VIVO Cannabis Inc. VVCIF

RE:Q4 out !! "We continue to be laser focused on growth profit"

[1hot-techwoman]

1hot-techwoman wrote:

VIVO Cannabis Announces Fourth Quarter 2021 Results

Thursday, March 31, 2022, 7:57 AM ET

 

 -- Net revenue for Q4 2021 was $6.9 million; Net revenue for 2021 was $25 million. -- In February 2021, closed a $7.2 million equity raise to help fund VIVO's growth -- In July 2021, the Company elected a new Board of Directors, announced the appointment of Ray Laflamme as CEO and Chairman of the Board and later welcomed the Former President of McCain Foods Canada and CEO of Zenabis Global, and Former CFO of Cronos Group, to the Board of Directors. -- In July 2021, announced that its EU-GMP licensed subsidiary, Beacon Medical Germany GmbH, received its first import permit from Germany's BfArM, the Federal Institute for Drugs and Medical Devices (Bundesinstitut fr Arzneimittel und Medizinprodukte), allowing for the import of Canadian grown dried flower medical cannabis from the Company's EU-GMP-certified Napanee, Ontario site, into Europe. -- In December 2021, recorded first significant revenues of Canadian produced EU-GMP product by VIVO's German business -- In mid 2021 the Company refined its strategy and is now focused primarily on medical cannabis -- The Company continues to have market leadership in Australia and leveraged its Canadian knowledge base to accelerate product efficacy, cannabis medical information sharing, and sales growth -- With the Company's EU-GMP certification, it is now in a position to repeat its Australian success in Germany and in other global markets, all of which are exclusively medically focused -- Over 350% year-over-year sales growth in Australia 

Toronto, Ontario--(Newsfile Corp. - March 31, 2022) - VIVO Cannabis Inc. (TSX: VIVO) (OTCQX: VVCIF) ("VIVO" or the "Company") today released its fourth quarter 2021 financial and operating results.

Management Commentary

"We continue to be laser focused on growth, profitability, and the medical cannabis channels in Canada and Internationally," said Ray Laflamme, CEO of VIVO. "The Board recently approved our 2022 Business Plan in which we are targeting significant international growth along with continued success in domestic markets. We look forward to striving to achieve industry leading metrics as we track our progress towards meeting our objectives. We are confident that VIVO will continue to strengthen its core businesses in 2022."

Business Update

General and administrative expenses decreased by 24% for the year ended December 31, 2021, compared to 2020. Sales and marketing expenses decreased by 15% in 2021, reflecting the reallocation of external sales agency costs internally and focusing on medical cannabis growth. Finance expenses decreased during the year ended December 31, 2021, by 75% compared to the same period in 2020 driven by the Company eliminating its $5.3 million of convertible debentures, resulting in a decrease in accretion and interest expenses on the debt.

The Company had gains (losses) on other financial assets, comprised of marketable securities of other issuers held by the Company. In 2021 the Company realized gains of $1.0 million on these assets and proceeds from the sale of these financial assets of $8.2 million. During the year, the Company raised $7.2 million of equity (net of listing fees). In 2021, the Company also generated proceeds of $1.0 million from the sale of property. As of December 31, 2021, the Company had working capital of $18.3 million including cash and cash equivalents of $11.3 million.

In July 2021, at the Annual General Meeting, the shareholders elected Holly Workman and Eric Shipman as new Directors to the Board, announced the appointment of Ray Laflamme, founder of Canna Farms, as CEO and Chairman of the Board and in December 2021, appointed Glen A. Huber, former CFO of Cronos Group and Shai Altman, former President of McCain Foods and former CEO of Zenabis Global, to the Board of Directors.

Strategic Priorities

VIVO remains focused on executing against its strategic priorities and focusing on the medical cannabis market in Canada and internationally. The Company has made significant progress in enhancing supply and production capabilities, expanding its customer network, increasing its focus on providing patient focused medical cannabis products and services, and accelerating its international medical business. VIVO believes focusing on its core priorities will generate long-term shareholder value and accelerate the path to profitability.

Patient Care Expertise

The Company has provided educational consultants and medical cannabis care in over 150,000 patient interactions through its HMED clinics (as defined below) since 2017. Canna Farms' best-in-class, award-winning, Patient Care Team has been providing patient services since 2014 and has firsthand expertise in product ordering, and patient support. With patient-centricity at its core, in 2021 the Company widened its product offerings and enhanced its best-in-class support programs including Compassionate Care, Veterans, and First Responders, so that all patients have access to affordable quality cannabis as medicine.

Quality Production

Canna Farms and ABcann Medicinals together have more than fifteen years of experience supporting cannabis medical patients with a wide range of conditions and symptoms and together have amassed a deep understanding of patient motivations and needs.

Canna Farms was established in 2013, as the first licensed producer in British Columbia, and since that time has established deep roots in the medical cannabis community. It is now a respected and recognized cannabis brand with thousands of positive patient self-reported outcomes. Today Canna Farms is one of the top medical brands in Canada. Canna Farms was BC's first licensed producer and proudly holds itself to the highest cultivation standards. In 2020, it was recognized by Brightfield Group as the brand with the 4th highest Brand Awareness.

Canna Farm has many thousands of patients who have tracked themselves and self-reported their outcomes using the Strainprint app in over 650,000 sessions. Due to this, Canna Farm has the largest data set within the mobile app and the efficacy of specific strains used for various conditions have been published in several independent academic peer-reviewed articles. Canna Farms operates an industry-leading online medical cannabis platform, (https://www.cannafarms.ca/product-medical) that combines the Company's brands with products from third-party cultivators in one on-line medical store. There are currently over 10 brands and 100 curated products offered on the Canna Farms medical store.

Canna Farms operations focus on indoor cannabis cultivation, packaging, solventless extraction and concentrate production.

ABcann Medicinals' operations in Napanee Ontario focus on ethanol extraction, product formulation, and EU-GMP related processes. This operation's ethanol extraction suite produces high quality cannabis extracts and distillates for use in many of VIVO's products including quality oils, distillates, concentrates and more advanced formulations of VIVO's current and anticipated portfolio of medical products, as well as edibles and topicals.

With all operating facility expansion projects completed, VIVO anticipates capital expenditures for 2022 to be minimal. Disciplined investments in product development, facility optimization and international market commercialization are expected to continue to facilitate future profitable growth.

International Markets

VIVO continues to pursue its international expansion strategy, leveraging its experience and leadership to enter new high-growth markets. The Company's initial focus is on the German and Australian markets, which, combined, have a population of over 100 million people.