- Shares of VIVO Cannabis (VIVO) were some of the best performing on the Toronto Stock Exchange on Friday
- VIVO stock was up 25 per cent and is now ranked among the top 10 undervalued stocks in the Drug Manufacturers industry on the Toronto Stock Exchange
- Investors have been tracking recent news on the company’s proposed merger with MediPharm Labs Corp. (LABS)
- MediPharm has agreed to acquire VIVO in an all-equity business combination transaction, expected to combine two complementary businesses and create a unique international medical cannabis operation.
- VIVO Cannabis Inc. (VIVO) opened trading at C$0.025
Shares of VIVO Cannabis (VIVO) were some of the best performing on the Toronto Stock Exchange on Friday.
VIVO stock was up 25 per cent and is ranked among the top 10 undervalued stocks in the Drug Manufacturers industry on the TSX.
Though it has been rallying as of late, this stock actually appears to be working on a rebound. It has fallen some 64 per cent since this time last year.
Investors have been tracking recent news on the company’s proposed merger with MediPharm Labs Corp. (TSX:LABS)
MediPharm has agreed to acquire VIVO in an all-equity business combination transaction, expected to combine two complementary businesses and create a unique international medical cannabis operation.
Upon the completion of the acquisition, existing MediPharm shareholders are expected to own between 65 per cent, and 79 per cent of the combined company and VIVO shareholders are expected to own between 35 per cent and 21 per cent of the combined company.
The VIVO acquisition is expected to add established Australian and German medical cannabis brand Beacon Medical, medical cannabis clinic business Harvest Medicine, and longstanding Canadian medical sales platform Canna Farms Medical.
VIVO’s medical sales channel, Canna Farms Medical, will include existing MediPharm products direct to patients, which generally result in a better gross margin with the ability to bypass provincial distributors. It is currently expected that the effective date of the arrangement will occur on or about the completion of Q1 2023.
The combined company’s international distribution will cover European and Asia-Pacific markets through established, revenue-generating agreements. Investors can learn more at the company’s next webcast on March 21, 2023, at 11:00 a.m. ET.
Through its Canna Farms and ABcann business units, VIVO Cannabis holds production and sales licences from Health Canada and operates world-class indoor cultivation facilities. VIVO has a collection of premium brands, including Canna Farms, Beacon Medical, Fireside, and Lumina.
VIVO Cannabis Inc. (VIVO) opened trading at C$0.025.