VIVO Cannabis™ Withdraws $5 Million Offering and Provides Business Update
TORONTO, Oct. 16, 2020 /CNW/ - VIVO Cannabis Inc. (TSX: VIVO) (OTCQX: VVCIF) ("VIVO" or the "Company") announced today that it is terminating a planned offering of $5.1 million, which it had previously announced on October 6, 2020.
The decision to terminate the offering was taken amidst what the Company views as highly unusual trading activity in VIVO's shares. During the two days following the announcement of the offering, trading volume increased by approximately 8,000% to a cumulative total of 18,980,048 shares, compared with 236,517 shares traded in the two days prior to the announcement.
"While VIVO is unaware of the reasons for the increased trading activity and downward pressure on our stock price, we have reported last week's highly unusual trading activity to securities regulators," said Barry Fishman, CEO of VIVO. "We are hoping that in the short-term, trading activity will stabilize at a level that reflects VIVO's current business fundamentals, recent achievements and future potential."
The Ontario Securities Commission (OSC) and the Investment Industry Regulatory Organization of Canada (IIROC) jointly announced on October 1, 2020 that they are encouraging the submission of tips related to potential abusive trading in securities of Ontario reporting issuers, including illegal insider trading, market manipulation or abusive short selling. In particular, they are seeking specific and credible evidence about short selling into or ahead of public offerings or private placements of Ontario securities.
All VIVO insiders have been and remain subject to a regularly scheduled trading blackout until at least after the Company announces its Q3 2020 results, which is anticipated to be in mid-November.
Business Update
During the past few months, VIVO's business fundamentals continue to strengthen with several notable successes:
- Achieved a leading position in the cannabis concentrates category
- Initiated the largest harvest in the company's history in Napanee, Ontario
- Canna Farms was named the fourth most recognized cannabis brand among Canadian consumers
- Expanded market access, including product listings in Quebec and with Medical Cannabis by Shoppers™
- Restructured $27 million in current liabilities, leaving the Company with $6.6 million in 6% convertible debt due 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™, Fireside-X™, 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. For more information visit: www.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 potential future offerings by the Company, the potential terms of same, the filing of any prospectus supplement with respect thereto, proposed use of proceeds, assuming completion, the anticipated closing date and the satisfaction of all necessary closing conditions, including the approval of the TSX. 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 COVID-19 pandemic may last longer and have a more significant impact on the Company's operations, financing abilities, the Canadian cannabis industry, or the global economy generally, than currently expected; 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 management's discussion and analysis for the three months ended June 30, 2020, 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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