Rivers Rundown: Canopy Rivers Portfolio Companies Eyeing Retail Growth, Expanded U.S. Operations

Canopy Rivers provides update on High Beauty, TerrAscend, YSS, and JWC

TORONTO, Jan. 17, 2020 /PRNewswire/ - Canopy Rivers Inc. ("Canopy Rivers") RIVCNPOF, a venture capital firm specializing in cannabis, portfolio companies have made a series of recent announcements relating to their plans for the cannabis retail market or U.S. cannabis operations. Two portfolio companies are evaluating opportunities to expand their retail footprint in Canada, while another will remember 2019 as the year it grew its retail presence across the U.S., Canada, and Europe. Another Canopy Rivers portfolio company is taking steps to build out its U.S. operations, as more states look to legalize medical or recreational cannabis. More details on these developments are included below:

• High Beauty, Inc. ("High Beauty"), the skincare brand powered by cannabis sativa seed oil, announced in December that its 2019 sales growth was driven by the company's growing list of retailers in the U.S., Canada, and Europe. In the U.S., High Beauty was the first cannabis brand in Macy's, and also sells in Sephora, Urban Outfitters, and Anthropologie, among others. In Canada, High Beauty has signed contracts with Indigo, Hudson's Bay, and Shoppers Drug Mart, while its European distributors include Douglas and Amazon. Additionally, High Beauty's founder & CEO Melissa Jochim was announced as a finalist for Fashion Group International's Beauty Legacy/Product Development Rising Star award in the Beauty Entrepreneur category.
• TerrAscend Corp. TER ("TerrAscend") announced that it has finalized a US$33.5 million non-brokered private placement. TerrAscend intends to use the proceeds from the private placement to accelerate the completion of its New Jersey cultivation and processing facilities, to satisfy the previously announced January 2020 contingent price payment related to the acquisition of Ilera Healthcare, and for working capital and general corporate purposes.
• YSS Corp. ("YSS") YSS is one of eight companies seeking to take over New Brunswick's recreational cannabis retail operations. YSS currently operates 16 stores in Alberta and Saskatchewan under both the YSS and Sweet Tree brands. It recently announced that its two flagship stores have opened in downtown Calgary and that its 17^th store, YSS Grand Prairie, passed final inspection from the Alberta regulator. YSS Grand Prairie is expected to open in early February. YSS has also applied for its Retail Operator Licence with the Alcohol and Gaming Commission of Ontario as it advances expansion plans for Ontario, where its initial strategy will be to identify and pursue at least three premier retail locations until it has greater clarity around timing for licensing.
• James E. Wagner Cultivation Corporation ("JWC") JWCJWCA plans to open a 2,000 square foot farmgate retail store at its flagship cultivation facility in Kitchener, Ontario. The store is expected to be the Kitchener-Waterloo region's first cannabis store located on a licensed cultivation site and represents a new direct-to-consumer outlet for the company. The store is expected to sell JWC's full line of cannabis and derivative products for medical and legal-age recreational users, including the company's recently announced strains.

About Canopy Rivers

Canopy Rivers is a venture capital firm specializing in cannabis. Its unique investment and operating platform is structured to pursue investment opportunities in the emerging global cannabis sector. Canopy Rivers identifies strategic counterparties seeking financial and/or operating support. Canopy Rivers has developed an investment ecosystem of complementary cannabis operating companies that represent various segments of the value chain across the emerging cannabis sector. As the portfolio continues to develop, constituents will be provided with opportunities to work with Canopy Growth Corporation WEEDCGC and collaborate among themselves, which Canopy Rivers believes will maximize value for its shareholders and foster an environment of innovation, synergy and value creation for the entire portfolio.

Forward-Looking Statements

This news release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Canopy Rivers and its portfolio companies with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding: the intended use of proceeds from TerrAscend's private placement; YSS' goal of taking over New Brunswick's recreational cannabis operations and the expected timing for the opening of YSS Grand Prairie; YSS' Ontario expansion plans and its initial strategy for such expansion; JWC's plans to open a farmgate retail store, the impact thereof and the products expected to be sold thereat; the expectation that JWC's farmgate retail store will be the Kitchener-Waterloo region's first cannabis store located on a licensed cultivation site; and expectations for other economic, regulatory, business, and/or competitive factors.

Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Canopy Rivers believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of Canopy Rivers. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in the use of proceeds from TerrAscend's private placement; changes in cannabis industry growth and trends; changes in consumer preferences and demands; changes in the business activities and plans of JWC and YSS and the associated timing therewith; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; risks relating to anti-money laundering laws; compliance with extensive government regulation, including Canopy Rivers' interpretation of such regulation; public opinion and perception of the cannabis industry; divestiture risks; and the risk factors set out in Canopy Rivers' annual information form dated July 15, 2019, filed with the Canadian securities regulators and available on Canopy Rivers' profile on SEDAR at www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Canopy Rivers has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Canopy Rivers does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

SOURCE Canopy Rivers Inc.