Canopy Rivers, the corporate venture capital spinout of Canada-based medical marijuana producer Canopy Growth, went public on Thursday on the TSX Venture Exchange through a reverse merger with shell company Aim2 Ventures.
The company’s shares opened at C$8.25 ($6.39) on Thursday before briefly reaching a peak of C$9.70. They closed at C$7.75 on Friday, giving Canopy Rivers a market cap of C$1.04bn ($805m).
Founded in April 2017, Canopy Rivers focuses on companies throughout the marijuana supply chain, pursuing traditional equity investments, joint ventures, production-linked royalties deals and secured debt financing with both public and private companies.
Canopy Rivers currently has 11 companies in its portfolio, including cannabis-focused lifestyle and media brand Civilized Worldwide and marijuana producer TerrAscend.
Bruce Linton, co-founder and CEO of Canopy Growth, is acting chief executive and chairman of Canopy Rivers. The unit secured $20.8m in a private placement in January 2018 and $79.5m in a July 2018 private placement.
Canopy Growth owns a 25% stake in Canopy Rivers and holds nearly 90% of its voting rights through a dual class structure.
Aim2 Ventures listed on the TSX Venture Exchange in February 2018 following a $400,000 initial public offering. It was listed under the ticker symbol RIV, which is now being used by Canopy Rivers.
Canopy Rivers’ listing was led by Canadian Imperial Bank of Commerce, with GMP Securities and Eight Capital also acting as underwriters.