VIVO Cannabis Announces Agreement to Amend Outstanding Debentures
Toronto, Ontario--(Newsfile Corp. - September 19, 2022) - VIVO Cannabis Inc. (TSX: VIVO) (OTCQX: VVCIF) ("VIVO" or the "Company") has entered into an agreement dated September 15, 2022 with the majority beneficial owner of its outstanding unsecured convertible debentures dated February 28, 2018 in the aggregate principal amount of $5,546,808 (collectively, the "Debentures") to amend the terms of the Debentures (the "Amendments").
"We are pleased to have reached an agreement which mitigates our financial risk profile while allowing us to fulfill our obligations" said Ray Laflamme, CEO of VIVO. "This transaction provides flexibility for VIVO in the current market conditions to concentrate on our core objectives."
The proposed Amendments provide for, among other things, (i) the extension of the maturity date from September 15, 2022 to September 15, 2024, (ii) an increase of the interest payable on the Debentures from 6.0% to 10.0%, and (iii) the prepayment of Debentures in the aggregate principal amount of $3 million, on a pro rata basis, in $500,000 installments, with the first such payment to be made within three business days after the execution of the Supplemental Indenture (as defined below) and the balance to be made every 30 days after the date of the Supplemental Indenture (with the last such payment expected to occur in February 2023).
The implementation of the Amendments is subject to receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange, and the Company entering into a third supplemental debenture indenture reflecting the Amendments (the "Supplemental Indenture") with TSX Trust Company, the trustee under the debenture indenture, which the Company expects will be entered into prior to month end.
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 cultivation facilities. VIVO has a collection of premium brands, each targeting different customer segments, including Canna Farms™, Beacon Medical®, Fireside™, and Lumina™. Harvest Medicine™, VIVO's patient-centric network of medical cannabis clinics, has serviced over 200,000 patient visits. VIVO is pursuing focuses its international efforts on Germany and Australia. For more information visit: www.vivocannabis.com
For further information:
VIVO Investor Relations
Michael Bumby, Chief Financial Officer
Disclaimer for Forward-Looking Information
All dollar amounts in this news release are in Canadian dollars. 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 regarding the expected timing of effectiveness of the Amendments, the expected benefits to the Company of the Amendments, and the proposed timing of the prepayments of certain of the Debentures as described above. 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 obtain the required regulatory and third party approvals necessary to implement the Amendments in the time expected or at all. 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. 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.
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