VIVO Cannabis™ Completes Debenture Refinancing
TORONTO, Sept. 24, 2020 /CNW/ - VIVO Cannabis Inc. (TSX: VIVO) (OTCQX: VVCIF) ("VIVO" or the "Company") today announced that it has completed its previously announced partial prepayment, conversion and amendment of unsecured convertible debentures (the "Debentures").
As a result, VIVO now has $6.6 million in outstanding Debentures due September 15, 2022 and 328.7 million common shares (each, a "Share") outstanding on an undiluted basis.
"One of our key objectives at the beginning of the year was to mitigate our financial risk profile and reducing our total debt helps achieve that objective," said Barry Fishman, CEO of VIVO. "We can now better focus on our core competencies and continue on the path toward near-term profitability."
In connection with the refinancing, the Company: (i) prepaid 44.32% of the previously outstanding $23.6 million principal amount of the Debentures, being $10.5 million, and (ii) converted 27.84% of the previously outstanding principal amount of the Debentures, being $6.6 million, on a pro rata basis, into an aggregate of 32.8 million units of the Company (each, a "Unit") at a price of $0.2004 per Unit, leaving Debentures in the principal amount of $6.6 million outstanding. Each Unit was comprised of one Share and one half of one share purchase warrant, with each whole warrant entitling the holder to acquire one Share at an exercise price of $0.2672 until September 15, 2022.
About VIVO Cannabis™
VIVO Cannabis™ is recognized for trusted, premium cannabis products and services. It holds production and sales licences from Health Canada and operates world-class indoor and seasonal airhouse cultivation facilities with proprietary plant-growing technology in Hope, British Columbia and Napanee, Ontario. VIVO has a collection of premium brands, each targeting different customer segments, including Canna Farms™, Beacon Medical™, Fireside™, Lumina™ and Canadian Bud Collection™. The Company is expanding its production capabilities and distribution network. Harvest Medicine, VIVO's patient-centric, scalable network of medical cannabis clinics, has serviced over 100,000 patient visits. VIVO is pursuing several partnership and product development opportunities and is focusing its international efforts on Germany and Australia. The Company has a healthy balance sheet and is well-positioned to accelerate its path to profitability. For more information visit: vivocannabis.com.
Disclaimer for Forward-Looking Information
All dollar amounts in this news release are in Canadian dollars. 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 plan to proceed on a path to near-term profitability. Forward-looking 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 procedural delays may impact the expected timing of completion thereof, 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, 2019, 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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