Also Announces Termination of Automatic
Securities Disposition Plan
/THIS NEWS RELEASE IS INTENDED FOR
DISTRIBUTION IN CANADA ONLY AND IS
NOT INTENDED FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, June 18, 2020 /CNW/ - VIVO Cannabis
Inc. (TSX: VIVO) (OTCQX: VVCIF) ("VIVO" or the
"Company") announces that it has filed a preliminary short
form base shelf prospectus (the "Shelf Prospectus") with
securities regulatory authorities in each province of Canada.
"The Shelf Prospectus will provide us with greater flexibility
to access capital on an expedited basis if and when required," said
Barry Fishman, Chief Executive
Officer of VIVO. "While we have no immediate plans to draw capital
down under the Shelf Prospectus, it will be a tool available to
help us continue to grow VIVO's business and further execute on our
strategic plan."
When final, the Shelf Prospectus will enable the Company to
offer common shares, debt securities, convertible securities,
subscription receipts, warrants, units or any combination thereof
for aggregate gross proceeds of up to $100
million during the 25 month period the Shelf Prospectus is
effective.
If the Company proceeds with an offering of securities under the
Shelf Prospectus, the specific terms, the proposed use of proceeds
and other matters related to such offering will be set out in a
prospectus supplement, which will be filed with all applicable
Canadian securities regulatory authorities. The Company may also
use the Shelf Prospectus in connection with an "at-the-market
distribution" in accordance with applicable securities laws, which
would permit securities to be sold on behalf of the Company through
the Toronto Stock Exchange (or other applicable stock exchange) as
further described in the applicable prospectus supplement. To date,
no agreement has been entered into with respect to such a
distribution.
The Shelf Prospectus can be found under the Company's profile on
SEDAR at www.sedar.com.
The Company is also pleased to announce the termination of the
automatic securities disposition plan (the "Plan") of NPK
Holdings Limited ("NPK"), a company owned by Dan Laflamme, a director and senior officer of
the Company, which initially became effective on September 1, 2019. Under the Plan, which was
intended to have a 12-month term, up to 100,000 shares could be
sold per week (up to 5.2 million total over the 12-month term of
the Plan). Mr. Laflamme has advised the Company that neither he nor
NPK is aware of, or in possession of, any material non-public
information regarding the Company or its subsidiaries, or any
securities of the Company, as at the date hereof. Sales under the
Plan are expected to terminate on or about June 22, 2020, following completion of
administrative steps necessary to effect the termination.
Additional information regarding Mr. Laflamme's recent trading
activities can be found in his early warning report and news
release of today's date, available under the Company's profile on
SEDAR at www.sedar.com.
This news release does not constitute an offer to sell, or the
solicitation of an offer to buy, any securities of the Company, nor
will there be any offering or sale of such securities, in any
jurisdiction in which such offer, solicitation or sale would be
unlawful absent registration or qualification of such securities
under the applicable laws of any such jurisdiction, including
the United States.
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. The Company has a healthy balance
sheet and is well-positioned to accelerate its path to
profitability. 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 final
prospectus or prospectus supplement with respect thereto, and the
expected date of termination of sales under the Plan. 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 obtain a final receipt for the Shelf
Prospectus or any other necessary regulatory approvals; that there
may be no financing available to the Company on satisfactory terms
or at all, if and when the Company wishes to draw capital down
under the Shelf Prospectus; that the administrative processes
necessary to terminate the Plan may take longer than expected; 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 March 31,
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.
