Canopy Rivers' Portfolio Company Dynaleo Receives Health Canada Licence

TORONTO, June 22, 2020 /CNW/ - Dynaleo Inc. ("Dynaleo"), the most recent addition to Canopy Rivers Inc.'s ("Canopy Rivers") (TSX: RIV) (OTC: CNPOF) portfolio of disruptive cannabis companies, has received its Standard Processing Licence from Health Canada. This follows the completion and commissioning of Dynaleo's 27,000 square foot purpose-built facility, and is a key milestone as it aims to ramp up production of white label gummies for the Canadian recreational market. Dynaleo plans to develop and close on its existing customer pipeline that includes licensed producers and traditional consumer packaged goods companies.

"We are thrilled with the momentum at Dynaleo," said Narbé Alexandrian, President and CEO, Canopy Rivers. "Data shows that the total addressable market for edibles, and specifically gummies, remains large. Licensed producers haven't yet been able to scale their production to meet consumer demand for this product category, and brand loyalty has not yet been achieved the same way we have seen in mature U.S. markets for similar products. We believe that Dynaleo will be a key partner in manufacturing gummies brands that will be leaders in the 2.0 market."

"We believe our purpose-built, industrial scale facility can bring the volume needed to keep our partner's brands in stock on a national basis," said Michael Krestell, Executive Chairman, Dynaleo. "Like our partners at Canopy Rivers, we see a significant gap between consumer demand and industry supply and we believe we are well positioned to help fill it."

Canopy Rivers invested in Dynaleo in April 2020. Based on Dynaleo's current ownership, and assuming conversion of Canopy Rivers' convertible debenture and exercise of its warrants, Canopy Rivers' ownership interest in Dynaleo will be approximately 12%.

About Canopy Rivers
Canopy Rivers is a venture capital firm specializing in cannabis with a portfolio of 18 companies across various segments of the cannabis value chain. We believe that bringing together people, capital, and ideas raises the potential of the entire cannabis industry. By leveraging our industry insights, in-house expertise, and thesis-driven approach to investing, we aim to provide shareholders with exposure to specialized and disruptive cannabis companies. Our 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 our portfolio, we are helping build the cannabis industry of tomorrow, today.

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: Dynaleo's plans to ramp up production of white label gummies for the Canadian recreational market and to develop and close on its existing customer pipeline; the expected size of the edibles and gummies markets; management's belief that Dynaleo will be a key partner in manufacturing gummies brands that will be leaders in the 2.0 market; Dynaleo's belief that its facility can bring the volume needed to keep its partner's brands in stock nationally; Dynaleo's belief that there is a significant gap between demand and supply and that Dynaleo is well positioned to help fill it; Canopy Rivers' ownership interest in Dynaleo; 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 Dynaleo's plans and its actual production capacity and ability to develop and close on its customer pipeline; changes in cannabis industry growth and trends; changes in the anticipated or actual market size for edibles and gummies; changes in consumer preferences and demands; changes in general economic, business and political conditions, including challenging global financial conditions and the impact of the novel coronavirus pandemic; potential conflicts of interest; the regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; changes in Canopy Rivers' relationship with Dynaleo; risks associated with the termination, renegotiation and enforcement of material contracts; credit, liquidity and additional financing risks; changes in applicable laws; compliance with extensive government regulation, including Canopy Rivers' interpretation of such regulation; public opinion and perception of the cannabis industry; divestiture risks; competition risks; and the risk factors set out in Canopy Rivers' annual information form dated June 2, 2020, 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.

Media: Rob Small, Senior Manager, Public Relations & Communications, [email protected]; Investor Relations: [email protected]