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TORONTO, Aug. 15, 2022 (GLOBE NEWSWIRE) — Avicanna Inc. (“Avicanna“or the”Company”) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN), a commercial-stage international biopharmaceutical company focused on bringing evidence-based cannabinoid products to market, is pleased to announce the filing of its interim financial statements for the three-month period ending June 30, 2022 (“Q2 2022”).
“We are thrilled to report on our continued progress and go-to-market efforts globally, where we have primarily focused on growing our four brands in the Canadian market and have been successful in doing so. We also continued the continuous optimization of our operations, which resulted in significant cost reductions during the quarter, in the pursuit of self-sufficiency,” said Aras Azadian, CEO of Avicanna Inc.
Q2 2022 Highlights:
- Revenue over 6 months of $2.14M, representing a 101% increase over the same period of the previous year, supported by an increase in international and licensing revenues and further progress in commercialization efforts in Canada.
- Advancement of cost reduction initiatives, including a 35% reduction in South American headcount and an expected reduction in worldwide operating expenses (“OPEX”). This was coupled with approx. $1 million in proceeds from the sale of non-core subsidiary Sativa Nativa and the divestiture of other non-core and non-core business units, including its medical cannabis division in Colombia.
- Exclusive license and supply agreement with a major South American pharmaceutical company, to market up to four (4) of Avicanna’s proprietary cannabinoid pharmaceutical preparations. Through the Licensing and Supply Agreement, Avicanna will license the Company’s intellectual property and supply end products initially beginning with its proprietary oral 10% cannabidiol preparation. Under the partnership, Avicanna can earn up to C$1.3 million in upfront license fees by achieving near-term milestones.
- Progress of international expansion, with entrance at 18e international market for all Avicanna products. New markets include Aureus-branded exports to Lesotho with standardized genetics and Portugal with THC and CBD extracts, which supported 92% growth in international revenue compared to the same period last year .
- Extension of the RHO Phyto form with Cannabigerol (CBG) products in the Canadian market, including sublingual and transdermal formulations, which are available in Ontario and will be available through various medical channels and channels across Canada in Q3 2022.
- Extension of the partnership with Bio-Gate AG to launch Pura H&W in Europe. The exclusive distribution agreement includes 5 SKUs from Pura H&W’s evidence-based dermo-cosmetics portfolio that will be marketed through Bio-Gate’s existing distribution channels.
- Advances in epilepsy research including the launch of a new preclinical research collaboration with Dr. Mac Burnham and the University of Toronto to analyze the potential role of specific rare cannabinoids in models of epilepsy. Ongoing epilepsy research is associated with RHO Phyto Micro drop 50 formulation earning the company’s top performing SKU on the Medical Cannabis by Shoppers™ platform primarily due to its adoption by Canadian neurologists for their pediatric epileptic patients.
- Progress in the pharmaceutical and medical cannabis pipeline, including completing the company’s first international drug dossier submission for Trunerox in Brazil under RDC327 legislation and in Colombia and Ecuador as a generic drug.
- $1.5M strategic private placement with lead investor Hey. Ventures, Inc.a technology company that seeks to enhance mental well-being through psychoactive compounds, nutraceuticals and technology, and with the additional participation of other investors.
Other highlights after Q2 2022
- Agreement to develop and commercialize adaptogenic nutraceuticals. In partnership with Ei. Avicanna Ventures will use existing science platform and drug delivery systems to develop and commercialize Psilly™ branded functional mushroom products. The initial focus of research and development efforts will be on functional, apoptogenic, mushroom-based formulations in the form of user-friendly, single-dose products.
- The NBA Players Association has announced Re+play as an official partner. The performance-based wellness and recovery line created by Harrington Wellness has partnered with the NBPA to bring topical and technologically advanced products to US consumers through Amazon and Walmart in the US. Avicanna’s technology and formulations are the foundation of Re+Play products and the company will earn royalties for its technology, supplying CBD to the US market in addition to marketing Re+Play in Canada where the products have already launched on the Ontario cannabis market. Store (“OCS”) and the Medical Cannabis by Shoppers™ platforms.
During the second quarter, the company continued to make commercial progress across all of its business units, opened new international markets and demonstrated a steady increase in the number of Canadian commercial ads in the medical and adult use channels. The company, however, faced an industry-wide price squeeze and inventory issues with one of its manufacturing partners in Canada, which led to a delay in delivery of specific commercial SKUs. and the ultimate need to change manufacturing partners in the second quarter, the results of which are in the short term is a reduced revenue expectation of C$6 million in 2022. In the long term, management believes that the change in manufacturer in Canada will result in improved margins and more consistent delivery of its proprietary products as sales efforts and revenues continue to grow. The company also continued to expand its scientific platform, advance its pharmaceutical pipeline and further establish its brands internationally.
About Avicanna Inc.
Avicanna is an international, commercial-stage biopharmaceutical company focused on advancing and commercializing evidence-based cannabinoid products for the global medical and pharmaceutical market segments. Avicanna has an established scientific platform including R&D and clinical development which has led to the commercialization of more than thirty products in different market segments:
Medical cannabis and wellness products: Marketed under the RHO Phyto™ brand, these medical and wellness products are a range of pharmaceutical grade cannabinoid products containing varying ratios of cannabidiol (“CBD”) and tetrahydrocannabinol (“THC”). The product portfolio contains a comprehensive list of products including oral, sublingual, topical and transdermal deliveries that have controlled dosing, enhanced absorption and stability studies supported by preclinical data. The form is marketed with education and training for consumers, patients and the medical community.
Pharmaceutical pipeline: Leveraging Avicanna’s scientific platform, vertical integration and real-world evidence, Avicanna has created a pipeline of patent-pending drug candidates that are indication-specific and in various stages of clinical development. and marketing. These cannabinoid-based drug candidates seek to address unmet medical needs in the areas of dermatology, chronic pain, and various neurological disorders. Avicanna’s first pharmaceutical preparation (Trunerox™) is in the drug registration phase in South America.
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Caution Regarding Forward-Looking Information and Statements
This press release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information in this press release can be identified by the use of words such as “may”, “could”, “might”, “will”, “likely”, “expect”, “anticipate”. , “believes”, “intends”, “plans”, “expects”, “projects”, “estimates”, “outlooks” and other similar expressions. Forward-looking information contained in this press release includes, but is not limited to, statements relating to the Offer, the use of the proceeds of the Offer, the receipt of all Toronto Stock Exchange approvals with respect to the ‘Offer, statements regarding the Company’s future business operations, potential collaborations, management’s opinions or beliefs, and future business objectives. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on forward-looking information as the Company cannot guarantee that it will prove to be accurate. Actual results and developments may differ materially from those contemplated by such statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. These risks and uncertainties include, but are not limited to, current and future market conditions, including the trading price of the Company’s common shares, and the risk factors set forth in the Company’s Annual Information Form dated March 31, 2022. , filed with the Canadian securities authorities and available under the Company’s profile on SEDAR at www.sedar.com. The statements contained in this press release are made as of the date of this press release. The Company disclaims any intention or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.