VIVO Cannabis Announces Fully Marketed $5 Million Public Offering

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, Oct. 06, 2020 (GLOBE NEWSWIRE) -- VIVO Cannabis Inc. (TSX:VIVO) (“VIVO” or the “Company”) is pleased to announce that it has commenced a best efforts fully marketed offering of units of the Company (each, a “Unit” and, collectively, the “Units”) at an issue price per Unit of $0.15, for gross proceeds to the Company of approximately $5,100,000 (the “Offering”). Clarus Securities Inc. and Gravitas Securities Inc. have been engaged by the Company to act as co-lead agents (together, the “Agents”) in respect of the Offering. Each Unit will consist of one common share of the Company (each, a “Common Share”) and one half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”) to purchase one common share of the Company at an exercise price of $0.26 for a period of 36 months following the Closing Date (as defined below). The Units will be offered for sale in each of the provinces of Canada, except the Province of Quebec, pursuant to a prospectus supplement to the Company’s base shelf prospectus dated October 5, 2020 (the “Shelf Prospectus”).

VIVO intends to use the net proceeds of the Offering for general working capital and corporate purposes.

The Company has granted to the Agents an option, exercisable in whole or in part, to arrange for the sale of additional Units representing additional gross proceeds of $1,275,000, on the same terms and conditions as the Offering (the “Agent’s Option”). The Agents’ Option shall be exercisable at any time up to 48 hours prior to the Closing Date. There can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering. The Offering is expected to close on or about October 15, 2020 (the “Closing Date”) and will be subject to customary closing conditions, including listing of the Common Shares on the Toronto Stock Exchange.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The Units have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws. Accordingly, the Units may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.