Vivo Cannabis (TSX: VIVO) this morning announced that it has cancelled a proposed $5.1 million private placement of its common shares. The placement was announced on October 6 originally, with units to be sold at a price of $0.15 per share. Rather than stating that it was cancelled as a result of lack of demand, Vivo has indicated that rather it was cancelled due to unusual trading activity.
Specifically, the company states, “The decision to terminate the offering was taken amidst what the Company views as highly unusual trading activity in VIVO’s shares.” The company comments that the two days before the announcement a total of 236,517 common shares were traded in the company. Comparatively, the two days after the $5.1 million placement announcement, a total of 18,980,048 common shares were traded, a 8,000% increase.
While this appears correct, it should be mentioned that the company announced a $50 million base shelf prospectus on the 6th as well. The volume spike however occurred beginning on the morning of October 7th.
Commenting on the cancellation, CEO Barry Fishman stated, “While VIVO is unaware of the reasons for the increased trading activity and downward pressure on our stock price, we have reported last week’s highly unusual trading activity to securities regulators.”
Vivo Cannabis last traded at $0.125 on the TSX.
Information for this briefing was found via Sedar and Vivo Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
