HOPE, BC, April 25, 2019 /CNW/ - VIVO Cannabis Inc.
(TSX-V: VIVO, OTCQB: VVCIF) ("VIVO" or the
"Company") today announced its wholly-owned subsidiary,
Canna Farms Limited ("Canna Farms"), has received local
municipal approval for its Phase 5 expansion which will add an
incremental 2,500 kilograms of indoor capacity to its facility in
Hope, B.C.
Canna Farms' Phase 5 expansion, originally slated to begin
construction in 2020, is now expected to be completed in late 2019
or early 2020, pending regulatory approval. The expansion consists
of 10,000 square feet of cultivation space, with expected capital
costs of $3.5 million and is expected
to bring VIVO's total internal production capacity to 13,500
kilograms by early 2020.
"Canna Farms is a cultivator and purveyor of premium quality,
award winning, small-batch craft cannabis with widespread
recognition and appeal as evidenced by its award for 'Top Reviewed
Licensed Producer of the Year' at the 2018 Canadian Cannabis
Awards," said Barry Fishman, Chief
Executive Officer of VIVO. "This expansion will further
increase Canna Farms' production capacity to help meet the
significant market demand for premium B.C. dry bud. This project
represents a strategic deployment of a minor portion of our strong
cash position as the Company continues to invest to drive future
growth."
"This capital project was not expected to start so quickly as it
required development permit approval from the District of
Hope," said Raymond Laflamme, Senior Vice President,
Facilities and Engineering at VIVO. "In short order we will have
completed the design and engineering work needed for our building
permit application. As in our previous facility expansions, we will
continue to utilize off-the-shelf components that are efficient,
easy to assemble, and locally sourced. Using this approach allows
Canna Farms to minimize construction time and achieve a quick
return on capital for our shareholders."
Mr. Fishman added, "VIVO is committed to producing premium
quality products with strong and sustainable gross margins. VIVO's
cultivation strategy includes premium indoor cultivation of dry
flower as well as the more cost-effective seasonal greenhouse and
outdoor cultivation of cannabis for extraction."
About VIVO Cannabis™
VIVO, based in Napanee,
Ontario, is recognized for trusted, high-quality products
and services. It holds production and sales licences from Health
Canada and operates world-class indoor cultivation facilities with
proprietary plant-growing technology. VIVO has a collection of
premium brands targeting unique customer segments, including Beacon
Medical™, FIRESIDE™, Canna Farms™ and Lumina™. In August 2018, VIVO acquired Canna Farms, a premium
cannabis company based in Hope, British
Columbia. Canna Farms was B.C.'s first Licensed Producer and
has several years of craft cultivation experience and expertise, as
well as a significant patient base and positive cash flow. The
Company is significantly expanding its production capacity and
pursuing partnership and product development opportunities
domestically, as well as in select international markets, including
Germany and Australia. VIVO also operates Harvest
Medicine, a patient-centric and highly scalable network of
specialty medical cannabis clinics as well as a free telemedicine
service. VIVO has a healthy balance sheet and is well-positioned to
accelerate its growth in Canada
and internationally.
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 Statements
This news release contains forward-looking statements, which
are statements that are not purely historical, regarding the
beliefs, plans, expectations or intentions of the Company and its
management regarding the future, and should not be read as
guarantees of future performance or results. Forward looking
statements in this news release include statements regarding: the
Company's expected increase in production capacity from the Canna
Farms expansion; the Company's expected 2020 production capacity;
and the expected timing of completion and capital costs of the
expansion. Such statements are based on certain assumptions of
management, including that all necessary regulatory approvals for
the expansion will be received in a timely manner and that there
will be no occurrences that decrease expected production or
increase expected capital costs, and 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 potential delays in
regulatory approval, completion of construction and producing
saleable finished products; failure to obtain necessary regulatory
approvals; changes in applicable laws; and other factors beyond the
Company's control. A more complete discussion of the risks and
uncertainties facing the Company appears in the Company's Annual
Information Form for the year ended December
31, 2017 and 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
speak only as of the date of this news release. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements as a result of new information or future
events, or for any other reason, other than as required by
applicable securities laws.
SOURCE VIVO Cannabis Inc.