VIVO Announces Strategic Investment in Friendly Stranger

Published: June 21, 2019

VIVO Announces Strategic Investment in Friendly Stranger

VIVO Cannabis Inc. has made a $1.25 million strategic investment in Friendly Stranger Holdings Corp. (“Friendly Stranger”), a longstanding retail champion of cannabis culture. The investment is intended to facilitate Friendly Stranger’s aggressive cannabis retail expansion plans, with a goal of bringing multiple retail stores to the Canadian market.

“VIVO is focused on expanding capacity and increasing production capability to help meet the growing demand for cannabis among recreational users,” said Barry Fishman, Chief Executive Officer of VIVO. “Friendly Stranger has been an iconic brand in the Canadian cannabis sector for more than 25 years and we believe trusted retailers are integral to showcasing our premium family of brands, including Canna Farms, Fireside, and Lumina. We have actively sought strategic partnerships with retailers to establish strong relationships with existing and future leaders in the cannabis industry. We look forward to working with Friendly Stranger to advance their premium adult-use cannabis retail strategy in Ontario and throughout Canada.”

“We look forward to welcoming VIVO to the Friendly Stranger family,” said James Jesty, President, Friendly Stranger Holdings Corp. “With a strategic investment from VIVO, we have additional capital to execute the first phase of our growth strategy to scale and evolve the business. This will include operating several locations fully licenced to sell adult-use cannabis, pending Ontario granting additional licences. VIVO is an ideal partner for us and their line of premium cannabis products aligns well with our brand.”

VIVO has agreed to acquire, through a wholly-owned subsidiary: (i) 187,500 Class A common shares in the capital of Friendly Stranger at a price of $4.00 per share for an aggregate purchase price of $750,000, and (ii) an unsecured convertible debenture of Friendly Stranger in the principal amount of $500,000, for a total investment of $1,250,000. The debenture will bear interest at the rate of 6.0% per annum, have a maturity date of June 19, 2021, and be convertible, at the option of VIVO, into Class A common shares of Friendly Stranger at a conversion price of $5.00 per share, subject to adjustment and certain limitations as provided in the debenture certificate.

VIVO and Friendly Stranger have also entered into a preferred partnership agreement pursuant to which, among other things, the parties have agreed to collaborate on obtaining Friendly Stranger’s cannabis retail licence, conducting in-store events, and leveraging co-branding opportunities.

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