Mr. Aras Azadian reports

AVICANNA ANNOUNCES SUPPLY AND LICENSING AGREEMENT WITH MULTINATIONAL PHARMACEUTICAL COMPANY

Avicanna Inc. has entered into an exclusive supply agreement for two of the company's proprietary topical products with a multinational pharmaceutical company (Pharma).

"We look forward to expanding our proprietary topical products into the European region and to be doing so through the utilization of our own international infrastructure for manufacturing. We are confident that, through this strategic relationship and the Pharma's established commercial infrastructure, we can facilitate the expansion of our proprietary products into several international markets," stated Aras Azadian, chief executive officer.

Pharma manufactures and markets a wide range of pharmaceuticals across four continents and has established commercial infrastructure in the European region that will be utilized for the initial launch of the selected products. Pharma has committed to launch the initial products in six European countries during 2024, with expectations of expanding throughout the region shortly after. Avicanna will be earning licensing fees associated to specific milestones, and the parties have also agreed to specific minimum order quantities and efforts for Pharma to maintain the exclusivity.

The exclusive supply agreement is for the company's proprietary topical products that have been commercialized in the Canadian market under the RHO Phyto brand across several medical cannabis platforms, including MyMedi.ca.

Products selected:

• The Ultra-CBD cream is a 3 per cent CBD (cannabidiol) localized cream developed to target dermatology conditions. The cream is enrolled in previously announced observational real-world evidence clinical trial with the Hospital for Sick Children, related to epidermolysis bullosa.
• The CBG Transdermal Gel is a 2 per cent CBD and 0.5 per cent CBG (cannabigerol) gel developed to target local inflammatory and pain conditions. The gel is enrolled in previously announced observational real-world evidence clinical trial on musculoskeletal pain and inflammation.

The products have completed dossiers, and will be registered and commercialized under applicable cosmetics legislation, providing a route to market with the expected launch during the first half of 2024. The products will be manufactured using the company's Colombian operations, while utilizing Avicanna's own source of cannabinoids from majority owned subsidiary, Santa Marta Golden Hemp SAS.

Additionally, the two companies have entered into a separate right of first refusal agreement related to the company's SEDDS (self-emulsifying drug delivery systems) technology capsules for the same region.

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; 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.

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