Canopy Rivers Portfolio Companies Expanding U.S. Offerings

Update on TerrAscend, High Beauty, and Headset

TORONTO, Oct. 9, 2020 /PRNewswire/ - Canopy Rivers Inc. ("Canopy Rivers") (TSX: RIV) (OTC: CNPOF) today provided an update on the progress three of its portfolio companies are making in U.S. markets. These updates come only weeks before the U.S. election, where six U.S. states will vote on cannabis legalization initiatives and the potential power shift at the federal level could lead to more progressive policies for the cannabis industry. These updates include:

• TerrAscend Corp. ("TerrAscend") commenced sales from its newly expanded State Flower cultivation facility in San Francisco. Since acquiring State Flower in 2019, TerrAscend has expanded the facility from 5,000 to 20,000 sq. ft., enabling it to significantly increase the supply of State Flower's premium cannabis products to California's wholesale market and to TerrAscend's Apothecarium dispensaries.
  
  
• High Beauty, Inc. ("High Beauty") introduced canBE, a new line of natural, aloe-based products combining hemp seed oil, organic plant oils, essential vitamins, antioxidants, and bioflavonoids. canBE is now available on Walmart.com and in 1,760 CVS locations across the U.S. High Beauty has also signed a contract to sell canBE in Kohls in early 2021. This is in addition to High Beauty's High brand, which is available in more than 25 retailers, totalling over 600 stores, in Canada, the U.S., and Europe.
  
  
• Headset, Inc. ("Headset") launched its competitive intelligence tool, Headset Insights Pulse, in Massachusetts. The complimentary service helps potential cannabis business owners, investors and media professionals to compare markets over time and contextualize industry data at various category levels. Headset's co-founder and CEO Cy Scott believes that data on the Massachusetts market may influence the business and investing behaviours of other east coast states on the cusp of legalization. Headset Insights Pulse is now available in nine states and territories, including California, Colorado, Nevada, Oregon, Michigan and Washington, as well as the Canadian provinces of Alberta and British Columbia.

About Canopy Rivers

Canopy Rivers is a venture capital firm specializing in cannabis with a portfolio of 18 companies across various segments of the cannabis value chain. We believe that bringing together people, capital, and ideas raises the potential of the entire cannabis industry. By leveraging our industry insights, in-house expertise, and thesis-driven approach to investing, we aim to provide shareholders with exposure to specialized and disruptive cannabis companies. Our mission is to invest in innovators across the cannabis value chain, help them grow, and ultimately create value by guiding these companies towards a monetization event. Together with our portfolio, we are helping build the cannabis industry of tomorrow, today.

Forward Looking Statements

This news release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Canopy Rivers with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding: potential changes in the U.S. regulatory landscape, including expectations regarding the timing, outcome and impact of the legalization votes to be held in certain U.S. states; the expectation that canBE will be available through more retailers in early 2021; the belief of Headset's co-founder and CEO that data on the Massachusetts market may influence business and investing behaviour; and expectations for other economic, business, and/or competitive factors.

Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Canopy Rivers believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of Canopy Rivers. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; competition risks; changes in cannabis industry growth and trends; changes in the business activities, focus and plans of the Company and its investees; stock market volatility; changes in general economic, business and political conditions, including challenging global financial conditions and the impact of the novel coronavirus pandemic; potential conflicts of interest; the regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; changes in Canopy Rivers' relationship with its investees; counterparty risks, including risks associated with joint venture arrangements; risks associated with the termination, renegotiation and enforcement of material contracts; credit, liquidity and additional financing risks; changes in applicable laws; compliance with extensive government regulation, including Canopy Rivers' interpretation of such regulation; changes in the global sentiment towards, and public opinion of, the cannabis industry; divestiture risks; and the risk factors set out in Canopy Rivers' most recent annual information form and management's discussion and analysis filed with the Canadian securities regulators and available on Canopy Rivers' profile on SEDAR at www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Canopy Rivers has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Canopy Rivers does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

SOURCE Canopy Rivers Inc.