Avicanna Announces Filing of Interim Financial Statements for Period Ended June 30, 2021 and Provides Corporate Update

Published: September 13, 2021

Avicanna Announces Filing of Interim Financial Statements for Period Ended June 30, 2021 and Provides Corporate Update

Avicanna Inc., a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products, is pleased to announce the filing of the Company’s unaudited interim financial statements for the three- and six-month period ended June 30, 2021, accompanying management’s discussion and analysis and related certifications ‎‎(collectively, the “Documents”) and provides a corporate update. Electronic copies of the Documents are available on SEDAR (www.sedar.com) under the Company’s issuer profile.

With the filing of the Documents, the Company anticipates that its continuous disclosure record is up to date in accordance with applicable securities law and intends to seek the revocation of the cease trade order issued by the Ontario Securities Commission in respect of the Company on June 11, 2021.

“We would like to express our gratitude to our shareholders for their patience during this unprecedented period and we thank our new auditors Kingston Ross Pasnak LLP for their professionalism in completing our 2020 audit in an expedited, yet thorough, manner. I am proud to say that, despite facing the prior audit delays and the resulting cease trade order, Avicanna has continued to meet its operational milestones, including both research and commercial initiatives, which have positioned the Company in its best standing to date. While Avicanna has been challenged with its cash position these last few quarters, we fortunately have our shareholders’ support and confidence in the team and business model. I expect the positive commercial traction we are experiencing to place us on good footing for the future,” said Aras Azadian, CEO.

Corporate Update
In the first two quarters of fiscal 2021, the Company has made significant progress in all facets of its business, notably with respect to commercial, R&D and clinical, strategic partnership initiatives:

Commercial

  • Medical cannabis in partnership with Medical Cannabis by ShoppersTM: Since the launch of Avicanna’s products in the second half of 2020, the Company has expanded the number of products available to 10 SKUs to patients who use cannabis for medical purposes to include THC-Free RHO Phyto branded non-inhalation products as well as Pura Earth topical products. Demand for Avicanna’s products has increased quarter over quarter with over 15 healthcare clinics and over 600 prescribing health care practitioners having recommended Avicanna products on the Medical Cannabis by Shoppers platform.
  • Retail (adult use) channels in Canada: As at June 30, 2021, a total of 10 listings of RHO Phyto and Pura Earth-branded product lines across provincial retail sales channels in Canada in Ontario, Manitoba, Saskatchewan, and New Brunswick. Subsequent to Q2 2021, Avicanna products are being offered for sale in Alberta, another major Canadian cannabis market.
  • Aureus™ branded exports expanded into 11th international market: Export of cannabinoid active pharmaceutical ingredients or feminized seeds into a growing number of new markets including Chile, Peru, Brazil and Austria subsequent to Q2 2021. Avicanna expects further growth of its Aureus™ supply chain, considering the further expansion of the regulatory framework in Colombia to allow for export of cannabis flower.

R&D, clinical, and pharmaceutical pipeline updates

  • Trunerox™: Completion of pharmaceutical pilot production of epilepsy drug candidate, branded as Trunerox, under GMP and ICH guidelines, a major step required for commercialization in South America.
  • UHN collaboration: Progression of the partnership related to establishing optimal cannabinoid ratios and delivery for epilepsy treatment.
  • University of Guelph collaboration: Completion of the initial phase of pre-clinical studies on the RHO Phyto formulations.
  • TRU collaboration: Research commencement with Thompson Rivers University (“TRU”) for the evaluation of cannabinoids for antibacterial effects and evaluation of cannabinoid-based products in tissue model of inflammation.
  • Osteoarthritis drug candidate: Completion of the initial phase of pre-clinical osteoarthritis evaluations after successful in vitro studies completed on RHO Phyto’s Extra Strength Deep Tissue topical drug candidate.

Strategic partnerships

  • re+PLAY and Viola: Strategic partnerships with two companies founded by former NBA star Al Harrington. These include specific formulations developed by Avicanna for the re+PLAY athletic recovery brand, which are expected to be commercialized in the US and Canada in Q4 2021, as well as licensing and commercialization of Viola™ branded products to be used with Avicanna formulations in Canada also expected to be commercialized in Q4 2021.
  • Sunnybrook Hospital: Strategic partnership with Sunnybrook Health Sciences Centre (“Sunnybrook Hospital”) whereby Sunnybrook Hospital will dispense the Company’s RHO Phyto products to patients with appropriate medical authorization onsite at the Odette Cancer Centre pharmacy.
  • Exclusive arrangement with Heritage: Exclusive agreement with Heritage Cannabis Holdings Corp. (“Heritage”) to commercialize evidence-based topical products through Heritage’s medical cannabis channels, including its deep tissue and skin care formulations. Heritage will lead medical sales and commercialization across non-competing medical channels in Canada under the Opticann brand and commits to meeting minimum sales to maintain its exclusivity of the Avicanna formulations.
  • Brazilian pharmaceutical partnership: Execution of a multi-year supply agreement by Avicanna’s Colombian subsidiary, Santa Marta Golden Hemp. S.A.S., with a Brazilian pharmaceutical company to supply industrial volumes of high THC and high CBD full spectrum psychoactive cannabis resin. The raw materials are expected to be used by the Brazilian pharmaceutical company in the production of medicinal cannabis products for commercialization pursuant to Brazil’s medicinal cannabis regulations in what is estimated to be largest cannabis market in South America.
  • Bio-Gate AG: Completion of the initial development phase for prospective products pursuant to Avicanna’s joint development agreement with Bio-Gate AG (“Bio-Gate”), a German bio-medical company. Bio-Gate will develop and deliver CBD-based dermatology and cosmetic products. Combination of Avicanna’s intellectual property and Bio-Gate’s MicroSilver BG™ technology is aimed to target indications including eczema, acne and atopic dermatitis.

About Avicanna
Avicanna is a commercial stage Canadian biopharmaceutical company and an established leader in cannabinoid research, development, and evidence-based products for the global consumer, medical, and pharmaceutical market segments. Avicanna conducts its research in Canada including its R&D headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto, Canada, located in the MaRS Discovery District, and in collaboration with leading Canadian academic and medical institutions.

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