Mr. Michael Porter, a shareholder, reports

AVICANNA ANNOUNCES CLOSING OF STRATEGIC NON-BROKERED PRIVATE PLACEMENT

Avicanna Inc. has closed a strategic non-brokered private placement.

"Having spent my career building and investing in specialty-pharmaceutical and life-sciences platforms, I was impressed by Avicanna's scientific depth, pharmaceutical operating discipline and clear focus on patient outcomes. The company has assembled a differentiated platform spanning proprietary products, clinical and medical capabilities, international supply, and patient-centered commercialization. I am pleased to invest in the company, where I look forward to supporting international commercialization, strategic pharmaceutical partnerships and disciplined long-term value creation," states Michael Porter, founder and managing partner at PG Equity Group I LLC.

The non-brokered private placement offering of 3,333,334 units of the company at a price of 15 cents per unit for aggregate gross proceeds of $500,000. 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 20 cents per share, subject to adjustment in certain events, until Aug 18, 2029.

Mr. Porter is a pharmaceutical executive and investor with more than 25 years of experience across life sciences and private equity. He co-founded and served as chief executive officer of Covis Pharma Group, building it into a top 10 global respiratory company with more than $600-million (U.S.) in annual sales and generating more than $1.5-billion (U.S.) in distributed profit for shareholders. Mr. Porter has led more than 25 life-sciences M&A (merger and acquisition) and strategic transactions and currently serves on several public and private company boards, as well as executive chairman of AltaNova Pharma Group AG.

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. 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 thirty proprietary, evidence-based finished products and supporting four commercial stage business pillars.

• Medical Cannabis Formulary (RHO Phyto): The scientifically backed formulary offers a diverse range of proprietary products including oral, sublingual, topical and transdermal delivery formats with varying ratios of cannabinoids, and release profiles that are supported by continuing patient and medical community education. RHO Phyto is an established brand in Canada currently available nationwide across several channels and expanding into new international markets.
• Medical Cannabis Care Platform (MyMedi.ca): MyMedi.ca is a medical cannabis care platform designed 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 pipeline: Leveraging Avicanna's scientific platform, vertical integration and real-world evidence, Avicanna has developed a pipeline of proprietary, indication-specific cannabinoid-based candidates that are in various stages of clinical development. These cannabinoid-based candidates aim to address unmet needs in the areas of dermatology, chronic pain and various neurological disorders.
• Active Pharmaceutical Ingredients (Aureus Santa Marta): The company's majority-owned subsidiary, Santa Marta Golden Hemp SAS (SMGH), is a commercial-stage business dedicated to providing various forms of high-quality CBD, THC and CBG to the company's international partners for use in the development and production of food, cosmetics, medical, and pharmaceutical products. SMGH 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 globally.

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