Also Announces Termination of Automatic Securities Disposition Plan
/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, June 18, 2020 /CNW/ – VIVO Cannabis Inc. (TSX: VIVO) (OTCQX: VVCIF) ("VIVO" or the "Company") announces that it has filed a preliminary short form base shelf prospectus (the "Shelf Prospectus") with securities regulatory authorities in each province of Canada.
"The Shelf Prospectus will provide us with greater flexibility to access capital on an expedited basis if and when required," said Barry Fishman, Chief Executive Officer of VIVO. "While we have no immediate plans to draw capital down under the Shelf Prospectus, it will be a tool available to help us continue to grow VIVO’s business and further execute on our strategic plan."
When final, the Shelf Prospectus will enable the Company to offer common shares, debt securities, convertible securities, subscription receipts, warrants, units or any combination thereof for aggregate gross proceeds of up to $100 million during the 25 month period the Shelf Prospectus is effective.
If the Company proceeds with an offering of securities under the Shelf Prospectus, the specific terms, the proposed use of proceeds and other matters related to such offering will be set out in a prospectus supplement, which will be filed with all applicable Canadian securities regulatory authorities. The Company may also use the Shelf Prospectus in connection with an "at-the-market distribution" in accordance with applicable securities laws, which would permit securities to be sold on behalf of the Company through the Toronto Stock Exchange (or other applicable stock exchange) as further described in the applicable prospectus supplement. To date, no agreement has been entered into with respect to such a distribution.
The Shelf Prospectus can be found under the Company’s profile on SEDAR at www.sedar.com.
The Company is also pleased to announce the termination of the automatic securities disposition plan (the "Plan") of NPK Holdings Limited ("NPK"), a company owned by Dan Laflamme, a director and senior officer of the Company, which initially became effective on September 1, 2019. Under the Plan, which was intended to have a 12-month term, up to 100,000 shares could be sold per week (up to 5.2 million total over the 12-month term of the Plan). Mr. Laflamme has advised the Company that neither he nor NPK is aware of, or in possession of, any material non-public information regarding the Company or its subsidiaries, or any securities of the Company, as at the date hereof. Sales under the Plan are expected to terminate on or about June 22, 2020, following completion of administrative steps necessary to effect the termination. Additional information regarding Mr. Laflamme’s recent trading activities can be found in his early warning report and news release of today’s date, available under the Company’s profile on SEDAR at www.sedar.com.
This news release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities of the Company, nor will there be any offering or sale of such securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful absent registration or qualification of such securities under the applicable laws of any such jurisdiction, including the United States.
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
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 potential future offerings by the Company, the potential terms of same, the filing of any final prospectus or prospectus supplement with respect thereto, and the expected date of termination of sales under the Plan. 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 obtain a final receipt for the Shelf Prospectus or any other necessary regulatory approvals; that there may be no financing available to the Company on satisfactory terms or at all, if and when the Company wishes to draw capital down under the Shelf Prospectus; that the administrative processes necessary to terminate the Plan may take longer than expected; 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 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.