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VIVO Cannabis Inc. V.PDA


Primary Symbol: VVCIF

VIVO Cannabis Inc is a Canada-based company. It is involved in the production and sale of medical and recreational cannabis and the provision of cannabis-related medical information and services in Canada. The company's operating segment includes Cannabis, Patient Clinics, and Corporate. It generates maximum revenue from the Cannabis segment. The company has a presence across three geographical locations - Canada, Germany, and Australia.


OTCQB:VVCIF - Post by User

Comment by LongTermWinneron Aug 15, 2020 3:40pm
316 Views
Post# 31413143

RE:Insider Selling

RE:Insider SellingLaFlamme's sales have been discussed at exhaustive length for a long while, so if you don't mind I'll just copy/paste another post to answer your question:

When CannaFarms was purchased by Vivo, LaFlamme received a large amount of shares as part of the transaction. He wanted to liquidate roughly 5% of his shares for cash. Per an agreement with the board, and with the intention of protecting retail investors from a large one time sale, they decided to do one year of pre-authorized transactions in the amount of 20,000 shares per day. He had no control over which days they would sell, and no ability to pause or alter the transactions other than putting a stop to it entirely.

Towards the end of June this year, it was announced that he would be stopping the transactions early (believe they were originally scheduled until September). Instead, he did two final large transactions at once. Impressively, this did not lower the stock price below its support.

There's a couple varying ideas on why he stopped pre-maturely with the final larger transaction. If you asked me, I think they realized that the consistent insider sales were having the inverse reaction that they had hoped - it was keeping retail investors away (because who wants to invest in a small cap where an insider is dumping if you don't know the whole story). So they agreed to finish it up at once so their turnaround story could take form. This happened right as loads of good news were pouring out of their PR team - MediPharm deal, Fireside Shatter market share, Medical Cannabis by Shoppers, Veterans House, Phase 5 expansion, EU-GMP final stages of approval, etc etc. By the time earnings hit, the final insider sales will be 7 weeks in the past, and every day past them leaves more room for potential investor confidence.

So while it's never great to see insiders selling, when you consider the circumstance - that he was selling less than 5% of his total shares after having his own company acquired - and the fact those sales are now a thing of the past, it has become a non-issue. Or quite the opposite - it's become a great opportunity. Those sales are what brought the price down for 6 months, and what kept investors like you away from a great high growth company, so for those informed on this situation they can capitalize on others' lack of due diligence.
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