Vivo Cannabis Inc (fka VVCIF)

[JohnCM]

VIVO Cannabis(TM) Announces Second Quarter 2021 Results

Aug. 16, 2021 7:10 PM ETFacebook, Inc. (FB), VVCIF
Newsfile Corp

Net revenue of $6.4 million - an increase of 16% over Q1 2021

Significant changes to the Board composition to lead to streamlined business strategy

Toronto, Ontario--(Newsfile Corp. - August 16, 2021) - VIVO Cannabis Inc. (VVCIF) (TSX: VIVO) (OTCQX: VVCIF) ("VIVO" or the "Company") today released its second quarter 2021 financial and operating results.

Management Commentary

"At the start of the third quarter of 2021, significant changes were made to the Board which subsequently has approved management's redefinition of the Company's strategy to fully leverage the efforts and investments that VIVO has made in the medical channels. In so doing, we expect that shareholders and clients alike will be pleased as our business becomes more focused on service and profitability. We will release another statement soon to outline these changes in more detail," said Ray Laflamme, Chief Executive Officer of VIVO Cannabis. "We have been rewarded in this past quarter with increased Australian sales, successful topical cream and brick hash product launches, and our first import permit from the German authorities. I expect that the third quarter will continue to reward those shareholders that have stayed the course."

Financial Summary

Net revenue for Q2 2021 was $6.4 million, representing a 16% increase quarter-over-quarter as compared to Q1 2021.

Sales, general and administrative expenses were $4.3 million in Q2 2021, compared to $4.1 million in Q1 2021, an increase of 5% driven by legal expenses related to conducting the AGM.

The Company's adjusted EBITDA(1) was ($3.0) million for the quarter, compared to ($2.4) million in Q1 2021, the difference primarily driven by inventory write-downs taken in the quarter.

Cash and cash equivalents decreased from $16.9M in Q1 2021 to $15.7M in Q2 2021, driven by the Company's operating losses.