Vivo Cannabis (VIVO.V) is the latest Canadian LP to sign a distribution partnership, reaching a deal with national cannabis distributor, Green Hedge Education & Distribution (GHED).
The multi-year deal will facilitate the supply of Vivo Cannabis’ product to licensed retailers and wholesalers nationwide.
“After a disciplined selection process, Vivo is thrilled to partner with Green Hedge, a results-driven recreational cannabis distribution team, to represent our key brands, including FIRESIDE, Lumina and Canna Farms.”
-Barry Fishman, CEO of Vivo Cannabis
Another brand Vivo Cannabis has been touting is its Beacon Medical line. As reported by Equity Guru’s Lukas Kane on Monday, the company launched Beacon Medical’s website this week and has scheduled nationwide talks to educate healthcare providers on these products for this fall.
There is little information available about GHED except that the company incorporated in February of this year, is located in Toronto and is led by Andrew von Teichman, the founder of wine import agency Von Terra.
Von Teichman said his company was “excited” to be “providing Vivo with a socially responsible, national distribution solution that we believe will provide a competitive advantage” when legalization is enacted on October 17.
The partnership with GHED is just the latest chapter in the story of Vivo Cannabis’ expansion, but it’s by no means the only significant one this month.
Vivo finishes first seasonal ‘airhouse’
On Wednseday, the company announced it had completed the construction of its first “innovative seasonal airhouse,” in Napanee, Ontario.
Airhouses are a greenhouse alternative widely used in commercial agricultural applications to produce flowers, vegetables and fruits, substituting glass for high-quality vinyl. They are much more cost-efficient than building greenhouses while being safe, effective and environmentally friendly.
-Vivo Cannabis
Additionally, these units can remain inflated during hurricane force winds due to their “positive internal pressure” which is maintained through wind collection towers.
The greenhouse has 17,000 square feet of cultivation space which the company expects will deliver two harvests annually. The greenhouse will have 68,000 square feet of cultivation space once airhouse construction is completed in the coming weeks.
The power consumption of their airhouse is 20 kilowatts which Vivo Cannabis claims claims is far below the energy requirements of conventionally designed greenhouses.
The company says it aims to build three more of these units before the end of the year.
Vivo upgraded to OTCQX
The day after announcing the completion of their first greenhouse, Vivo Cannabis began trading on the OTCQX Best Market, an upgrade from the OTCQB Venture Market, under the symbol VVCIF.
The OTCQX market is reserved for established U.S. and global companies that meet high financial standards, provide timely news and disclosure to investors, and have a professional third-party sponsor introduction.
Fishman said his company was “excited to increase liquidity and transparency for our shareholders through an established and respected platform.”
Vivo Cannabis’ upgrade application was sponsored by J.P. Galda & Co.
Vivo’s value
Equity Guru’s Lukas Kane made this observation about where Vivo Cannabis fits into a cannabis market teeming with LPs:
As of September 14, 2018, “VIVO has a healthy balance sheet with over $100 million in cash and is well-positioned to accelerate growth in both Canada and internationally.”
Vivo’s market cap is $470 million.
That’s not tiny.
But – for perspective – it’s about 3% of Canopy Growth’s (WEED.T) market cap of $15 billion.
Canopy Rivers (RIV.V) has the same amount of cash, less deal-flow, and double the market cap.
The company has signed a supply deal with Ontario, acquired interests in BC and now has a national distributor backing them up.
As far as we can tell, whatever Vivo Cannabis is doing is working.
Full disclaimer: Vivo Cannabis is an Equity Guru marketing client and we own stock.