Ms. Ivana Maric reports

AVICANNA PROVIDES CORPORATE UPDATE AND PRELIMINARY Q2 RESULTS

Avicanna Inc. has provided a corporate update and preliminary financial results of Q2 2023.

The update includes:

• Q2 2023 revenues: Q2 2023 revenues of approximately $3.3-million, representing an approximately 200-per-cent increase over Q1 2023 revenues of $1.2-million, including approximately $2.5-million in sales arising from the Medical Cannabis by Shoppers platform since May 29, 2023.
• Medical Cannabis By Shoppers: On May 29, 2023, the company announced that the definitive asset purchase agreement with Shoppers Drug Mart Inc. for Avicanna to acquire the Medical Cannabis By Shoppers business was fully executed. On May 4, 2023, Avicanna announced the execution of the definitive master service agreement with Northern Green Canada (NGC). NGC is a Canadian licensed producer that is tasked with providing logistics and fulfilment services for Avicanna's on-line cannabis care platform (MyMedi.ca). On May 29, 2023, NGC and Avicanna successfully transitioned the Medical Cannabis by Shoppers inventory and fulfilment services to NGC.
• MyMedi.ca: MyMedi.ca is Avicanna's medical cannabis care platform that will be made available nationwide on Aug. 1, 2023. MyMedi.ca will be offering a portfolio of over 200 product SKUs (stock-keeping units) from over 20 selected brands, including four of Avicanna's brands and over 25 of Avicanna's product SKUs, as well as pharmacist-led, bilingual services and patient support programs. Additionally, MyMedi.ca will be providing adjudication and reimbursement services from public and private payers to a significant proportion of the current active patients.
• Commercial priority: The Canadian market continues to be the company's focus, where Avicanna has commercialized over 25 product SKUs through four different brands. Currently, Avicanna has 113 commercial listings as it nears the end of Q2 2023; with 61 commercial listings on four national medical cannabis channels and 52 product listings on six provincial adult use channels. This represents a 34-per-cent increase over the 84 commercial listings in Q4 2022.
• Proprietary SEDDS capsules: On June 25, 2023, Avicanna announced the expansion of the strategic manufacturing agreement with MediPharm Labs Corp., adding the manufacturing and commercialization of the company's proprietary SEDDS capsules. Avicanna's proprietary SEDDS capsules are to be manufactured by MediPharm to GPP (good production practice) and GMP (good manufacturing practice) standards to meet product channel requirements in Canadian and international markets. The capsules are expected to be launched under the RHO Phyto brand in Canadian medical cannabis channels during the second half of 2023.
• Global cost reduction initiatives: In 2021, the company initiated optimization efforts to actively decrease operating costs, including rationalization of redundancies in human resources, divestment of non-core underperforming assets and reduction of outside service fees. These combined efforts resulted in the company's lowest Q1 2023 operating expenses since 2019. Management continue to take steps to further improve the company's working capital and financial position.

Join Avicanna's management which is providing a corporate update on June 28 at 12 p.m. ET.

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 research and development and clinical development, that has led to the commercialization of more than 30 products across various market segments.

We seek Safe Harbor.