Canna Farms captures 68% of extracts market
share with Ontario
retailers
Initial shipment of Fireside X shatter sold
out in BC in first week of sales
NAPANEE, ON, June 29, 2020 /CNW/ - VIVO Cannabis
Inc. (TSX: VIVO) (OTCQX: VVCIF) ("VIVO" or the
"Company"), a leading provider of premium cannabis
products and services and holder of licenses under
the Cannabis Act through its
wholly-owned subsidiaries, Canna Farms Limited ("Canna
Farms"), ABcann Medicinals Inc.
("ABcann") and Harvest Medicine Inc. ("Harvest
Medicine"), is pleased to provide an update on its
adult-use cannabis products.
Cannabis Concentrates
VIVO recently made initial shipments of its Fireside X shatter
product to several provincial wholesalers. Fireside X shatter
represents the second significant concentrates product format
launched by VIVO and is expected to make a significant contribution
to the Company's revenue. VIVO is the first licensed producer to
sell shatter in the Canadian adult-use market. This launch is
aligned with the commissioning of VIVO's ethanol extraction suite
at its Napanee, Ontario facility
(NCC). VIVO expects to use high-quality cannabis grown in its
Kimmetts airhouses as low production cost input for concentrate
products.
"I am pleased to announce that our early shatter sales have
exceeded our expectations. We have shipped to the Alberta and Ontario markets, as well as to British Columbia where the provincial
wholesaler sold its entire inventory within the first week," said
Gary McMullen, President of NCC.
"Being first-to-market has been a strong focus for us." It is
expected that NCC will be adding several other provinces and
formats to its concentrate distribution portfolio in the coming
months.
Cannabis Solvent-less Extracts
Solvent-less extracts are extracts produced by processes that do
not involve the use of solvents. VIVO currently produces
solvent-less extracts at its Hope,
British Columbia facility (CFL) marketed under the Canna
Farms™ brand. These include hash, bubble hash, rosin, kief and live
rosin. The most recent publicly available information
provided in the Ontario Cannabis Stores Annual Report for the year
ending March 31, 2020 indicates Canna
Farms™ had a market-leading 68% share of the concentrates at the
Ontario retail stores. "We
are pleased that our focus on the concentrate market is currently
yielding strong results. Demand for these products in the illicit
market is high compared to other categories and we have been able
to take advantage of that opportunity early," said Brian McDonald, Vice President of Canna
Farms™.
It is the Company's belief that no other licensed producers
currently produce solvent-less extracts. These products have been
launched in several provinces and VIVO now sells adult-use products
in eight provinces, with expansion to additional provinces expected
in the second half of 2020.
Product Development
VIVO continues to move forward on its recently announced
territory rights deal with Vertosa, developer of a patent-pending
infusion technology currently used in hemp and cannabis products
across the US and the EU. Their customized water-compatible
solutions are reported to accelerate onset time, prolong
shelf-life, increase bioavailability, and improve the taste profile
of cannabis-infused products. Working within current COVID-19
restrictions, arrangements are being made for Vertosa's equipment
to be shipped to NCC and for the Vertosa team to travel to NCC to
oversee on-site equipment installation and commissioning. Once
commissioned, VIVO believes it will be well-positioned to respond
to demand for active emulsion in the cannabis beverage market.
Michael Torrey, Vertosa's
Director of Brand Strategy, said "After a careful review of the
Canadian landscape, we at Vertosa are thrilled to have established
this partnership with VIVO, a seasoned licensed producer well-known
for premium cannabis products and services. Together, I believe we
will help drive the Cannabis 2.0 movement in Canada by providing the necessary technology
for trusted, high-quality, and reliable infused
products."
About Vertosa
Vertosa creates industry-leading active ingredients for infused
product makers. Their patent pending nano- and micro-emulsions are
carefully designed for the specific needs of each customer, with
pre-suspended aqueous solutions that create homogeneous and stable
products while maximizing bioavailability, clarity, and taste.
Vertosa works closely with their lab partners and clients of all
sizes throughout the manufacturing process to achieve target
potency and accelerate products to market. Learn more about Vertosa
at vertosa.com.
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™,
Fireside X™, 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: www.vivocannabis.com
Disclaimer
Information in this news release with respect to Vertosa's
products and the properties and benefits thereof have been provided
by Vertosa and have not been independently verified by VIVO.
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:
that Fireside X shatter is expected to make a significant
contribution to the Company's revenue; that VIVO expects to use
cannabis grown at its airhouses as low production input for
concentrate products; that it is expected that NCC will add several
other provinces and formats to its concentrate distribution
portfolio in coming months; that VIVO is expected to expand
adult-use product sales to additional provinces in the second half
of 2020; and that the relationship with Vertosa will well-position
VIVO to respond to demand for active emulsion in the cannabis
beverage market and help drive the Cannabis 2.0 movement in
Canada. Such 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 the
Company may not be able to increase the sales of its products in
the current domestic market or successfully develop and launch new
product lines in the time expected or at all; that the COVID-19
pandemic may last longer and have a more significant impact on the
Company's operations, the Canadian cannabis industry, or the global
economy generally, than currently expected; that the Company may
not be able to achieve competitive margins; that new products, if
launched, may not be accepted by the market or may become subject
to product liability claims; that the Company may not be able to
obtain necessary licences; that demand for the Company's products
may not meet management's expectations; that the timing of delivery
and/or commissioning of the Vertosa equipment may be delayed, due
to travel restrictions related to the COVID-19 pandemic or
otherwise; that the Company may be unable to retain its key talent;
that the Company may not be able to execute on its strategic
partnerships; that the Company may not obtain any other necessary
regulatory approvals as required from time to time; that the
Company may be unable to protect its intellectual property; 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 management's discussion and analysis for the three months
ended March 31, 2020, 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.