A brief update on Canopy Rivers (Canada: RIV, OTC: CNPOF). I wrote about the company a few weeks ago (Is Cannabis the New Saas Part Two). The stock is up about 30% since my post. Canopy Rivers put out an informational circular ahead of the special vote on February 16th to separate from Canopy Growth (Canada: WEED, NYSE: CGC). The informational circular has a ton of information in it.
First up, I made a mistake on the number of fully diluted shares outstanding. The correct number is 167 million, not 143 million. This is one of the reasons I counsel readers to do their own work.
Second, Canopy Growth has jumped as well, rising over 20%.
Here are my updated numbers, which I felt compelled to share with the more accurate information. Again, remember to do your research and work. I could be wrong!
That said, I continue to believe that Canopy Rivers is the equivalent to a SPAC (Special Purpose Acquisition Corporation) without the dilutive SPAC economics. Better yet, Jason Wild, (Jason Wild has averaged 27% net returns a year for over twenty years) will be the largest shareholder and we are getting a free look at an attractive US cannabis acquisition under Jason’s supervision. With most SPACs trading above the cash value of their holdings and with far worse economics for shareholders, Canopy Rivers continues to be attractive.