NAPANEE, ON, Aug. 6, 2019 /CNW/ - VIVO Cannabis Inc.
(TSX-V: VIVO, OTCQX: VVCIF) ("VIVO" or the
"Company") today announced that the Company's wholly-owned
subsidiary, ABcann Medicinals Inc., has been granted a Standard
Cultivation licence from Health Canada for its Kimmetts facility.
Kimmetts, an innovative seasonal greenhouse site in Napanee, Ontario, is VIVO's third licensed
production facility. Phase 1 of the planned development of
Kimmetts includes four positive-pressure airhouse structures
with 86,000 square feet of cultivation space. The new site
will increase the Company's annualized cultivation capacity by
4,000 kilograms, bringing its total internal licensed capacity to
over 12,000 kilograms.
"This approval represents another significant milestone
achievement for VIVO and a major step toward helping us reach our
business goals," said Barry Fishman,
CEO of VIVO. "I am extremely proud of our Napanee team demonstrating that innovation and
a focus on quality are part of our DNA. Our team in Napanee, as well as the team at Health Canada,
worked tirelessly during the approval process. We applaud Health
Canada's efforts in playing a vital role in ensuring a safe
cannabis supply chain for Canadians."
The timing of the receipt of the licence for the Kimmetts
facility corresponds with the additional extraction capabilities
being brought on-line at VIVO's state-of-the-art Vanluven facility
in Napanee.
"The Kimmetts facility is expected to provide VIVO with high
quality, low-cost cannabis flowers, as well as input material to
create value-added products, such as edibles, extracts and
concentrates needed for our collection of premium brands, including
Beacon Medical™, Fireside™, Canna Farms™ and Lumina," stated
Mr. Fishman. "Bringing significant extraction operations in-house
to Napanee is expected to enhance
VIVO's ability to broaden its intellectual property and product
lines as well as enhance our competitive position in the
market."
VIVO expects to have year-end annualized cannabis cultivation
capacity of 30,000 kilograms and 50,000 kilograms by 2020 and 2021,
respectively. Third party suppliers are expected to add an
additional 25,000 kilograms of capacity by year-end 2021.
Additionally, the Napanee Operations will have extraction
processing capacity of 50,000 kilograms by the end of the fourth
quarter of 2019.
VIVO is the only Canadian licensed producer employing the
innovative airhouse technology used at the Kimmetts site, which has
been incorporated in several US states to produce high-quality
cannabis at low cost without the significant capital investment
required to build traditional greenhouses or indoor grows. It is
expected that planting at the Kimmetts site will commence
immediately, in order to position the Company to begin first
harvest in the fall of 2019.
Because of Health Canada's requirement for all board members to
have security clearances in place prior to the issuance of a
licence, Daryl Kramp and
Richard Fitzgerald have resigned
from VIVO's board of directors pending review and approval of their
security clearance submissions. This move expedited the approval of
the Kimmetts license, providing the opportunity to commence
cultivation and enhance revenue generation for VIVO later in 2019.
Messrs. Kramp and Fitzgerald will continue to serve the Company in
an advisory capacity and are expected to be re-appointed to the
board if and when they obtain their security clearances.
About VIVO Cannabis™
VIVO, based in Napanee,
Ontario, is recognized for trusted, premium cannabis
products and services. It holds production and sales licenses 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
ON BEHALF OF THE BOARD OF DIRECTORS
Barry Fishman
CEO and Director
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.
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 Company's expected production and processing
capacity; the time of the expected first harvest from the Kimmetts
site; that the Kimmetts site is expected to produce high quality,
low-cost cannabis flowers and input material to create value-added
products; the Company's expectation that Mr. Fitzgerald and Mr.
Kramp will be re-appointed to the board subject to the review and
approval of their security clearances; and the Company's intent to
pursue opportunities domestically and internationally. 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 Company may not be able to achieve its production capacity
targets at some or all of its facilities; that the cannabis
cultivated at the Kimmetts site may not be of the quality expected
or may cost more to produce than expected; that the Company may not
be able to obtain necessary licences for sale of its products; that
the security clearance submissions for Mr. Fitzgerald and/or Mr.
Kramp may not be approved by Health Canada; that the Company may be
unable to retain its key talent; that the Company may not obtain
necessary regulatory approvals; 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, 2018, 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.
