Canopy Rivers (RIV), the venture arm of Canopy Growth (WEED.T) is set to go public this week. The IPO price back in June was $3.50, but based on market changes since then, it could be as high as $5.00. Many investors will be lined up after watching what happened recently with the Tilray (TLRY.Q), Charlotte’s Web (CWEB.C) and Martello Technologies (MTLO.C) IPO’s.

This isn’t another extremely low float scenario like Tilray or Charlotte’s Web. However, the demand will be incredibly high as this IPO has been all over the news lately, there is also FOMO in the air after the recent IPO craze. When Tilray did its IPO, Canopy, Aurora and Aphria all had down days, it’s safe to say people may take their gains out of their investments to free up some cash for RIV as well.

Canopy River’s current value comes from its current holdings and the premium that the market is willing to pay based on their expectation that they will have Canopy’s help in picking the winners.

Canopy Rivers Portfolio

RIV had its private offering back in June-July and raised $104 million at $3.50 per share. According to Canopy’s Q1 2018 filings, RIV had long term investments of $226M.

RIV’s shares outstanding is approximately 171 million. Because of the early round and insider lockup period, RIV will trade much tighter than its shares outstanding states on paper. Fully-diluted, Canopy Rivers share structure rises to approximately 197 million.


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