 of this year, made the announcement on Thursday that its ownership stake would increase from 35 per cent to 49.9 per cent, with RIV committing to invest $17.4 million in CanapaR in two tranches as part of a planned $25-million non-brokered private placement.
“We are thrilled with the progress that has been made to date at CanapaR and believe the team is ideally positioned with a European platform,” said Olivier Dufourmantelle, COO of Canopy Rivers. “With a population of more than 60 million people, Italy is one of the largest cannabis markets in Europe and we are confident that CanapaR will succeed within that market.”
Schilling says Canopy Rivers represents best-in-class exposure to the emerging global cannabis sector.
“We believe there will be significant demand for innovative CBD and cannabinoid-infused products ranging from natural health supplements to skincare products,” says Schilling in a corporate update on Friday. “CanapaR’s CEO, Sergio Martines brings extensive international experience in the pharmaceutical, cosmetic, and nutritional fields, with over 30 years’ experience in the development and commercialization of consumer products.”
The analyst has reiterated his “Buy” rating and $9.00 target price, which represents a 143 per cent projected return at the time of publication.
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