Canopy Rivers Inc., a venture capital firm dedicated to the cannabis industry, has presented its latest financial results corresponding to the first quarter of fiscal 2021 that ended on June 30, 2020. Even though the company has not reached profitability yet, the results showed improvement in several areas, especially with the expansion of the Dynaleo investment across Canadian markets. Besides presenting its unaudited condensed interim consolidated financial statement, Canopy Rivers also included an analysis and management discussion to highlight the company’s plans moving forward.
Canopy Rivers continues to be focused on keeping a financial discipline, and its total royalty, interest, and lease income were $2.7 million, which comes from its investments in Agripharm Corp., Greenhouse Juice Company, Radicle Medical Marijuana Inc. and The Tweed Tree Lot Inc. Besides that, it also received interest from its $40.0 million shareholder loan agreement with PharmHouse Inc. It also received a boost from the 16% decrease in operating expenses over the same period last year, for a total of $2.7 million. That included $900,000 is a non-cash expense and $1.3 million of general administrative expenses. After consideration of operating income, operating expenses, equity method investees, and FVTPL fair value changes, Canopy Rivers reported a net operating loss of $2.4 million.
“This quarter, we made a strategic investment in Dynaleo, a cannabis gummies manufacturer that we believe is well-positioned to help Canada’s licensed producers and brands catch up to consumer demand for the gummy product format,” said Narbé Alexandrian, Canopy Rivers president and CEO. “We also continued to work closely with our portfolio companies to help resolve some of the unique macroeconomic challenges that emerged inside and outside of the cannabis sector. While PharmHouse faces some immediate challenges, we continue to believe that it has the potential to become a key component of the Canadian supply chain for low-cost, high-quality cannabis, especially as the value segment of dry flower becomes more prominent.”