VIVO Cannabis Inc (OTCMKTS: VVCIF) (VIVO) is on a fast rise after the recent reversal. This is a really exciting stock; VIVO is quickly establishing itself as a leading cannabis company in Canada with annual fully funded production capacity of 57,000 kilograms which is growing fast and multiple provincial supply agreements already secured.
VIVO is recognized for trusted, high-quality products and services. Through Canna Farms and ABcann Medicinals, it holds production and sales licences for cannabis and cannabis oils from Health Canada and operates world-class indoor cultivation facilities with proprietary plant-growing technology. VIVO has a collection of brands targeting unique customer segments, including Beacon Medical™, FIRESIDE™, Canna Farms™ and Lumina™. VIVO acquired Canna Farms, a premium cannabis company based in Hope, British Columbia, in August 2018. Canna Farms was BC’s first Licensed Producer and has several years of craft cultivation experience and expertise.
VIVO Cannabis 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. In the fourth quarter of 2018, VIVO also acquired THC, which was subsequently amalgamated with Harvest Medicine. Harvest Medicine and THC operate a patient-centric and highly scalable network of specialty medical cannabis clinics in Alberta and on the east coast of Canada, as well as HMED Connect, a free telemedicine service.
The Company’s wholly-owned subsidiary, ABcann Medicals, Inc. is a licensed producer of medical cannabis under the access to cannabis for medical purposes regulations (ACMPR) and its principal business activity is the manufacturing and distribution of medical cannabis under a license by Health Canada. VIVO’s registered office is located at 126 Vnluven Road, Napanee, Ontario K&R 3L2.
VIVO recently completed the acquisition of Canna Farms Limited located in Hope, British Columbia, a premium Licensed Producer of medical cannabis under the Access to Cannabis for Medical Purposes Regulations, and the first Licensed Producer in British Columbia.
The Transaction was accredited to VIVO. For the twelve months ended June 30, 2018, Canna Farms generated unaudited revenue and adjusted EBITDA of $9.4 million and $4.3 million, respectively. For the fiscal year ended September 30, 2017, Canna Farms generated audited revenue of $5.8 million and adjusted EBITDA of $2.8 million.
Canna Farms’ Dealers License, combined with VIVO’s international partnerships and expertise, are expected to expedite the Company’s expansion strategy in international markets, with a focus on Germany and Australia. VIVO also now has increased capacity and scale: Annual fully funded production capacity of 57,000 kilograms, with multiple provincial supply agreements already secured.
On November 30 VIVO Cannabis Inc reported financial results for the three and nine months ended September 30, 2018. The results represent the Company’s strongest financial performance to date.
VIVO reported revenues of $2.3 million and a net loss of $9.1 million for the third quarter of 2018, as the Company continues to invest to drive future growth. Non-recurring advertising and promotion expenses incurred in preparation for the launch of the adult-use market on October 17, 2018 and expenses related to the Canna Farms acquisition were a material factor in the increase in net loss. As at September 30, 2018, the Company had $100 million in cash, cash equivalents and short-term investments, total assets of $285 million, total liabilities of $61 million, and 291 million common shares outstanding.
Barry Fishman, CEO of VIVO stated “The acquisition of Canna Farms represents a transformational transaction in the evolution of VIVO that has led to a record quarter of $2.3 million revenue, with $4.4 million of pro forma revenue for the full quarter. Not only has this acquisition provided a significant revenue impact, it has tripled our production capacity, expanded our product range and substantially increased our medical patient base,” stated Barry Fishman, CEO of VIVO.
Currently trading at a $146 million market valuation VIVO has $129 million (CAD) in the treasury, manageable debt and significant sales when we calculate in the $9 plus million a year Canna Farms brings to the table. VIVO is quickly establishing itself as a leading cannabis company in Canada with annual fully funded production capacity of 57,000 kilograms which is growing fast and multiple provincial supply agreements already secured. There is currently huge demand for VIVO stock and the next few weeks should be very exciting as we get closer to legal recreational cannabis on October 17. We will be updating on VIVO when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with VIVO.
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Disclosure: we hold no position in VIVO either long or short and we have not been compensated for this article.