Avicanna publishes its first quarter 2022 financial statements and a management change


Avicanna Inc.


TORONTO, May 12, 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 March 31, 2022 (“Q1 2022”) and the transition of the CFO role.

“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.

Highlights of the first quarter of 2022:

Approximately 35,000 products sold, which represents a 41% increase in sales compared to last quarter and a 765% increase compared to the first quarter of 2021. This is explained by a 44% increase in the number of product listings Canadians in the last quarter in the medical and adult use channels.

Revenues of $1.04M, representing a 283% increase in revenue over Q1 2021 and net earnings of $0.01 per share compared to a net loss of ($0.14) per share in Q1 2021 .

Continuous cost reduction, resulting in general and administrative expenses of $2 million and a 28% reduction from general and administrative expenses of $2.85 million in the first quarter of 2021.

Signature of a supply agreement with the Chilean pharmaceutical company Knop Laboratorios SA. to supply Aureus branded products.

Changes to the board and management team with the appointment of two experienced pharmaceutical executives, Eileen McCormack to the board and Stephen Kim as chief legal officer.

Start of studies on epidermolysis bullosa with the Hospital for Sick Children. The study led by Dr. Elena Pope aims to analyze the efficacy of the Company’s dermatological products on a rare skin disease.

Closing of a non-brokered private placement of $2.5 million at $0.35 per unit, where each common share would entitle the holder to half a warrant exercisable at $0.40 per share.

Progress in the pharmaceutical and medical cannabis pipeline, including the completion of the company’s first international drug dossier for Trunerox™ in Brazil and the advancement of several medical cannabis pipeline products, including water-soluble formulations water.

Other post-Q1 2022 highlights

Entered into an exclusive license and supply agreement with a pharmaceutical company based in South America, to market up to four (4) of Avicanna’s proprietary cannabinoid pharmaceutical preparations. Avicanna can potentially earn up to C$1.3 million in upfront license fees by achieving various milestones.

Closing of a $1.5 million strategic private placement with lead investor Ei. Ventures, Inc., a technology company that seeks to enhance mental wellness through psychoactive compounds, nutraceuticals and technologies, and with the participation of other investors.

Extended Phyto RHOMT Cannabigerol-based form (“GBC”) products in the Canadian market, including oral, sublingual and transdermal formulations, which are expected to be available through various medical channels and for adults across Canada by the third quarter of 2022.

Signature of an import and distribution agreement with Bio-Gate AG in Germany, to extend the Pura H&W™ dermo-cosmetics brand in the European Union. Pura H&W’s evidence-based dermo-cosmetic product portfolio will be marketed through Bio-Gate’s existing distribution channels with initial launches planned in Germany, Austria and Switzerland in the second quarter of 2022.

CFO Transition

The Company has accepted the resignation of its Chief Financial Officer, Dave Sohi, effective May 18, 2022. He will be leaving to pursue another opportunity and will provide transition advisory services to the Company for a period of time. The Company is pleased to announce the arrival of Mr. Phillip Cardella, CPA, CA as Interim Chief Financial Officer effective May 18, 2022. Previously, Mr. Cardella served as Senior Vice President of Finance and, prior to joining the Company, practiced accounting with MNP LLP, one of Canada’s largest full-service accounting and business advisory firms.

“We would like to thank Dave for his 5 years of service during which he helped bring our shared vision to life in a multinational enterprise at the commercial stage and helped overcome the many challenges associated with building a business operating in an industry new and regulated. We wish Dave all the best in his future endeavours,” said Azadian. “We are also delighted that Phil is able to take on the role of Interim Chief Financial Officer with the perspective and knowledge of the business that only someone who has worked here can have,” Azadian continued.

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.

Click to watch Avicanna 2022 corporate video

SOURCEAvicanna Inc.

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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.


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