Cannabis Comes to the Fore as Tobacco and Alcohol Use Slide

NEW YORK, May 24, 2019 /PRNewswire/ -- The widespread growth of the cannabis industry has caught the interest of numerous public and private sectors. Currently, the cannabis industry is an emerging global marketplace which has witnessed immense growth throughout recent years. The exponential growth of the industry is largely due to the ongoing global legalization efforts which make it hard for companies to ignore the plant. Particularly, companies involved in the tobacco and beverage industry have taken a keen interest as the two sectors have poured investments into cannabis-based companies or even launched their own cannabis operations. The biggest factor as to why the tobacco and beverage industries are investing in cannabis is that many are witnessing their primary revenue drivers decline. For instance, the Centers for Disease Control and Prevention reported that cigarette smoking among U.S. adults declined from 20.9% in 2005 to just 15.5% in 2016. Moreover, The Wall Street Journal's industry tracker, IWSR, highlighted that U.S. alcohol volume dropped by 0.8% in the past year, a slight increase on the 0.7% decline in 2017. Conversely, the cannabis industry is witnessing its user base and support increase each year and public opinion has consistently proven that most Americans support the legalization of cannabis. According to a survey by Gallup, approximately 60% of Americans support the legalization, which is significantly up from just 44% in 2014. While cannabis is still illegal in most countries, its growing adoption highlights the profound shift the industry is currently undergoing. According to data compiled by BCC Research, the North American legal cannabis market was valued at USD 10.7 Billion in 2018. By 2023, the market is expected to reach USD 25.5 Billion while exhibiting a CAGR of 18.9% during the forecast period from 2018 to 2023. Canopy Rivers Inc. (OTC: CNPOF) (TSX-V: RIV), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Aphria Inc. (NYSE: APHA) (TSX: APHA), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX-V: OGI)

The expansion of the cannabis market has led many companies to publicly list their shares onto major stock exchanges around the world. Predominantly, cannabis companies are headquartered in Canada, however, many have moved to establish operations across borders and in regions like the U.S. and Europe. Notably, a handful of multi-billion dollar cannabis corporations have moved to list their shares on the two largest exchanges in the world: The New York Stock Exchange and the Nasdaq Stock Exchange. However, skepticism remains among some investors because of the federal legality issue revolving around cannabis. In particular, the U.S. has not federally legalized cannabis, yet the country still accounts for the largest market share globally. Despite the regulations imposed on companies within the U.S. and Canada, many have experienced substantial growth in terms of revenue, with some companies seeing their revenue grow by five-fold in just one year. Furthermore, if cannabis does eventually become legal around the world or particularly within the U.S., it would open a wide array of investment opportunities for the public. "It's an exciting time for investors in the new marijuana industry who are now able to purchase shares in companies producing cannabis products for the consumer and medical markets for the first time ever. It has also been somewhat frustrating however, because those investment choices are currently limited by an inconsistent patchwork of laws," said David Borun, Stock Strategist at Zacks. "If marijuana becomes broadly legal at the federal level in the US, there is likely to be a deluge of investment opportunities as a new crop of surprisingly sophisticated new companies seek to raise capital on major exchanges."

Canopy Rivers Inc. (OTC: CNPOF) (TSX-V: RIV) is also listed on the TSX Venture Exchange under the ticker (TSX-V: RIV). Yesterday, the Company announced that, "it will host an analyst and investor day on Tuesday, May 28 from 1:00 p.m. to 5:00 p.m. ET.

Bruce Linton, Chairman of the Board, will share his perspective on Canopy Rivers' unique value proposition. This will be followed by a presentation from senior executives addressing Canopy Rivers' priorities in support of its mission to accelerate success in the global cannabis economy. The event will also feature panel discussions highlighting select Canopy Rivers portfolio companies.

Due to limited capacity, attendance is by invitation only. The event will have a live webcast and all interested parties are invited to join. Webcast details will be available on Canopy Rivers' website immediately prior to the event at www.canopyrivers.com/investors/events.

For further information about Canopy Rivers' analyst and investor day event, please contact ir@canopyrivers.com.

About Canopy Rivers: Canopy Rivers is a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. Canopy Rivers works collaboratively with Canopy Growth Corporation (TSX: WEED, NYSE: CGC) to identify 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 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 ecosystem."

For our latest "Buzz on the Street" Show featuring Canopy Rivers Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=H9kciNx3qws

Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through the Company's subsidiary, Storz & Bickel GMbH & Co. KG. Canopy Growth Corporation recently announced the appointment of Mike Lee to its executive leadership team in the acting role of Chief Financial Officer (CFO), effective June 1st, 2019. Mike's permanent role as CFO will commence upon receiving Health Canada security clearance required for all Officers and Directors of the Company. Mike brings a wealth of experience from the consumer goods & beverages industry, having worked for companies such as E. & J. Gallo Winery, PepsiCo, and recently Constellation Brands, where he served as Senior Vice President & CFO for their USD 3 Billion Wine & Spirits Division. He worked closely with Constellation Brands' executive leadership to transform their premium Wine & Spirits business, applying financial rigor along the way with a true sense of urgency that translated strategy into action. Mike also led the business transformation agenda at Constellation Brands, focused on digital enablement and operating model design. Most recently, Mike has served in the role of Executive Vice President, Finance at Canopy Growth Corporation. "When I welcomed Tim four years ago, Canopy Growth had a market cap of USD 93 Million, two partially licensed production sites in Ontario and a single acquisition under our belt. After more than 26 acquisitions, 8 financings worth over USD 6.2 Billion, the sector's first TSX and NYSE listings, and reaching a market cap of USD 21 Billion, Tim exemplifies what it means to be a leader at Canopy Growth," said Bruce Linton, Chairman and Co-Chief Executive Officer, Canopy Growth. "As Tim transitions roles, I am also pleased to elevate Mike into the acting CFO role. His philosophy, accomplishments and all-around track record give me confidence that the Company's financial health and governance are in good hands. I look forward to working more closely with Mike, benefitting from his vision and expertise as the Company continues growing, both at home and abroad."

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) is an innovative global cannabinoid company with international production and distribution across five continents. Cronos Group Inc. recently announced financial results and business highlights for the first quarter ended March 31, 2019. Net revenue was USD 6.5 Million in the first quarter of 2019, representing a 120% increase from USD 2.9 Million in the first quarter of 2018, primarily driven by the launch of the adult-use market in Canada. Net revenue increased 15% quarter-over-quarter from USD 5.6 Million in the fourth quarter of 2018, primarily driven by increased sales in CBD oil, which carries no excise tax reduction and increased sales of dry flower. 1,111 kilograms were sold in first quarter 2019, representing a 122% increase from 501 kilograms sold in first quarter 2018, primarily driven by increased cannabis production and the launch of the adult-use market in Canada. Kilograms sold increased 7% quarter-over-quarter from 1,040 kilograms sold in fourth quarter 2018, primarily driven by increased cannabis production. "In the first quarter of 2019, the business performed in line with our expectations. We continue to stay laser-focused on our strategy of building our supply chain, distribution, intellectual property and brand portfolios," said Mike Gorenstein, Chief Executive Officer of Cronos Group. "We're delighted to have officially closed our transaction with Altria and to kick off a relationship we expect to lead to significant growth and value creation. Altria's investment and the services that Altria will provide to Cronos Group will enhance our financial resources and allow us to expand our product development and commercialization capabilities. Altria's skills in these areas as well as its regulatory expertise position Cronos Group to compete, scale and lead the rapidly growing global cannabis industry as markets open and welcome legalization."

Aphria Inc. (NYSE: APHA) (TSX: APHA) is a leading global cannabis company driven by an unrelenting commitment to our people, the planet, product quality and innovation. Aphria Inc. recently announced several new executive appointments including James Meiers to the role of Chief Operating Officer, Aphria Leamington, Tim Purdie as Chief Information Officer & Chief Information Security Officer, and Maureen Berry as Vice President, Corporate Human Resources. The Company also announced that Jakob Ripshtein, Aphria's President, will resign from the Company. Mr. Ripshtein will remain in his current role until June 7th, 2019. His current responsibilities will be shared among the existing senior leadership team. "On behalf of the Board of Directors and Aphria team, we thank Jakob for his contributions to the Company over the past year and wish him well in his future endeavors. He has been instrumental in assembling the incredible team we are fortunate to have today that will carry his responsibilities forward," said Irwin D. Simon, Interim Chief Executive Officer of Aphria Inc. "I am very pleased to welcome Jim and Maureen to Aphria, and to promote Tim. A top priority for us is to continue to build our executive talent and culture. We believe today's appointments demonstrate our commitment to adding depth, experience and leadership to our team as we further advance Aphria's strategic priorities in Canada and around the world. At Aphria, we remain focused on creating long-term shareholder value by leveraging our strong brand positioning, superior distribution model, product innovation, industrial scale cultivation and automation, medical-use leadership, and our strategic global platform, which we intend to amplify using proceeds from the Company's recent USD 350 Million offering," Simon continued "We are pleased to share that the ramp-up of our growing operations in Parts IV and V at Aphria One are progressing smoothly and Aphria One is on-track to reach its annualized production capacity of 110,000 kilograms by the end of 2019." 

OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX-V: OGI) is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis and cannabis-derived products in Canada. Organigram Holdings Inc. recently announced that its common shares commenced trading on the Nasdaq Global Select Market under the symbol "OGI" on Tuesday, May 21st, 2019. Organigram's common shares will continue to be listed and trade on the Toronto Venture Exchange (TSXV), also under the symbol "OGI". The Company's common shares continued to trade on the OTCQX under the symbol "OGRMF" until the market close on May 20th, 2019. In conjunction with this Nasdaq listing, Organigram's common shares will become DWAC/FAST eligible for U.S. shareholders. "We are pleased to celebrate this significant company milestone," says Greg Engel, Chief Executive Officer, Organigram. "We are proud to have assembled a world-class team and facility that continues to deliver value to our shareholders. This listing will help us continue to demonstrate our commitment to dynamic growth."

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