VIVO Cannabis™ initiates additional facility expansion in B.C.
HOPE, BC, April 25, 2019 /CNW/ – VIVO Cannabis Inc. (TSX-V: VIVO, OTCQB: VVCIF) (“VIVO” or the “Company”) today announced its wholly-owned subsidiary, Canna Farms Limited (“Canna Farms”), has received local municipal approval for its Phase 5 expansion which will add an incremental 2,500 kilograms of indoor capacity to its facility in Hope, B.C.
Canna Farms’ Phase 5 expansion, originally slated to begin construction in 2020, is now expected to be completed in late 2019 or early 2020, pending regulatory approval. The expansion consists of 10,000 square feet of cultivation space, with expected capital costs of $3.5 million and is expected to bring VIVO’s total internal production capacity to 13,500 kilograms by early 2020.
Canna Farms is a cultivator and purveyor of premium quality, award winning, small-batch craft cannabis with widespread recognition and appeal as evidenced by its award for ‘Top Reviewed Licensed Producer of the Year’ at the 2018 Canadian Cannabis Awards.
Barry Fishman, Chief Executive Officer of VIVO
This expansion will further increase Canna Farms’ production capacity to help meet the significant market demand for premium B.C. dry bud. This project represents a strategic deployment of a minor portion of our strong cash position as the Company continues to invest to drive future growth.
“This capital project was not expected to start so quickly as it required development permit approval from the District of Hope,” said Raymond Laflamme, Senior Vice President, Facilities and Engineering at VIVO. “In short order we will have completed the design and engineering work needed for our building permit application. As in our previous facility expansions, we will continue to utilize off-the-shelf components that are efficient, easy to assemble, and locally sourced. Using this approach allows Canna Farms to minimize construction time and achieve a quick return on capital for our shareholders.”
Mr. Fishman added, “VIVO is committed to producing premium quality products with strong and sustainable gross margins. VIVO’s cultivation strategy includes premium indoor cultivation of dry flower as well as the more cost-effective seasonal greenhouse and outdoor cultivation of cannabis for extraction.”
About VIVO Cannabis™
VIVO, based in Napanee, Ontario, is recognized for trusted, high-quality products and services. It holds production and sales licences from Health Canada and operates world-class indoor cultivation facilities with proprietary plant-growing technology. VIVO has a collection of premium brands targeting unique customer segments, including Beacon Medical™, FIRESIDE™, Canna Farms™ and Lumina™. In August 2018, VIVO acquired Canna Farms, a premium cannabis company based in Hope, British Columbia. Canna Farms was B.C.’s first Licensed Producer and has several years of craft cultivation experience and expertise, as well as a significant patient base and positive cash flow. The Company 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. VIVO also operates Harvest Medicine, a patient-centric and highly scalable network of specialty medical cannabis clinics as well as a free telemedicine service. VIVO has a healthy balance sheet and is well-positioned to accelerate its growth in Canada and internationally.