Mr. Aras Azadian reports

AVICANNA REPORTS Q3 2023 RESULTS

Avicanna Inc. has released the results of Q3 2023.

"We had the boldness to take on the challenge of acquiring the Medical Cannabis by Shoppers business and executed on integrating it into the newly developed MyMedi.ca to with a goal of being able to offer a comprehensive medical cannabis care platform and improve access for Canadian patients. We have remained dedicated and focused on evidence based medical application of cannabinoids and during this quarter we have solidified our business model and our capability to scale the business," stated Aras Azadian, chief executive officer of Avicanna.

Financial highlights:

• Record revenue of $6.27-million, representing an increase of 90 per cent over the previous quarter and 713 per cent over the same period last year.
• A nine-month revenue of $10.7-million, representing a major milestone in the company's history a 269-per-cent growth from the same period last year.
• Scalability of the business model was demonstrated with a comparable increase of 23 per cent in SG&A (selling, general and administrative) for the nine-month period.
• Best three-month financial performance in the company's history with an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $473,000 or loss of one cent per share during the third quarter.
• Improved consolidated gross margins of 47 per cent through developments in operational efficiencies.

Phil Cardella, chief financial officer, added: "We are extremely proud to have turned the corner and accomplished the major milestone of an eight-digit revenue figure for the first time in the company's history. The substantial increase in high-margin revenue, coupled with improvements in our working capital, and balance sheet are a testament to the company's innovation and commercial platforms delivering a great portfolio of products and services. We look forward to our own going efforts towards sustainable growth, profitability and self-reliance."

Launch of MyMedi.ca medical cannabis care platform: Launch of MyMedi.ca saw over 96 per cent of active patients from Medical Cannabis by Shoppers business transitioned to the company's new medical cannabis care platform and has since increased its new medical patient base by approximately 10 per cent. The company developed infrastructure to offer insurance reimbursement services for patients through several private insurance providers and public institutions including eight provincial worker safety boards which combined account for over 60 per cent of the platform's revenue.

The integration of MyMedi.ca's platform and patient support programs, improved access, and enhanced education have resulted an 40-per-cent increase of the company's product sales on the platform when compared to the previous quarter.

Canadian commercial advancements: The launch of new proprietary formulations totalling 27 commercially active SKUs (stock-keeping units) in Canada across 131 listings in medical and adult use channel. Access to the company's proprietary medical products improved for patients with availability on new medical platforms such as Canna Farms and Spectrum Therapeutics.

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 and delivering a comprehensive medical cannabis care platform in Canada. Avicanna has an established scientific platform including R&D and clinical development that has led to the commercialization of more than thirty 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 ongoing 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 a 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: 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 features diverse and scientifically curated products from leading Canadian licensed producers in addition to pharmacist-led and bilingual patient support programs with educational resources to facilitate the incorporation of medical cannabis into health care regimens. MyMedi.ca also provides specialty services to distinct patient groups such as veterans and collaborates with public and private providers for adjudication and reimbursement.

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