VIVO Cannabis™ Announces Fourth Quarter 2020 Results

Published: April 7, 2021

VIVO Cannabis™ Announces Fourth Quarter 2020 Results

VIVO Cannabis Inc. released its fourth quarter 2020 financial and operating results.

Financial Highlights:

  • Net revenue for Q4 2020 was $6.2 million; Net revenue for 2020 was $32.8 million, an increase of over 32% compared with the same period last year
  • Recorded first significant revenues from VIVO’s Australian business in 2020
  • In October 2020, began streamlining its Napanee, Ontario operations and integrating the operations of its Napanee and Hope LP’s to achieve production cost and efficiency improvements.

Subsequent to year end:

  • Pharmascience Inc., VIVO’s strategic partner for specific medical cannabis formulations, received its Cannabis Standard Processing License for its Quebec-based facility to formulate and process cannabis and derivative products into finished products; On track to manufacture first medical cannabis product produced under pharmaceutical quality standards in 2021
  • Released brick hash as part of VIVO’s Cannabis 2.0 product lineup and expected to release a new line of topicals in Q2 2021, VIVO’s 9th and 10th product formats, respectively
  • Vanluven facility received EU-GMP certification allowing VIVO to export cannabis products for sale in Europe and Beacon Medical Germany GmbH received an import license to allow imports of medical cannabis flowers
  • Closed an $8 million public offering to help fund VIVO’s growth

Management Commentary

“While 2020 presented its share of challenges, we did a lot to better position VIVO for the future and we are beginning to see the early results of these efforts,” said Richard Fitzgerald, interim CEO of VIVO. “We have already had some noteworthy achievements in 2021. The first of which is obtaining EU-GMP certification at our Vanluven facility, which enables us to accelerate our international growth plans. We also continue to enhance our Cannabis 2.0 line of products with the introduction of two new product formulations, brick hash and topicals, and look forward to introducing our first medical cannabis product produced under pharmaceutical quality standards later this year.”

Financial Summary

Net revenue for the fourth quarter of 2020 was $6.2 million which represents a 23% decrease quarter-over-quarter as compared to Q3 2020. This decline is primarily due to the timing of re-orders post initial stocking of cannabis 2.0 products earlier in the year and a COVID-driven shift in market demand to lower priced products. VIVO continued to sustain relative premium prices for its medical and adult-use dry flower products, with a net average selling price (net of excise) of $6.01 per gram in the fourth quarter of 2020 up 11% from the third quarter of 2020 due to product mix.

Sales, general and administrative expenses were $5.1 million in the fourth quarter of 2020, compared to $4.3 million in the third quarter of 2020, an increase of 19% driven by restructuring costs. The Company’s adjusted EBITDA(1) was ($4.8) million for the quarter, compared with ($2.6) million in Q3 2020, the difference primarily due to an inventory write-downs, price protection accruals, and restructuring. During the year-end audit, an annual goodwill impairment test was performed and the Company determined an impairment charge of $33.5 million was required as the Canna Farms CGU carrying value was found to exceed its recoverable amount.

Key Performance Indicators

KPI (P&L amounts in millions)

Q4 2020

Quarter Change

Q3 2020

Net Revenue








Adjusted EBITDA (1)




Cash and equivalents




Active patients (2)




Net flower price per gram





Adjusted EBITDA is not a measure of financial performance under IFRS. For the Company’s definition of Adjusted EBITDA, see the Company’s management’s discussion and analysis for the three months and year-ended December 31, 2020, available under the Company’s profile at


Represents active patients (as of the end of the quarter) who purchase medical cannabis directly from the Company, including the temporary six-month extensions post March 13, 2020 based on Health Canada’s amendment due to COVID-19. Due to the expiry of this extension, Canna Farms incurred a modest drop in active patients in Q4 2020.

Business Update

In 2020 VIVO restructured its $38 million convertible debenture liability through cash repurchase, equity conversion, and maturity date extension.  As at December 31, 2020 the Company had $6.6 million 6% convertible debt remaining, due to mature September 15, 2022.

Subsequent to year end the Company closed an $8 million public offering to help fund the Company’s growth plans. As at December 31, 2020 (not including the financing subsequent to year-end), VIVO had a cash balance of $5.7 million at the end of the quarter with another $7.0 million held in equity investments.

In November 2020, VIVO announced the planned retirements of both its Chair and the Company’s Chief Executive Officer. Mr. Richard Fitzgerald has assumed the role of VIVO’s Chair and is acting as interim CEO of VIVO. The Company’s search for a permanent CEO is ongoing.

Strategic Priorities

VIVO remains focused on executing against its four strategic priorities. The Company has made significant progress in enhancing supply and production capabilities, expanding its customer network, increasing product innovation and accelerating its international medical business. VIVO believes focusing on these four priorities will generate long-term shareholder value and accelerate the path to profitability.

1. Enhance Supply and Production Capabilities

VIVO continues to adhere to a measured and disciplined approach to capacity expansion and production capabilities by ensuring initiatives pursued are cost effective and will be capable of meeting growing patient and consumer demand.

  • A new pre-roll machine in Hope has been commissioned and is expected to result in increased output with significant cost reduction.
  • VIVO completed its first full year of cultivation at its Kimmetts facility, resulting in the largest harvest in the Company’s history. The use of airhouse technology results in more reliable cannabis compared with outdoor growing as it mitigates the risk of weather and pest events that can easily destroy an entire outdoor crop. Its benefits over outdoor grow also include improved light quality, controlled air flow and humidity, and the ability to use supplemental heat to extend the growing season as required.

2. Create a Broad and Loyal Customer Network

VIVO has a strong portfolio of brands in both the medical and adult-use markets and is working to position itself as one of the best cannabis companies to interact with from the perspectives of our patients and recreational users as well as our prescription, distribution, and production partners.

VIVO continues to maintain strong market share in the cannabis concentrates space. Canna Farms is known for producing award-winning, BC indoor-grown, craft cannabis flower and newly launched solvent-less extracts and edibles.

  • VIVO recently released brick hash as part of the Company’s Cannabis 2.0 product lineup. Brick Hash is VIVO’s second hash concentrate it has introduced to the market following the successful launch of bubble hash in 2020.
  • In January 2021, VIVO launched its products in the Quebec market and its Canna Farms™ BC Kief brand was the province’s first in the kief category.
  • At the end of 2020, VIVO launched its next generation Fireside™ Blaze, ultra-high THC distillate vape cartridge to consumers in Alberta, which was extracted using state-of-the-art cryo-ethanol extraction and thin film distillation, there are no cutters, fillers, flavours, or additives in this pure, smooth and potent vape option.

3. Build an Innovation-Driven Branded Organization  

VIVO has a strong commitment to pursuing innovation throughout its value chain. The Company is also using its robust data insights as a foundation for the development of novel products with a strong competitive edge and high margins.

  • VIVO expects to release a new line of topicals, VIVO’s 10th product format type, initially on its medical platform starting in Q2 2021.
  • Following Pharmascience Inc.’s receipt of Health Canada’s Cannabis Standard Processing License for its Quebec-based facility to formulate and process cannabis and derivative products into finished products, VIVO remains on track to manufacture its first medical cannabis product produced under pharmaceutical quality standards in 2021. VIVO believes that a significant catalyst to increased medical cannabis use is the introduction of new medical-grade, precise-dosed, stable formulations.

4. Accelerate International Medical Business Growth 

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.

  • In March 2021, VIVO’s Vanluven facility received EU-GMP certification, which allows the Company to export cannabis products for sale in Europe. In addition, VIVO’s subsidiary, Beacon Medical Germany GmbH, has received an import license to allow imports of medical cannabis flowers. EU-GMP certification and the import license are required in order to import medical cannabis products from Canada for sale in Germany and other European countries. VIVO now has all required approvals to begin selling its own, Vanluven facility produced, dry flower in Germany.
  • Beacon Medical Germany is expecting final approval of product from Linneo Health, a Spanish-based EU-GMP certified supplier of pharma-grade cannabis for import to Germany once successful quality results have been obtained.
  • VIVO’s Australian business continues to advance with the Company recording strong revenues in Q4 2020 of $0.9 million and $1.3 million in 2020. VIVO is well positioned to capitalize on this rapidly growing market.

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. VIVO has a collection of premium brands, each targeting different customer segments, including Canna Farms™, Beacon Medical™, Fireside™, Fireside-X™, Lumina™ and Canadian Bud Collection™. Harvest Medicine™, VIVO’s patient-centric, scalable network of medical cannabis clinics, has serviced over 150,000 patient visits. VIVO is pursuing several partnership and product development opportunities and is focusing its international efforts on Germany and Australia. For more information visit: