NAPANEE, ON, April 3, 2020 /CNW/ - VIVO Cannabis Inc.
(TSX: VIVO, OTCQX: VVCIF) ("VIVO" or the
"Company") announces that it has re-purchased for
cancellation certain of its outstanding 6.0% unsecured convertible
debentures (each, a "Debenture"), in the aggregate principal
amount of $10 million, for a purchase
price of $9.3 million (plus accrued
and unpaid interest thereon), representing a 7% discount to the
face value, pursuant to an agreement with the holder thereof (the
"Holder"). As a result of the repurchase, the Company now
has Debentures in the aggregate principal amount of $24.5 million due February
28, 2021.
The Company intends to amend the debenture indenture dated
February 28, 2018 to provide the
remaining holders of the Debentures (other than the Holder) with a
pro rata right of repurchase, at the option of each remaining
holder, on the same terms as the Holder, until April 30, 2020. In the event that all remaining
holders exercise this right of repurchase, the Company would cancel
a total of an additional $1,500,000
of Debentures for aggregate consideration of $1,395,000.
"As evidenced by our recent financial results, VIVO continues to
enjoy a strong cash position," stated Barry
Fishman, VIVO's Chief Executive Officer. "Repurchasing these
debentures at a 7% discount, together with the termination of
future interest that would otherwise have accrued to the maturity
date of February 28, 2021, will
result in savings to VIVO of between approximately $1.25 million and $1.43
million, which will further enable us to pursue our goals of
increasing shareholder value and becoming profitable."
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: www.vivocannabis.com
ON BEHALF OF THE BOARD OF DIRECTORS
Barry Fishman
CEO and Director
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 proposed amendment to the
Debenture indenture. 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.
