Canopy Rivers Announces Receipt of Statement of Claim in Respect of Pharmhouse Joint Venture

Canopy Rivers Inc. announces that it has received a statement of claim filed by 2615975 Ontario Inc., the Company’s joint venture partner in PharmHouse Inc., concerning certain disputes relating to PharmHouse. The Claim makes a number of allegations against the Company, Canopy Growth Corporation, and TerrAscend Corp. and TerrAscend Canada Inc., including claims relating to bad faith, fraud, civil conspiracy, breach of the duty of honesty and good faith in contractual relations and breach of fiduciary duty, and claims relating to PharmHouse’s offtake agreements with Canopy Growth and TerrAscend.

Canopy Rivers is a venture capital firm specializing in cannabis with a portfolio of 18 companies across various segments of the cannabis value chain. They believe that bringing together people, capital, and ideas raises the potential of the entire cannabis industry. By leveraging their industry insights, in-house expertise, and thesis-driven approach to investing, they aim to provide shareholders with exposure to specialized and disruptive cannabis companies. Their mission is to invest in innovators across the cannabis value chain, help them grow, and ultimately create value by guiding these companies towards a monetization event. Together with their portfolio, they are helping build the cannabis industry of tomorrow, today.

Canopy Rivers considers the Claim as it relates to the actions of Canopy Rivers to be completely without merit, and intends to vigorously defend its position at the appropriate time and in the appropriate forum.

As previously announced, Canopy Rivers has formed a special committee of independent directors (the “Special Committee”) to oversee and provide guidance relating to the Company’s investment in PharmHouse as well as to consider strategic alternatives for the Company regarding its investment in PharmHouse. The Special Committee continues to consider, with the assistance of its financial and other advisors, these strategic alternatives and is aware of, and directing the Company’s defence against, the Claim.