Ms. Iryna Zheliasko reports
AVICANNA CLOSES NON-BROKERED PRIVATE PLACEMENT RAISING $3.9 MILLION AND ANNOUNCES WARRANT REPRICING
Avicanna Inc. has closed a non-brokered private placement. Under the offering, the company has issued an aggregate of 4,587,022 units at a price of 85 cents per unit for aggregate gross proceeds of approximately $3.9-million.
Each unit is composed of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant is exercisable into one common share in the capital of the company at a price of $1.10 per warrant share for a period of three years from the closing of the offering.
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.
In connection with the closing of the offering, the company paid aggregate finders' fees of approximately $65,000 to eligible finders.
All securities issued under the offering, including securities issuable on exercise thereof, are subject to a hold period expiring four months and one day from the date hereof.
In addition, the company announces the proposed repricing of 1,589,098 common share purchase warrants, expiring Sept. 20, 2024, issued to the lender that advanced the secured term loan in the principal amount of $2,118,000 to the company in August, 2021. The exercise price of the term loan warrants will be repriced from $1.13 to $1.10, being the same exercise price of the warrants issued in connection with the offering.
The offering and the warrant amendment are each 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 Canadian biopharmaceutical company and an established leader in cannabinoid research, development and evidence-based products for the global consumer, medical and pharmaceutical market segments. Avicanna conducts its research in Canada, including its R&D headquarters in the Johnson & Johnson Innovation Centre, JLABS at Toronto, Canada, located in the MaRS discovery district, and in collaboration with leading Canadian academic and medical institutions. Avicanna has established an industry-leading scientific platform including advanced R&D and clinical development, which have led to the commercialization of over 20 products across four main market segments:
RHO Phyto: These medical and wellness products are an advanced line of pharmaceutical-grade cannabis products containing varying ratios of cannabidiol and tetrahydrocannabinol. The product portfolio contains a full formulary of products, including oral, sublingual, topical and transdermal deliveries that have controlled dosing, enhanced absorption and stability studies supported by preclinical data. These products are developed using pharmaceutical drug development processes and are supported with preclinical data. The advanced formulary is marketed with consumer, patient and medical community education and training.
Pura H&W: These registered, clinically tested cosmetic products include a portfolio of functional CBD consumer derma-cosmetic and topical products.
Aureus: As a part of Avicanna's vertical integration based out of Santa Marta, Colombia, its supply chain business units are primarily dedicated to providing a consistent source of cannabinoid raw materials for Avicanna and its global partners' food, cosmetic, medical and pharmaceutical needs. Aureus branded products are cultivated, extracted and manufactured by Avicanna's subsidiaries in Colombia, where they benefit from optimal environmental conditions to produce cannabinoid active pharmaceutical ingredients economically, organically and sustainably and include a range of CBD, THC and rare cannabinoids such as cannabigerol extracts and standardized seeds. The company is well positioned to be a global supplier of cannabinoid raw material demand and has already exported its products to over 10 countries in four continents.
Pharmaceutical pipeline: Leveraging from the company's scientific platform, vertical integration and real-world evidence, Avicanna has established a pipeline of indication specific cannabinoid-based drug candidates that are in various stages of clinical development and commercialization. Avicanna's drug candidates are in a preclinical stage and are dedicated to providing solutions for unmet medical needs in the areas of dermatology, chronic pain and various neurological disorders.
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