- Revenue of $2.3 million
- Pro-Forma Revenue of $4.4 million
“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.
Q3 2018 Highlights
- Q3 revenue of $2.3 million
- Completion of the acquisition of Canna Farms on August 31, 2018, resulting in pro forma Q3 revenue of $4.4 million (the revenue that VIVO would have reported had Canna Farms been owned for the entire quarter)
- At the end of Q3 2018, total medical cannabis patients of 18,000 compared to 2,000 at the end of Q2 2018 (representing a 9-fold increase)
- Entry into adult-use supply agreements with British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and the Yukon, and Canna Farms achieving one of the best order fulfillment rates in the industry
- Beacon Medical™ product was introduced into the Australian market
- The upgrading of the Company’s common shares to the OTCQX® Best Market in the United States
- Completion of corporate re-branding, including name change to VIVO Cannabis and the launch of the Beacon Medical™ cannabis brand
- Introduction of the Lumina™ and Fireside™ adult-use cannabis brands
- Expansion of senior level management team and appointment of Daniel Laflamme to the Company’s board of directors.
Highlights Subsequent to Q3 2018
- The launch of Harvest Medicine’s HMED Connect telemedicine app, which allows patients across Canada to access Harvest Medicine’s class-leading education and patient-centric model at any time, and is expected to create significant partnership opportunities with pharmacies, long-term care facilities and insurance companies
- Acquisition of Trauma Healing Centres (“THC”), a leading east coast chain of medical cannabis clinics, resulting in Harvest Medicine and THC currently operating six clinic locations across four provinces representing a total of 22,000 active patients
- Strategic equity investments in Canadian cannabis retailers, National Access Cannabis Corp. and Westleaf Cannabis Inc.
- VIVO’s capacity to supply both the medical and adult-use markets will be enhanced in the first half of 2019 with internal expansion in BC and Ontario and through certified third-party partner supply agreements.
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.
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