TORONTO, Sept. 24, 2020 /CNW/ - VIVO Cannabis
Inc. (TSX: VIVO) (OTCQX: VVCIF) ("VIVO" or the
"Company") today announced that it has completed its
previously announced partial prepayment, conversion and amendment
of unsecured convertible debentures (the "Debentures").
As a result, VIVO now has $6.6
million in outstanding Debentures due September 15, 2022 and 328.7 million common
shares (each, a "Share") outstanding on an undiluted basis.
"One of our key objectives at the beginning of the year was to
mitigate our financial risk profile and reducing our total debt
helps achieve that objective," said Barry
Fishman, CEO of VIVO. "We can now better focus on our core
competencies and continue on the path toward near-term
profitability."
In connection with the refinancing, the Company: (i) prepaid
44.32% of the previously outstanding $23.6
million principal amount of the Debentures, being
$10.5 million, and (ii) converted
27.84% of the previously outstanding principal amount of the
Debentures, being $6.6 million, on a
pro rata basis, into an aggregate of 32.8 million units of the
Company (each, a "Unit") at a price of $0.2004 per Unit, leaving Debentures in the
principal amount of $6.6 million
outstanding. Each Unit was comprised of one Share and one half of
one share purchase warrant, with each whole warrant entitling the
holder to acquire one Share at an exercise price of $0.2672 until 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™,
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: 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 the Company's plan to proceed
on a path to near-term profitability. 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.