TORONTO, March 18, 2019 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Canopy Rivers Inc. and LeafLink, Inc. have announced the establishment of LeafLink Services International ULC, a new venture that exclusively licenses and leverages LeafLink’s dominant business-to-business (B2B) marketplace and supply chain technology platform for deployment throughout regulated international cannabis markets.
LeafLink is a software-as-a-service (SaaS) marketplace that simplifies the supply chain through its e-commerce platform. The company has a growing network of more than 950 cannabis brands, and penetration throughout ~2,800 cannabis retailers across 16 territories in the United States. LeafLink has established the single largest B2B marketplace for cannabis brands and facilitates more than US$900 million in gross merchandise value annually. Retailers use LeafLink for managing their wholesale inventory, enabling them to shop multiple vendors in one cart, view up-to-date product and brand menus, review historical and open orders, discover new products, and request samples. LeafLink further serves vendors by offering supplementary tools such as order management, a customer relationship management (CRM) platform, inventory tracking tools and customized reporting systems, among other services.
“We have been very impressed with LeafLink’s deep market penetration and their understanding of cannabis companies’ needs and behaviors,” said Narbé Alexandrian, president of Canopy Rivers. “The number of brands and products within our new cannabis economy has been explosive, making it difficult for retailers to deal with multiple parties in an increasingly fragmented market. As regulated cannabis consumption and distribution proliferates around the world, LeafLink International will introduce the industry’s leading SaaS-enabled marketplace to the global stage to create a new standard for expediting the cannabis supply chain in regulated markets."
By creating this new joint venture, Canopy Rivers continues to expand its exposure across the cannabis value chain through a capital-light, market-leading B2B platform that is immediately scalable across legal jurisdictions. Canopy Rivers intends to integrate its network of complementary cannabis companies and global reach to drive growth for LeafLink International and assist in developing and deploying this technology as it continues to increase its global footprint.
“We are excited to join forces with Canopy Rivers--combining our industry-leading, B2B marketplace technology with their expertise and strategic network in the global cannabis market,” said Ryan G. Smith, CEO and co-founder of LeafLink. “Together, we are creating the first seamless e-commerce experience across the global cannabis supply chain to further empower members of the LeafLink community.”
Under the terms of the agreement, LeafLink has made an initial capital commitment of US$1 million along with an exclusive, royalty-free license for all non-US marketplaces for their proprietary B2B software platforms and service solutions. Canopy Rivers has committed an initial equity investment of US$2 million and has the option to invest an incremental US$6 million on preferred terms. LeafLink and Canopy Rivers hold approximately 82 percent, and 18 percent, respectively, of LeafLink International after the initial transaction. Both parties will work collaboratively on the continued development and deployment of the LeafLink technology platform throughout international marketplaces, having already launched in select Canadian markets.
