TORONTO, June 22, 2020 /PRNewswire/ - Dynaleo Inc. ("Dynaleo"), the most recent addition to Canopy Rivers Inc.'s ("Canopy Rivers") (TSX:RIV) (OTC:CNPOF) portfolio of disruptive cannabis companies, has received its Standard Processing Licence from Health Canada. This follows the completion and commissioning of Dynaleo's 27,000 square foot purpose-built facility, and is a key milestone as it aims to ramp up production of white label gummies for the Canadian recreational market. Dynaleo plans to develop and close on its existing customer pipeline that includes licensed producers and traditional consumer packaged goods companies.
"We are thrilled with the momentum at Dynaleo," said Narbé Alexandrian, President and CEO, Canopy Rivers. "Data shows that the total addressable market for edibles, and specifically gummies, remains large. Licensed producers haven't yet been able to scale their production to meet consumer demand for this product category, and brand loyalty has not yet been achieved the same way we have seen in mature U.S. markets for similar products. We believe that Dynaleo will be a key partner in manufacturing gummies brands that will be leaders in the 2.0 market."
"We believe our purpose-built, industrial scale facility can bring the volume needed to keep our partner's brands in stock on a national basis," said Michael Krestell, Executive Chairman, Dynaleo. "Like our partners at Canopy Rivers, we see a significant gap between consumer demand and industry supply and we believe we are well positioned to help fill it."
Canopy Rivers invested in Dynaleo in April 2020. Based on Dynaleo's current ownership, and assuming conversion of Canopy Rivers' convertible debenture and exercise of its warrants, Canopy Rivers' ownership interest in Dynaleo will be approximately 12%.