Canopy Rivers Inc (OTCMKTS:CNPOF) Reduces Payout of Directors, Slashes Headcount And Lowers Other Expenses To Improve Efficiency, Returns, And Cash Flow

Canopy Rivers Inc (OTCMKTS:CNPOF) Reduces Payout of Directors, Slashes Headcount And Lowers Other Expenses To Improve Efficiency, Returns, And Cash Flow

To enhance efficiency and boost cash flow, Canopy Rivers Inc (OTCMKTS:CNPOF) adopted a series of measures like reduction in payout for the Directors, headcount, and marketing expenses. The company also capped the corporate expenses at 35% of the operating cash outflows in 2020. It is focusing on improving returns from the existing assets.

Considers acquiring 10% of subordinate shares

As part of NCIB (normal course issuer bid) announced previously, the company intends to repurchase 10% of the subordinate shares from the open market. CEO and President of Canopy Rivers, Narbe Alexandrian, said the company will provide rich dividends to the shareholders in the long term by improving operational performance and adopting strict financial discipline. It also plans to invest prudently for long term growth.

Invests wisely for rich dividends

Narbe further said the company will mobilize funds from investments already made and use surplus cash to enjoy investment opportunities going forward. Investment opportunities at this difficult juncture are available at attractive valuations, and the company intends to cash in on this trend.

Portfolio companies achieve milestones

The portfolio companies of Canopy Rivers achieved significant milestones despite the troubles brought in by the ongoing coronavirus crisis. Some of the notable achievements include the expansion of operations of TerrAscend in the US, PharmHouse licensing, and successful Photoseeds trial by Zeakal.

Canopy Rivers invested in two ag-tech companies that expect to disrupt the cannabis segment. The company also launched a strategic advisory board and graduated to the TSX. Its net loss in Q4 2020 is CAD 0.9 million.

Chief Finance Officer, Eddie Lucarelli said cannabis companies such as Canopy Rivers faced some turbulence in the 12 months because of prevailing challenging conditions. Its financial results suffered the impact of challenging conditions that prevailed in the last year. However, the potential for the cannabis sector in the long term is bright. Considering its deep insights into the cannabis segment and cash on hand, the company expects to strengthen the business of its disruptors.

Dynaleo gets CAD 2 million investment

Canopy Rivers invested CAD 2 million in an Edmond based firm – Dynaleo Inc, which is engaged in the production of edible cannabis gummies. Through this investment, Canopy Rivers capitalizes on the opportunities that exist in Canada’s underdeveloped cannabis market.

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