VIVO Cannabis Inc (OTCMKTS:VVCIF) reported revenues of $6.2 million (down 23% QoQ) in Q4 2020.
The drop in revenues in Q4 is on the backdrop of a shift in market demand to lower-priced products because of coronavirus impact and reorders timings after restocking of the cannabis 2.0 products.
VIVO enjoyed improved prices for its adult-use and medical-use products, maintaining a per gram average selling price of $6.01 in Q4 2020. The product mix helped the company to improve sales by 11% compared to Q3 2020.
Its GA and sales expenses increased marginally to $5.1 million in Q4 2020 from $4.3 million in Q3 2020. It is on the backdrop of an increase in restructuring costs.
VIVO utilized equity conversion, cash repurchase, and maturity date extensions for restructuring the debt of $38 million in Q4 2020. It holds the balance convertible debt (CD) of $6.6 million as of December 31, 2020, and due to get matured on September 15, 2022.
After 2020, the company raised a capital of $8 million through a public issue to support its growth. It holds $7 million in equity investments. The company also holds a cash balance of $5.7 million by the end of 2020.
Following the retirement of its CEO and Co-Chair in November 2020, Richard Fitzgerald took over as the chair of VIVO. He also acts as an interim CEO of the company.
Manufacturing capabilities expands
VIVO achieved significant progress in improving the manufacturing capabilities and supply. It also expedited medical business across the world and engaged in product innovation besides customer network expansion. All these measures will help the company spur growth and profitability and offer rich dividends.
The company commissioned a pre-roll machine to enhance the output economically. It reported a record harvest in its history by completing the cultivation at its facility based in Kimmetts.
VIVO is pleased to provide reliable cannabis products using airhouse technology. The indoor facility reduces the risks of pest events and unpredictable weather by ensuring controlled humidity and airflow, improved light, and optimal heat.
VIVO maintains a strong footprint in the cannabis concentrates segment.
The company enhanced its footprint in the Quebec market by launching innovative products.