/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN
CANADA ONLY AND IS NOT INTENDED
FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE/
TORONTO, Sept. 16, 2020 /CNW/ - VIVO Cannabis
Inc. (TSX: VIVO) ("VIVO" or the "Company")
announces that the holders of its 6% unsecured convertible
debentures dated February 28, 2018
(each, a "Debenture" and collectively, the
"Debentures"), due on February 28,
2021, have approved certain amendments to the Debentures by
way of extraordinary resolution of the holders.
"We are pleased to have reached an agreement that reduces our
total debt obligations by over 75%, and materially decreases our
interest expense," commented Barry
Fishman, CEO of VIVO. "This transaction also offers
remaining debenture holders an improved conversion rate, aligned
with current market conditions, and provides additional
flexibility for VIVO to execute our growth plans and
accelerate the path to near-term profitability."
As a result of these amendments, the Company will have
$6.6 million in outstanding 6%
convertible debentures, due September 15,
2022, compared to $27.1
million prior to the amendments. The amendments are expected
to become effective on or about September
17, 2020.
The amendments to the Debentures provide for, among other
things, (i) the prepayment of 44.32% of the outstanding principal
amount of the Debentures, being $10,468,384, on a pro rata basis, at a price of
$1,000 per Debenture, together with
accrued and unpaid interest thereon up to but excluding the
repayment date, and (ii) the conversion of 27.84% of the
outstanding principal amount of the Debentures, being $6,575,808, on a pro rata basis, in consideration
for the issuance of units of the Company (each, a "Unit") at
a price of $0.2004 per Unit, leaving
a principal amount of $6,575,808
outstanding. Each Unit to be issued will be comprised of one common
share in the capital of the Company (each, a "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 .
Subject to the issuance of the Units to the holders of the
Debentures, the amendments to the Debentures will extend the
maturity date of the Debentures from February 28, 2021 to September 15, 2022, and reduce the conversion
price of the Debentures from $4.00
per Share to $0.2672 per Share.
Concurrent with the prepayment of the Debentures, the Company
intends to repay the $3,500,000
principal amount outstanding on its 7% unsecured convertible
debentures due December 21, 2020.
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 proposed amendment to the
Debentures. 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.