VIVO Cannabis Generates $4.4 Million Revenue Pro Forma in Q3

VIVO Cannabis Generates $4.4 Million Revenue Pro Forma in Q3
VIVO Cannabis Generates $4.4 Million Revenue Pro Forma in Q3

  • Revenue of $2.3 million
  • Pro-Forma Revenue of $4.4 million
VIVO Cannabis Inc. (TSX-V: VIVO, OTCQX: VVCIF), a licensed producer of cannabis under the Cannabis Act through its wholly-owned subsidiaries, ABcann Medicinals Inc.  and Canna Farms Limited, is pleased to announce the release of its financial results for the three and nine months ended September 30, 2018. The results represent the Company’s strongest financial performance to date.

“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.

Financial Results

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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