Mr. Aras Azadian reports
AVICANNA EXECUTES MULTI YEAR AGREEMENT TO SUPPLY BRAZILIAN PHARMACEUTICAL COMPANY WITH THC AND CBD CANNABIS EXTRACTS
Avicanna Inc.'s majority-owned Colombian subsidiary, Santa Marta Golden Hemp SAS (SMGH), has executed a three-year master supply agreement with a leading Brazilian pharmaceutical company to supply industrial volumes of high-tetrahydrocannabinol and high-cannabidiol full-spectrum psychoactive cannabis resin.
The cannabis extracts will be used in the production of several products that will be registered and commercialized in Brazil through RDC 327/19, which regulates the manufacturing, registration, importation and dispensing of cannabis-derived products.
Fulfilment of purchase orders under the agreement is expected to commence in 2021 for pilot batches. Fulfilment of purchase orders for commercial batches in 2022, based on initial forecasts made by the Brazilian pharmaceutical company pursuant to the agreement, is expected to generate approximately $4-million in revenue for Avicanna.
The cannabis extracts are cultivated, extracted and manufactured by SMGH, pursuant to United States and European pharmacopeia standards, the leading standards for the quality of products that may be used as active pharmaceutical ingredients. SMGH's product offerings include cannabis extracts, isolated cannabidiol, tetrahydrocannabinol and cannabigerol, and standardized seeds, which are marketed under the company's Aureus brand.
Aras Azadian, chief executive officer of Avicanna, commented, "This first-of-its-kind partnership for Avicanna further validates the company's competitive advantages and capability of producing sustainable, standardized and economical source cannabinoid API for our own product pipeline, in addition to supplying our global pharmaceutical partners."
To the knowledge of the company, it carries out its operations in compliance with all applicable laws in the jurisdictions in which it operates.
About Avicanna Inc.
Avicanna is a diversified and vertically integrated Canadian biopharmaceutical company focused on the research, development and commercialization of plant-derived, cannabinoid-based products for the global consumer, medical and pharmaceutical market segments.
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