The challenging market conditions for the cannabis sector and business disruptions because of ongoing coronavirus caused Canopy Rivers Inc (OTCMKTS:CNPOF) to report an operating loss of CAD 0.9 million in Q4 2020.
Expects to post solid growth
Canopy Rivers reviewed its business operations and adopted a slew of measures to strengthen its financial discipline and move on the track to report strong growth. CEO and President of Canopy Rivers, Narbe Alexandrian, said the company achieved considerable progress in the past year, and it makes the road for success next year.
Portfolio companies reach new targets
The portfolio companies of Canopy Rivers accomplished significant milestones in the last year. Notable achievements include TerrAscend successfully expanded its business operations in the US, and PharmHouse received a license. Zeakal successfully concluded the trial of Photoseed technology. Canopy Rivers also invested in four firms that comprise two ag-tech firms. These developments expect to disrupt the cannabis sector.
CFO, Eddie Lucarelli, said its financial results indicate the challenges in the capital markets for the cannabis sector in the past 12 months. However, it is more of a cannabis economy development, and long term potential is significant. The company expects to capitalize on the available opportunities, given its deep insights into the sector and better cash resources.
As the company continues to derive its financial performance from its portfolio companies, any change in the financial assets fair value at FVTPL could go either side. The net changes will largely depend on capital markets, business, and the regulatory conditions that relate to the cannabis segment. Ongoing Caronavirus may also impact its prospects going forward.
Updates from portfolio companies
The financial position of TerrAscend is strengthened because it is finalizing a non-brokered placement of $33.5 million. Its subsidiary, TerrAscend Canada, signed an accord with Canopy Growth Corporation to fetch $80.5 million loan. The company is developing the business operations in the US because its two subsidiaries – based in Utah and New Jersey received the nod for medical cannabis cultivation or processing.
Health Canada granted a license amendment for PharmHouse to ramp up its business operations its automated greenhouse spans on 1.3 million square Sq. Ft.