NAPANEE, ON, June 20, 2019 /CNW/ - VIVO Cannabis Inc.
(TSX-V: VIVO, OTCQX: VVCIF) ("VIVO" or the
"Company") is pleased to announce that it has made a
$1.25 million strategic investment in
Friendly Stranger Holdings Corp. ("Friendly
Stranger"), a longstanding retail champion of cannabis culture.
The investment is intended to facilitate Friendly Stranger's
aggressive cannabis retail expansion plans, with a goal of bringing
multiple retail stores to the Canadian market.
"VIVO is focused on expanding capacity and increasing production
capability to help meet the growing demand for cannabis among
recreational users," stated Barry
Fishman, Chief Executive Officer of VIVO. "Friendly Stranger
has been an iconic brand in the Canadian cannabis sector for more
than 25 years and we believe trusted retailers are integral to
showcasing our premium family of brands, including Canna Farms™,
Fireside™, and Lumina™. We have actively sought strategic
partnerships with retailers to establish strong relationships with
existing and future leaders in the cannabis industry. We look
forward to working with Friendly Stranger to advance their premium
adult-use cannabis retail strategy in Ontario and throughout Canada."
"We look forward to welcoming VIVO to the Friendly Stranger
family," said James Jesty,
President, Friendly Stranger Holdings Corp. "With a strategic
investment from VIVO, we have additional capital to execute the
first phase of our growth strategy to scale and evolve the
business. This will include operating several locations fully
licenced to sell adult-use cannabis, pending Ontario granting additional licences. VIVO is
an ideal partner for us and their line of premium cannabis products
aligns well with our brand."
VIVO Strategic Investment
VIVO has agreed to acquire, through a wholly-owned subsidiary:
(i) 187,500 Class A common shares in the capital of Friendly
Stranger at a price of $4.00 per
share for an aggregate purchase price of $750,000, and (ii) an unsecured convertible
debenture of Friendly Stranger in the principal amount of
$500,000, for a total investment of
$1,250,000. The debenture will bear
interest at the rate of 6.0% per annum, have a maturity date of
June 19, 2021, and be convertible, at
the option of VIVO, into Class A common shares of Friendly Stranger
at a conversion price of $5.00 per
share, subject to adjustment and certain limitations as provided in
the debenture certificate.
VIVO and Friendly Stranger have also entered into a preferred
partnership agreement pursuant to which, among other things, the
parties have agreed to collaborate on obtaining Friendly Stranger's
cannabis retail licence, conducting in-store events, and leveraging
co-branding opportunities.
About Friendly Stranger Holdings Corp:
Established in 1994, Friendly Stranger is Canada's most iconic cannabis culture shop and
is widely revered for its friendly and knowledgeable service.
In 2018, after an initial investment from Green Acre Capital,
Friendly Stranger established Friendly Stranger Holdings Corp
("FSHC") and announced an expansion plan to open additional retail
locations across the country. In 2019, FSHC acquired Happy Dayz and
with this merger, FSHC now operates 10 retail locations in
Ontario with over 200,000 customer
visits per year.
www.friendlystranger.com www.happy-dayz.ca Instagram:
@the_friendly_stranger
@happy.dayz420 Twitter: @friendlystrnger @happy_dayz
Facebook: Friendlystranger Happy.dayz.ca
About VIVO Cannabis™
VIVO, based in Napanee, Ontario, is recognized for trusted, premium
cannabis products and services. It holds production and sales
licences from Health Canada and operates world-class indoor
cultivation facilities with proprietary plant-growing technology at
its Canna Farms facility in Hope,
B.C., and at its Vanluven facility in Napanee, Ontario. VIVO has a collection of
premium brands targeting unique customer segments, including Beacon
Medical™, Fireside™, Canna Farms™ and Lumina™. The Company is
significantly expanding its production capacity and distribution
channels; growing its domestic medical cannabis platform, including
Harvest Medicine, its patient-centric, highly scalable network of
specialty medical cannabis clinics and services; promoting
production and cultivation innovation and pursuing partnership and
product development opportunities; and actively focusing on growth
in select international markets, including Germany and Australia. VIVO has a healthy balance sheet
and is well-positioned to accelerate its growth in Canada and internationally. For more
information visit: www.vivocannabis.com
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD OF DIRECTORS
Barry Fishman
CEO and Director
Disclaimer for Forward-Looking Statements
Statements regarding Friendly Stranger business, proposed use
of proceeds of the financing and future goals are based solely on
information provided by Friendly Stranger Holdings Corp. This news
release contains forward-looking statements, including statements
regarding the expected use of proceeds by Friendly Stranger,
Friendly Stranger's proposed strategy to
become a premium adult-use cannabis
retailer, and VIVO's future opportunities
outlook. The forward-looking statements contained in this
news release are based on certain assumptions and involve known and
unknown risks and uncertainties and other factors that could cause
actual events to differ materially from current assumptions and
expectations, including that: Friendly Stranger may be
unable to obtain necessary regulatory approvals for, or
to effectively operate, one or more cannabis retail
stores; Friendly Stranger may not
become a successful premium adult-use cannabis
retailer; regulations may restrict or
prohibit the supply of cannabis products
by VIVO to Friendly Stranger or
other proposed activities by VIVO and/or Friendly Stranger;
cannabis marketing regulations may impede the execution of Friendly
Stranger's retail strategy; and other factors beyond the
Company's control. The forward-looking statements contained
in this news release should not be read as guarantees of future
performance or results. 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, 2018 and its other continuous disclosure filings,
which are available on SEDAR
at www.sedar.com. Readers are
cautioned not to place undue reliance on these 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.
