Rightsizing of Napanee
Organization
Board and Leadership Changes
TORONTO, Oct. 20, 2020 /CNW/ - VIVO Cannabis Inc.
(TSX: VIVO) (OTCQX: VVCIF) ("VIVO" or
the "Company") today announced immediate
steps to streamline operations and changes to the Board and
Leadership Team.
Organizational Rationalization, including an 18% Reduction in
Headcount
The Company is dedicated to delivering differentiated cannabis
products and services while carefully managing expenses, with a
target of achieving positive adjusted EBITDA during the first half
of 2021.
"Our goal is to make VIVO a stronger, more focused company by
leveraging synergies between our business units and adapting to the
realities of the market," said Barry
Fishman, Chief Executive Officer. "This includes making the
difficult decision to reduce our workforce, a move that was not
taken lightly, and we remain grateful to all those affected for
their previous efforts and contributions. These changes will allow
VIVO to reduce costs by specializing resources and streamlining our
organizational structure."
The streamlining initiatives are expected to accelerate the
timeframe to achieving positive operating cash flow. Approximately
18% of overall Company headcount (roughly 45 positions) will be
eliminated this week, the vast majority from the rightsizing of
Napanee operations.
After completing a strategic review of VIVO's overall Canadian
cannabis operations, the Napanee-based organization has been
re-purposed to focus on low-cost cultivation (airhouse-grown) and
the extraction and manufacturing of VIVO's growing line of Cannabis
2.0 concentrates. To allow the Company to capitalize on economies
of scale and reduce costs, certain other activities (i.e. packaging
and distribution) will be centralized at the Canna Farms facility
in Hope B.C.
VIVO will also be monetizing non-core assets, and capital
expenditures will be curtailed as all major facility projects have
been completed. The actions taken this week will better align the
business with the demands and evolution of the cannabis market, and
well-position the Company for future profitable growth.
Board and Leadership Changes
Dan Laflamme has decided to step
down as President, Canna Farms and a Director of the Company.
Ray Laflamme, co-founder of Canna
Farms, has been appointed interim President, Canna Farms to ensure
a smooth transition.
"The entire VIVO team and Board would like to thank Dan for his
significant contributions to the Company, and to his family for
their support. We wish them well as they spend some well-earned
time together." said Barry Fishman.
"As a co-founder of Canna Farms and one of the pioneers of the
Canadian cannabis industry, we are grateful to Dan for his vision,
leadership, integrity and passion. We are also fortunate to have
Ray accept the Canna Farms interim President role. Ray brings
significant institutional knowledge about the business and his
continued leadership will serve us well."
Dan Laflamme added, "The past
seven years have been a wonderful experience and I have enjoyed
working with the Canna Farms team and everyone across the other
VIVO businesses. Although I am resigning from my active role with
the Company, I will certainly continue to support VIVO and Canna
Farms as they enter the next phase of growth."
VIVO also announced changes to its senior leadership team to
best support the execution of its strategic priorities. The Company
will now be more aligned on centralized functions, replacing the
previous business unit focus. The VIVO senior leadership team,
effective immediately, is summarized below:
Barry
Fishman:
|
Chief Executive
Officer and Director
|
Michael
Bumby:
|
Chief Financial
Officer
|
Carole
Chan:
|
Chief People Officer
and President, Harvest Medicine
|
Tim
Hayden:
|
Chief Business
Officer
|
Matt
Patterson:
|
Chief Commercial
Officer
|
Ray
Laflamme:
|
Interim President,
Canna Farms
|
Andreas
Sander:
|
President, European
Operations
|
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. 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™. 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. 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.