NAPANEE, ON, June 22, 2020 /CNW/ - VIVO Cannabis
Inc. (TSX: VIVO) (OTCQX: VVCIF) ("VIVO" or
the "Company") today announced its wholly-owned subsidiary,
Canna Farms Limited ("Canna Farms"), has received all
necessary Health Canada approvals to commence operations in its
Phase 5 expansion, and that its wholly-owned subsidiary, ABcann
Medicinals Inc. ("NCC"), has begun commercial production in
its ethanol extraction suite.
Facility Expansion Approval in Hope, British Columbia
The Phase 5 expansion consists of 10,000 square feet of
production space customized to incorporate Canna Farms' two-tier
growing systems, as well as vegetative rooms, mother rooms, storage
vaults and processing rooms.
The two-tier growing system project was initiated in early 2019
and underwent extensive research and development to ensure that
Canna Farms' yield, potency and product quality standards are
maintained.
"Health Canada's approval of
Phase 5 is a major milestone for the Canna Farms team because our
two-tiered approach will allow us to grow twice as many plants in
the same footprint as most conventional cultivators, allowing us to
meet the growing demand for craft quality cannabis," said
Dan Laflamme, President of Canna
Farms.
"In addition to our two-tiered production, Phase 5 is equipped
with three processing rooms to provide space for our automated
pre-rolled machine, expected to be commissioned this summer, and
for expanded production of our solvent-less extracts including
kief, bubble hash, and various forms of rosin," explained Mr.
Laflamme.
The new facility expansion is expected to start operating
immediately as clones and processing equipment have already been
sourced in preparation for licensing, accelerating VIVO's use of
the space by several weeks.
New Extraction Suite in Napanee,
Ontario
The commissioning of NCC's ethanol extraction suite has also
been completed and commercial production is underway. The
extraction system has the capacity to process up to 200 kilograms
of dry biomass per day. Additionally, distillate is now being
produced at NCC using a new distillation column. The resulting high
quality, low production cost resins and distillates will be used as
inputs for VIVO's oil, vape cartridge, and other Cannabis 2.0
products and will complement Canna Farms' solvent-less
concentrates.
"We are excited to bring our ethanol extraction processes
on-line, particularly given the strong demand for the concentrates
that we are now producing," said Gary
McMullen, NCC President. "The team in Napanee is proud to now be able to process our
home-grown strains into multiple premium quality product formats.
Bringing the manufacturing of these extracts in-house rather than
using third-party suppliers is expected to significantly reduce our
product costs and allow us to tightly control our product
quality."
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
https://www.instagram.com/vivo_cannabis/
https://www.linkedin.com/company/vivo-cannabis-inc/
https://www.facebook.com/vivocanna/
https://twitter.com/vivo_cannabis?lang=en
Disclaimer for Forward-Looking Information
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 expected products to be produced at the Phase 5
expansion; the increased yields to be generated from the two-tier
growing system; the expected timing of commissioning of Canna
Farms' automated pre-rolled machine; the expected timing of
commencement of operations at the Phase 5 expansion; and the
expected capacity that can be processed via NCC's extraction suite
as well as expected reduced production costs and increased product
quality. 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 issues may occur that delay production
at the Phase 5 expansion or commissioning of the automated
pre-rolled machine; that the two-tiered growing system does not
result in the expected increased production capacity; that
the Company may not realize the expected production cost decreases
and increased product quality from the NCC extraction suite; 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; that changes in regulations may adversely
impact the Company's business; 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.