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.
https://www.osc.gov.on.ca/en/NewsEvents_nr_20201001_osc-and-iiroc-appeal-for-tips-on-abusive-trading.htm
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.