Mr. Aras Azadian reports

AVICANNA ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT

Avicanna Inc. has closed a non-brokered private placement offering of 5,313,959 units of the company at a price of 40 cents per unit for aggregate gross proceeds of approximately of $2,125,000.

"We are very grateful to have the continued confidence of our shareholders and to have completed this financing at a very exciting time for the company. We are confident that this financing sets us on the path to deliver on our expansion and commercialization plans and to move towards achieving self-sufficiency during this year," stated Aras Azadian, chief executive officer.

The company intends to use the proceeds from the offering for general working capital purposes, general and administrative expenses, expenditures related to production and manufacturing, and research and clinical development.

Each unit comprises one common share in the capital of the company and one-half of one common share purchase warrant of the company, and each warrant shall entitle the holder thereof to acquire one common share in the capital of the company at an exercise price of 55 cents per share, subject to adjustment in certain events, until April 18, 2027. The company has paid an aggregate total of $31,499.98 in cash finders' fees and issued an aggregate total of 78,750 finders' warrants in connection with the offering to certain finders in connection with subscriptions for units made by purchasers introduced to the company by such finders. Each finder's warrant entitles the holder thereof to acquire one common share in the capital of the company at an exercise price of 55 cents per share, subject to adjustment in certain events, until April 18, 2027.

The unit shares and warrants, and any securities issuable upon conversion or exercise thereof, are subject to a four-month hold period under applicable securities laws in Canada. The offering is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.

About Avicanna Inc.

Avicanna is a commercial-stage international biopharmaceutical company focused on the advancement and commercialization of cannabinoid-based products and formulations for the global medical and pharmaceutical market segments. Avicanna has an established scientific platform, including R&D (research and development) and clinical development leading to the commercialization of more than 30 proprietary, evidence-based finished products and supporting four commercial stage business pillars.

Medical cannabis formulary (RHO Phyto): The formulary offers a diverse range of proprietary products, including oral, sublingual, topical and transdermal deliveries, with varying ratios of cannabinoids, supported by continuing patient and medical community education. RHO Phyto is an established leading medical brand in Canada currently available nationwide to patients across several medical channels and continues to expand into new international markets.

Medical cannabis care platform (MyMedi.ca): MyMedi.ca is a medical cannabis care platform formed with the aim to better serve medical cannabis patients' needs and enhance the patient journey. MyMedi.ca is operated by Northern Green Canada Inc. and features a diverse portfolio of products and bilingual pharmacist-led patient support programs. MyMedi.ca also provides specialty services to distinct patient groups such as veterans and collaborates with public and private payers for adjudication and reimbursement. MyMedi.ca provides educational resources to the medical community to facilitate the incorporation of medical cannabis into health care regimens.

Pharmaceutical products (Trunerox) and pipeline: Leveraging Avicanna's scientific platform, vertical integration and real-world evidence, Avicanna has developed a pipeline of proprietary, indication-specific pharmaceutical products that are in various stages of clinical development and commercialization. These cannabinoid-based drug candidates aim to address unmet medical needs in the areas of dermatology, chronic pain and various neurological disorders. Avicanna's first indication-specific pharmaceutical drug, Trunerox, was approved Q1 2024 by the Health Authority of Colombia INVIMA as an adjuvant treatment for seizures associated with Lennox-Gastaut syndrome and Dravet syndrome.

Active pharmaceutical ingredients (Aureus Santa Marta): Active pharmaceutical ingredients (API) supplied by the company's majority owned subsidiary Santa Marta Golden Hemp SAS (SMGH) is a commercial-stage business dedicated to providing a various forms high-quality CBD (cannabidiol), THC (tetrahydrocannabinol) and CBG (cannabigerol) to the company's international partners for use in the development and production of food, cosmetics, medical and pharmaceutical products. The business unit also forms part of the company's supply chain and is a source of reliable input products for its consumer retail, medical cannabis and pharmaceutical products for globally.

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