/R E P E A T — VIVO Cannabis™ Announces Second Quarter 2020 Results/

• Canna Farms’ 10,000 square foot Phase 5 expansion received all necessary Health Canada approvals in the quarter. Operational rooms are being fully utilized for storage and processing, and planting has commenced in the cultivation areas, using a two-tiered growing system.

• Commissioning of the Vanluven facility’s ethanol extraction suite is complete and commercial production is underway. The resulting high quality, low production-cost resins and distillates will be used as inputs for VIVO’s oils, vape cartridges, and other Cannabis 2.0 products, such as the first Canadian-launched shatter by Fireside™ X.

• Following planting in the first quarter of 2020, the seasonal airhouses at the Kimmetts facility now contain over 10,000 healthy plants, most of them over seven feet tall.

Canna Farms™ brand is one of the leading brands in the industry, known for producing award-winning, BC indoor-grown, craft cannabis flower and newly launched solvent-less extracts and edibles.” data-reactid=”62″>VIVO has a strong portfolio of brands in both the medical and adult-use markets. Its Canna Farms™ brand is one of the leading brands in the industry, known for producing award-winning, BC indoor-grown, craft cannabis flower and newly launched solvent-less extracts and edibles.

• VIVO continued to maintain top-tier net pricing of $6.07 per gram of dry flower and implemented some price reductions to stay competitive within the premium market segment.

• VIVO entered into a product supply agreement and a clinic services agreement with Medical Cannabis by Shoppers™. Under the terms of the supply agreement, VIVO’s licensed producers will offer a broad portfolio of Canna Farms™ and Beacon Medical™ branded medical cannabis products through the Medical Cannabis by Shoppers™ online sales platform to patients across Canada, including its latest Cannabis 2.0 offerings such as chocolates and extracts. Under the terms of the clinic services agreement, VIVO’s subsidiary, Harvest Medicine, will provide cannabis education services to patients who are appropriate candidates for cannabinoid-based products and provide consulting services to the Medical Cannabis by Shoppers™ Cannabis Care team.

• VIVO entered into a collaboration agreement with Veterans’ House (“Veterans’ House“), under which the Company will provide sponsorship and support to joint programs for Canadian Armed Forces veterans. Veterans’ House is a federally registered non-profit organization that provides veterans suffering from mental illness and operational stress injuries, such as post-traumatic stress disorder, access to counseling and peer support programs.

• In Q2 2020, VIVO began shipping products under its Canadian Bud Collection™, brand, which launched in Q1 2020 and is directed at the popular value segment of the market.

• After temporarily realigning Harvest Medicine’s resources to provide patient-focused services through its telemedicine platform, HMED Connect, at the outset of the COVID-19 pandemic, Harvest Medicine clinics are now “patient ready”, with precautions in place to accommodate walk-in patients and help stop the spread of COVID-19, while continuing to offer patients online options to receive services.

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.

• During Q2 2020, VIVO made initial shipments of its Fireside X shatter product to several provincial wholesalers, including in British Columbia, where the provincial wholesaler sold its entire purchase within the first week. This is the fifth significant concentrates product format launched by VIVO, following Fireside vape cartridges, and Canna Farms’ bubble hash, kief and live rosin.

• This month VIVO introduced Beacon Medical softgel capsules, available through its Canna Farms on-line medical marketplace. Beacon softgel capsules provide patients with a convenient format to ingest cannabis in a precise-dosed format, increasing choice for the Company’s more than 25,000 registered patients.

• Subsequent to the signing of an exclusive agreement with Vertosa Inc., an infusion technology company based in Oakland, California, for Canadian production rights, Vertosa’s equipment has been installed at the Vanluven facility. VIVO expects to begin production of active emulsions using this technology for the cannabis beverage market in the coming months.

• VIVO advanced into the next stage of product development with partner, Pharmascience Inc., a global pharmaceutical company based in Montreal, Quebec, for a unique line of specific medical cannabis formulations produced under pharmaceutical quality standards. VIVO believes that a significant catalyst to increased medical cannabis use is the introduction of new medical-grade, precise-dosed, stable formulations, which the partnership with Pharmascience is intended to target. The first products from this partnership are expected to be introduced in the Canadian market by the end of Q1 2021.

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.

• VIVO’s Australian business continues to rapidly advance, achieving record sales in Q2 2020. Australia’s Therapeutics Goods Administrator (TGA) reported a record number of new patient approvals in July of 2020 and triple digit growth in patient approvals year over year. VIVO is well positioned to capitalize on this rapidly growing market.

• VIVO continued to advance its European expansion strategy through its partnership with Linneo Health, a Spanish-based EU-GMP certified supplier of pharma-grade cannabis. VIVO’s subsidiary, Beacon Medical Germany, is expecting final approval of Linneo product for import to Germany in late 2020.

• Beacon Medical Germany was granted a narcotics licence in Germany, and is awaiting receipt of an import licence, the final permit necessary to facilitate imports from VIVO’s Vanluven facility and from other non-EU sources. EU-GMP certification of VIVO’s Vanluven Facility continues to advance, with a follow-up audit having recently been completed. The follow-up audit is an important step towards EU GMP-certification and is a requirement to import medical cannabis products from Canada for sale in Germany and other European countries.

VIVO continues to monitor COVID-19 developments and has implemented enhanced personal safety and sanitation protocols. VIVO’s production facilities are continuing operations and, to the Company’s knowledge, there have been no confirmed cases of COVID-19 among Company personnel. The Napanee and Hope facilities have extended hours and staggered shifts to facilitate physical distancing and ensure a safe work environment.