NAPANEE, ON, April 3, 2020 /CNW/ - VIVO Cannabis Inc. (TSX: VIVO, OTCQX: VVCIF) ("VIVO" or the "Company") announces that it has re-purchased for cancellation certain of its outstanding 6.0% unsecured convertible debentures (each, a "Debenture"), in the aggregate principal amount of $10 million, for a purchase price of $9.3 million (plus accrued and unpaid interest thereon), representing a 7% discount to the face value, pursuant to an agreement with the holder thereof (the "Holder"). As a result of the repurchase, the Company now has Debentures in the aggregate principal amount of $24.5 million due February 28, 2021.

The Company intends to amend the debenture indenture dated February 28, 2018 to provide the remaining holders of the Debentures (other than the Holder) with a pro rata right of repurchase, at the option of each remaining holder, on the same terms as the Holder, until April 30, 2020. In the event that all remaining holders exercise this right of repurchase, the Company would cancel a total of an additional $1,500,000 of Debentures for aggregate consideration of $1,395,000.

"As evidenced by our recent financial results, VIVO continues to enjoy a strong cash position," stated Barry Fishman, VIVO's Chief Executive Officer. "Repurchasing these debentures at a 7% discount, together with the termination of future interest that would otherwise have accrued to the maturity date of February 28, 2021, will result in savings to VIVO of between approximately $1.25 million and $1.43 million, which will further enable us to pursue our goals of increasing shareholder value and becoming profitable."

About VIVO Cannabis™

VIVO Cannabis™ is recognized for trusted, premium cannabis products and services. It holds production and sales licences from Health Canada and operates world-class indoor and seasonal airhouse cultivation facilities with proprietary plant-growing technology in Hope, British Columbia and Napanee, Ontario. VIVO has a collection of premium brands, each targeting different customer segments, including Canna Farms™, Beacon Medical™, Fireside™, Lumina™ and Canadian Bud Collection™. The Company is expanding its production capabilities and distribution network. Harvest Medicine, VIVO's patient-centric, scalable network of medical cannabis clinics, has serviced over 100,000 patient visits. VIVO is pursuing several partnership and product development opportunities and is focusing its international efforts on Germany and Australia. The Company has a healthy balance sheet and is well-positioned to accelerate its path to profitability. For more information visit: www.vivocannabis.com

ON BEHALF OF THE BOARD OF DIRECTORS

Barry Fishman
CEO and Director

Disclaimer for Forward-Looking Information

All dollar amounts in this news release are in Canadian dollars. Certain statements in this news release are forward-looking statements, which are statements that are not purely historical, including statements regarding the beliefs, plans, expectations or intentions of VIVO and its management regarding the future. Forward-looking statements in this news release include statements regarding the proposed amendment to the Debenture indenture. Forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements, including: that procedural delays may impact the expected timing of completion thereof, and other factors beyond the Company's control. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors, and the more extensive risk factors included in the Company's annual information form for the year ended December 31, 2019, which is available on SEDAR, carefully in evaluating the forward-looking statements contained in this news release, and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements in this news release are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

SOURCE VIVO Cannabis Inc.

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