Canopy Rivers Invests In Dynaleo To Produce Pot Gummies
The Toronto-based venture capital firm believes this investment in pot gummies manufacturer will boost this segment of the Canadian market that was largely neglected before due to regulatory uncertainties over it.
"In the gummies market specifically, we see a significant supply and demand imbalance and a move towards outsourcing products to leading manufacturers," said Canopy Rivers President and CEO Narbé Alexandrian in a prepared statement.
According to Headset and Deloitte, the country's edibles market could reach $1.6 billion yearly.
Meanwhile, gummies were the best selling edible products over the border. Colorado and California sales of gummies accounted for 55% and 56% of total edible product sales.
The launching of Dynaleo's 27,000 square-feet facility built for the manufacture of edible cannabis gummies is expected upon receiving of Health Canada's certification.
"On top of helping Canada's licensed producers close the supply gap, we also believe that Dynaleo will play a role in expanding the total addressable market for cannabis products, with market research indicating that new consumers are more likely to enter the cannabis market through edibles than other products," Alexandrian said.
Last week witnessed similar investment moves, including a deal with alcoholic beverage giant Constellation Brands Inc. (NYSE: STZ), which acquired shares of Canopy Growth Inc. (NYSE:CGC) for $245 million. The tansaction ups Constellation's stake in Canopy to about 39%.
Canopy Rivers is the publicly traded venture capital unit of Canopy Growth.
Ontario-based Constellation first bought a 9.9% stake in Canopy Growth in October 2017. The company later raised its stake to 38% in August 2018 via a $4-billion acquisition.
Photo courtesy of Canopy Rivers
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