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/R E P E A T — VIVO Cannabis™ Announces Second Quarter 2020 Results/

VIVO Cannabis Inc. Logo (CNW Group/VIVO Cannabis Inc.)

  • Net revenue of $9.4 million – an increase of 15% over Q1 2020 and 79% over Q2 2019

  • Achieved 68% Ontario retail market share in the concentrates category, including first-to-market shatter by Fireside™ X

  • Entered product supply and clinical services agreements with Medical Cannabis by Shoppers™

  • Canna Farms™ is the fourth most recognized cannabis brand, according to recent Brightfield Group independent survey

  • Largest export shipment to Australia occurred during the quarter

VIVO) (OTCQX: VVCIF) ("VIVO" or the "Company") today released its second quarter 2020 financial and operating results.” data-reactid=”29″>TORONTO, Aug. 14, 2020 /CNW/ – VIVO Cannabis Inc. (TSX: VIVO) (OTCQX: VVCIF) (“VIVO or the “Company“) today released its second quarter 2020 financial and operating results.

Gross and net revenue for Q2 2020 were $12.7 million and $9.4 million, respectively. On a net basis this represents a 15% increase quarter-over-quarter as compared to Q1 2020, driven largely by successful sales of VIVO’s Cannabis 2.0 products. When compared to Q2 2019, net revenue grew by approximately 79%.

Concentrates made up over half of VIVO’s cannabis sales revenue during the quarter, a testament to the Company’s strategic decision to be a leader in that space. This was offset by lower flower sales, resulting from decreased market demand in the wake of the COVID-19 pandemic.

VIVO continued to sustain top-tier prices for its medical and adult-use dry flower products, with a net average selling price (net of excise) of $6.07 per gram in Q2 2020.

The Company purchased third-party extraction inputs in Q2 2020. The internal extraction suite at its Vanluven facility is now able to provide these inputs and VIVO expects the gross margin on its vape and extract products will improve significantly.

Sales, general and administrative expenses were $4.7 million in Q2 2020, compared to $5.5 million in the first quarter, a reduction of 15%.

VIVO continues to maintain a healthy balance sheet through prudent management of operational expenses and a measured approach to capital expenditures. During Q2 2020, VIVO repurchased certain of its outstanding 6% unsecured convertible debentures in the aggregate principal amount of $10.9 million, for a discounted purchase price of $10.1 million (plus accrued and unpaid interest), leaving remaining debentures in the aggregate principal amount of $27.1 million outstanding. As a result, the Company will save approximately $1.35 million in interest and principal. Cash and cash equivalents (including short term investments but excluding strategic equity investments) as at June 30, 2020 were $22.2 million.

(P&L amounts in millions)

Q2 2020

Quarter Change

Q1 2020

Gross Revenue




Net Revenue








Adjusted EBITDA (1)




Cash and equivalents




Active patients (2)




Net flower price per gram




Product formats





Adjusted EBITDA is not a measure of financial performance under IFRS. For the Company’s definition of Adjusted EBITDA, see the Company’s management’s discussion and analysis for the three and six months ended June 30, 2020, available under the Company’s profile at


Represents active patients (as of the end of the quarter) who purchase medical cannabis directly from the Company, including new temporary six-month extensions post March 13, 2020 based on Health Canada’s amendment due to COVID-19.

VIVO remains focused on executing against its four strategic priorities. In the first half of 2020, the Company has made significant progress in enhancing supply and production capabilities, expanding its customer network, increasing product innovation and accelerating its international medical business. VIVO believes that focusing on these four priorities will generate long-term shareholder value and accelerate the path to profitability.

VIVO continues to adhere to a measured and disciplined approach to capacity expansion and production capabilities by ensuring initiatives pursued are cost effective and will be capable of meeting growing patient and consumer demand.

  • Canna Farms’ 10,000 square foot Phase 5 expansion received all necessary Health Canada approvals in the quarter. Operational rooms are being fully utilized for storage and processing, and planting has commenced in the cultivation areas, using a two-tiered growing system.

  • Commissioning of the Vanluven facility’s ethanol extraction suite is complete and commercial production is underway. The resulting high quality, low production-cost resins and distillates will be used as inputs for VIVO’s oils, vape cartridges, and other Cannabis 2.0 products, such as the first Canadian-launched shatter by Fireside™ X.

  • Following planting in the first quarter of 2020, the seasonal airhouses at the Kimmetts facility now contain over 10,000 healthy plants, most of them over seven feet tall.

Canna Farms™ brand is one of the leading brands in the industry, known for producing award-winning, BC indoor-grown, craft cannabis flower and newly launched solvent-less extracts and edibles.” data-reactid=”62″>VIVO has a strong portfolio of brands in both the medical and adult-use markets. Its Canna Farms™ brand is one of the leading brands in the industry, known for producing award-winning, BC indoor-grown, craft cannabis flower and newly launched solvent-less extracts and edibles.

  • VIVO continued to maintain top-tier net pricing of $6.07 per gram of dry flower and implemented some price reductions to stay competitive within the premium market segment.

  • VIVO entered into a product supply agreement and a clinic services agreement with Medical Cannabis by Shoppers™. Under the terms of the supply agreement, VIVO’s licensed producers will offer a broad portfolio of Canna Farms™ and Beacon Medical™ branded medical cannabis products through the Medical Cannabis by Shoppers™ online sales platform to patients across Canada, including its latest Cannabis 2.0 offerings such as chocolates and extracts. Under the terms of the clinic services agreement, VIVO’s subsidiary, Harvest Medicine, will provide cannabis education services to patients who are appropriate candidates for cannabinoid-based products and provide consulting services to the Medical Cannabis by Shoppers™ Cannabis Care team.

  • VIVO entered into a collaboration agreement with Veterans’ House (“Veterans’ House“), under which the Company will provide sponsorship and support to joint programs for Canadian Armed Forces veterans. Veterans’ House is a federally registered non-profit organization that provides veterans suffering from mental illness and operational stress injuries, such as post-traumatic stress disorder, access to counseling and peer support programs.

  • In Q2 2020, VIVO began shipping products under its Canadian Bud Collection™, brand, which launched in Q1 2020 and is directed at the popular value segment of the market.

  • After temporarily realigning Harvest Medicine’s resources to provide patient-focused services through its telemedicine platform, HMED Connect, at the outset of the COVID-19 pandemic, Harvest Medicine clinics are now “patient ready”, with precautions in place to accommodate walk-in patients and help stop the spread of COVID-19, while continuing to offer patients online options to receive services.

VIVO has a strong commitment to pursuing innovation throughout its value chain. The Company is also using its robust data insights as a foundation for the development of novel products with a strong competitive edge and high margins.

  • During Q2 2020, VIVO made initial shipments of its Fireside X shatter product to several provincial wholesalers, including in British Columbia, where the provincial wholesaler sold its entire purchase within the first week. This is the fifth significant concentrates product format launched by VIVO, following Fireside vape cartridges, and Canna Farms’ bubble hash, kief and live rosin.

  • This month VIVO introduced Beacon Medical softgel capsules, available through its Canna Farms on-line medical marketplace. Beacon softgel capsules provide patients with a convenient format to ingest cannabis in a precise-dosed format, increasing choice for the Company’s more than 25,000 registered patients.

  • Subsequent to the signing of an exclusive agreement with Vertosa Inc., an infusion technology company based in Oakland, California, for Canadian production rights, Vertosa’s equipment has been installed at the Vanluven facility. VIVO expects to begin production of active emulsions using this technology for the cannabis beverage market in the coming months.

  • VIVO advanced into the next stage of product development with partner, Pharmascience Inc., a global pharmaceutical company based in Montreal, Quebec, for a unique line of specific medical cannabis formulations produced under pharmaceutical quality standards. VIVO believes that a significant catalyst to increased medical cannabis use is the introduction of new medical-grade, precise-dosed, stable formulations, which the partnership with Pharmascience is intended to target. The first products from this partnership are expected to be introduced in the Canadian market by the end of Q1 2021.

VIVO continues to pursue its international expansion strategy, leveraging its experience and leadership to enter new high-growth markets. The Company’s initial focus is on the German and Australian markets, which, combined, have a population of over 100 million people.

  • VIVO’s Australian business continues to rapidly advance, achieving record sales in Q2 2020. Australia’s Therapeutics Goods Administrator (TGA) reported a record number of new patient approvals in July of 2020 and triple digit growth in patient approvals year over year. VIVO is well positioned to capitalize on this rapidly growing market.

  • VIVO continued to advance its European expansion strategy through its partnership with Linneo Health, a Spanish-based EU-GMP certified supplier of pharma-grade cannabis. VIVO’s subsidiary, Beacon Medical Germany, is expecting final approval of Linneo product for import to Germany in late 2020.

  • Beacon Medical Germany was granted a narcotics licence in Germany, and is awaiting receipt of an import licence, the final permit necessary to facilitate imports from VIVO’s Vanluven facility and from other non-EU sources. EU-GMP certification of VIVO’s Vanluven Facility continues to advance, with a follow-up audit having recently been completed. The follow-up audit is an important step towards EU GMP-certification and is a requirement to import medical cannabis products from Canada for sale in Germany and other European countries.

VIVO continues to monitor COVID-19 developments and has implemented enhanced personal safety and sanitation protocols. VIVO’s production facilities are continuing operations and, to the Company’s knowledge, there have been no confirmed cases of COVID-19 among Company personnel. The Napanee and Hope facilities have extended hours and staggered shifts to facilitate physical distancing and ensure a safe work environment.


Monday, August 17, 2020


11:00 a.m. ET


647-427-7450 or 1-888-231-8191



LIVE WEBCAST:” data-reactid=”88″>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:

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SOURCE VIVO Cannabis Inc.

For further information: VIVO Investor Relations, Michael Bumby, Chief Financial Officer, +1 416-848-9839, [email protected]

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