VIVO Announces 50% Increase in Licensed Capacity and Third Licensed Site with New Innovative Seasonal Greenhouses
NAPANEE, ON, Aug. 6, 2019 /CNW/ - VIVO Cannabis Inc. (TSX-V: VIVO, OTCQX: VVCIF) ("VIVO" or the "Company") today announced that the Company's wholly-owned subsidiary, ABcann Medicinals Inc., has been granted a Standard Cultivation licence from Health Canada for its Kimmetts facility. Kimmetts, an innovative seasonal greenhouse site in Napanee, Ontario, is VIVO's third licensed production facility. Phase 1 of the planned development of Kimmetts includes four positive-pressure airhouse structures with 86,000 square feet of cultivation space. The new site will increase the Company's annualized cultivation capacity by 4,000 kilograms, bringing its total internal licensed capacity to over 12,000 kilograms.
"This approval represents another significant milestone achievement for VIVO and a major step toward helping us reach our business goals," said Barry Fishman, CEO of VIVO. "I am extremely proud of our Napanee team demonstrating that innovation and a focus on quality are part of our DNA. Our team in Napanee, as well as the team at Health Canada, worked tirelessly during the approval process. We applaud Health Canada's efforts in playing a vital role in ensuring a safe cannabis supply chain for Canadians."
The timing of the receipt of the licence for the Kimmetts facility corresponds with the additional extraction capabilities being brought on-line at VIVO's state-of-the-art Vanluven facility in Napanee.
"The Kimmetts facility is expected to provide VIVO with high quality, low-cost cannabis flowers, as well as input material to create value-added products, such as edibles, extracts and concentrates needed for our collection of premium brands, including Beacon Medical™, Fireside™, Canna Farms™ and Lumina," stated Mr. Fishman. "Bringing significant extraction operations in-house to Napanee is expected to enhance VIVO's ability to broaden its intellectual property and product lines as well as enhance our competitive position in the market."
VIVO expects to have year-end annualized cannabis cultivation capacity of 30,000 kilograms and 50,000 kilograms by 2020 and 2021, respectively. Third party suppliers are expected to add an additional 25,000 kilograms of capacity by year-end 2021. Additionally, the Napanee Operations will have extraction processing capacity of 50,000 kilograms by the end of the fourth quarter of 2019.
VIVO is the only Canadian licensed producer employing the innovative airhouse technology used at the Kimmetts site, which has been incorporated in several US states to produce high-quality cannabis at low cost without the significant capital investment required to build traditional greenhouses or indoor grows. It is expected that planting at the Kimmetts site will commence immediately, in order to position the Company to begin first harvest in the fall of 2019.
Because of Health Canada's requirement for all board members to have security clearances in place prior to the issuance of a licence, Daryl Kramp and Richard Fitzgerald have resigned from VIVO's board of directors pending review and approval of their security clearance submissions. This move expedited the approval of the Kimmetts license, providing the opportunity to commence cultivation and enhance revenue generation for VIVO later in 2019. Messrs. Kramp and Fitzgerald will continue to serve the Company in an advisory capacity and are expected to be re-appointed to the board if and when they obtain their security clearances.
About VIVO Cannabis™
VIVO, based in Napanee, Ontario, is recognized for trusted, premium cannabis products and services. It holds production and sales licenses from Health Canada and operates world-class indoor cultivation facilities with proprietary plant-growing technology at its Canna Farms facility in Hope, B.C., and at its Vanluven facility in Napanee, Ontario. VIVO has a collection of premium brands targeting unique customer segments, including Beacon Medical™, Fireside™, Canna Farms™ and Lumina™. The Company is significantly expanding its production capacity and distribution channels; growing its domestic medical cannabis platform, including Harvest Medicine, its patient-centric, highly scalable network of specialty medical cannabis clinics and services; promoting production and cultivation innovation and pursuing partnership and product development opportunities; and actively focusing on growth in select international markets, including Germany and Australia. VIVO has a healthy balance sheet and is well-positioned to accelerate its growth in Canada and internationally. For more information visit: www.vivocannabis.com
ON BEHALF OF THE BOARD OF DIRECTORS
Barry Fishman
CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
Certain statements in this news release are forward-looking statements, which are statements that are not purely historical, including statements regarding the beliefs, plans, expectations or intentions of VIVO and its management regarding the future. Forward-looking statements in this news release include statements regarding: the Company's expected production and processing capacity; the time of the expected first harvest from the Kimmetts site; that the Kimmetts site is expected to produce high quality, low-cost cannabis flowers and input material to create value-added products; the Company's expectation that Mr. Fitzgerald and Mr. Kramp will be re-appointed to the board subject to the review and approval of their security clearances; and the Company's intent to pursue opportunities domestically and internationally. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements, including: that the Company may not be able to achieve its production capacity targets at some or all of its facilities; that the cannabis cultivated at the Kimmetts site may not be of the quality expected or may cost more to produce than expected; that the Company may not be able to obtain necessary licences for sale of its products; that the security clearance submissions for Mr. Fitzgerald and/or Mr. Kramp may not be approved by Health Canada; that the Company may be unable to retain its key talent; that the Company may not obtain necessary regulatory approvals; and other factors beyond the Company's control. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors, and the more extensive risk factors included in the Company's annual information form for the year ended December 31, 2018, which is available on SEDAR, carefully in evaluating the forward-looking statements contained in this news release, and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements in this news release are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
SOURCE VIVO Cannabis Inc.
VIVO Investor Relations, Michael Bumby, Chief Financial Officer, +1 416-848-9839, [email protected]
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