Mr. Aras Azadian reports

AVICANNA AND MEDIPHARM LABS EXPAND STRATEGIC MANUFACTURING AGREEMENT FOR AVICANNA'S PROPRIETARY SEDDS TECHNOLOGY CAPSULES FOR CANADIAN AND INTERNATIONAL MARKETS

Avicanna Inc. has extended its existing strategic manufacturing agreement with Medipharm Labs Inc. for the commercialization of Avicanna's proprietary cannabinoid-based self-emulsifying drug delivery systems (SEDDS) technology capsules for the Canadian and international markets.

"We are happy to be advancing our proprietary SEDDS technology capsules to the market with MediPharm, who have demonstrated focus, alignment, and the necessary capabilities to manufacture and deliver these products across a number of markets and channels. We are excited about the potential of our proprietary single-dose formulations in both medical and pharmaceutical cannabinoid segments," stated Aras Azadian, chief executive officer of Avicanna.

Canadian commercialization under good production practices (GPP)

Under the expanded strategic manufacturing agreement, Avicanna intends to commercialize its proprietary SEDDS technology capsules, under the RHO Phyto brand, across domestic nationwide medical channels, including Avicanna's MyMedi on-line cannabis care platform and MediPharm's Canna farms platform. Additionally, MediPharm intends to commercialize the capsules across adult use wellness channels under its MediPharm Labs brand.

International and pharmaceutical potential under good manufacturing practices (GMP)

MediPharm intends to manufacture these proprietary capsules in accordance with GMP standards to fulfill domestic and international pharmaceutical standards. The expanded strategic manufacturing agreement provides that each of Avicanna and MediPharm may take steps toward offering these products internationally through existing internal infrastructure and externally with parties under contract.

About the SEDDS capsules

Due to the highly lipophilic nature and poor water-solubility of cannabinoids, the formulations currently available in the Canadian market have been generally described as having poor absorption and high variability of onset. SEDDS oral delivery systems offer an effective route for non-invasive and non-inhalation administration of cannabinoids. Avicanna's proprietary SEDDS technology demonstrated shelf-life stability with more than 90 per cent of the total cannabinoid(s) remaining after six months in accelerated conditions. The formulation's CBD (cannabidiol) and THC (tetrahydrocannabinol) dissolution profiles were also tested in biorelevant media which mimic human intestinal fluid and demonstrated more than 90-per-cent dispersion within one hour with continued stabilization of the emulsion. The company plans to advance specific formulations into preclinical and clinical development.

About Avicanna Inc.

Avicanna is a commercial-stage international biopharmaceutical company focused on the advancement and commercialization of evidence-based cannabinoid-based products for the global medical and pharmaceutical market segments. Avicanna has an established scientific platform, including R&D (research and development) and clinical development that has led to the commercialization of more than 30 products across various market segments:

• Medical cannabis and wellness products (Rho Phyto): The formulary offers a diverse range of proprietary formulations, including oral, sublingual, topical and transdermal deliveries with varying ratios of cannabinoids and is supported with continuing patient and medical community education. Rho Phyto has been established as a leading medical brand in Canada and is currently available nationwide to patients across several medical channels and continues to expand into new international markets.
• Pharmaceutical preparations and pipeline: Leveraging Avicanna's scientific platform, vertical integration and real-world evidence, Avicanna has developed an extensive pipeline of patent-pending drug candidates that are indication specific and in various stages of clinical development and commercialization. These cannabinoid-based drug candidates look 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 stage in South America.
• MyMedi.ca medical cannabis care portal: MyMedi.ca is Avicanna's medical cannabis care platform that is formed with the aim to better serve medical cannabis patients' needs and enhance the patient journey. MyMedi.ca will feature diverse and scientifically curated products from leading Canadian licensed producers, in addition to pharmacist-led patient support programs and educational resources, to facilitate the incorporation of medical cannabis into health care regimens. MyMedi.ca is also providing specialty services to distinct patient groups such as veterans and collaborating with public and private providers for adjudication and reimbursement.

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