Canopy Rivers Gears Up for Cannabis 2.0


Nov. 11 2019, Published 1:28 p.m. ET

Health Canada recently launched Cannabis 2.0. Canopy Rivers (RIV) is gearing up to take advantage of the new market, and it has a laundry list of subsidiary companies in its portfolio to help it do so. Further, the company has applied for license amendments from Health Canada. These amendments will be gateways for these companies in the new market.

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Canopy Rivers’ licenses

Let’s take a look at Canopy Rivers’ portfolio companies.

TerrAscend currently sells its products in Canada, the US, and the European Union. The company will receive a revised license from Health Canada. With the license, the company can further process and sell its newly regulated products. Further, it expects to start selling its new product line in December this year.

James E. Wagner Cultivation will also receive a revised Health Canada license. This revised license will allow the company to process and sell edibles, extracts, and other products. It’s vital for the company, which has been widely investing in research and development for new products.

Radicle Medical Marijuana’s products are currently available online. They can be purchased from Canopy Growth’s medical platform. The company will also receiving a revised license, which will be a gateway for its newly regulated products.

Cannabis 2.0

Health Canada finally kicked off Cannabis 2.0 last month. It’s the next wave of Canada’s recreational cannabis legalization and permits the production and sale of cannabis-derived products such as edibles and beverages. Health Canada recently started accepting applications for these new product lines.

According to Deloitte’s Nurturing New Growth report, the value of the newly regulated product’s market is worth 2.7 billion Canadian dollars. Further, the cannabis extracts market alone contributes 1.6 billion Canadian dollars to this market.

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Canopy’s strategy for Cannabis 2.0

Radicle Medical Marijuana recently received an oil license. Canopy Rivers is acquiring all the necessary licenses to benefit from the new market. It’s also entered into an alliance with Kindred Partners. Canopy plans to make use of the new company’s skills in marketing and branding.

Canopy Growth (WEED) (CGC) is also planning to launch a new line of products. The company is developing high-quality beverages and edibles. It will launch these new products by the end of 2020. It’s also been developing new beverages with Constellation Brands (STZ), and it plans to launch a variety of cannabis beverages soon.

Canopy’s stock performance

Canopy Rivers stock is currently trading at 1.6 Canadian dollars. The stock is down almost 48% YTD (year-to-date), whereas Canopy Growth is down 22% YTD and is currently trading at 28.32 Canadian dollars.

Canopy Rivers’ consensus rating is 2. Its consensus target price stands at 6.63 Australian dollars, 314% higher than its current trading price.


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