Mr. Aras Azadian reports
AVICANNA ANNOUNCES FILING OF INTERIM FINANCIAL STATEMENTS FOR THE THREE-MONTH PERIOD ENDING SEPTEMBER 30, 2021, DEMONSTRATING PROGRESSIVE COMMERCIALIZATION RESULTS
Avicanna Inc. has filed the company's third quarter financial statements, and has provided financial and corporate highlights.
"We are proud to present the meaningful progress we have made across all divisions in what is evidently our most successful quarter to date. We have evolved the organization from R&D stage to a rapidly expanding and truly global commercial-stage company with several business units now generating revenue across several markets. We have successfully established a strong footprint with our proprietary cannabis formulations in Canada across three channels, including medical, clinical and adult use, which is attributed to our scientific platform and evidence-based non-inhalation products. We continued to innovate, enhanced our intellectual property and progressed our pharmaceutical pipeline. Finally, we advanced our global business model by opening our 12th market and more importantly have successfully connected our proprietary formulations with our low-cost API and manufacturing infrastructure in Colombia to deliver advanced products to the global marketplace," commented Aras Azadian, chief executive officer, Avicanna.
Third quarter financial highlights
Gross revenue in the third quarter increased to $1,007,033 ($987,967 net) from $810,299 in the second quarter, and $279,515 in the first quarter of 2021, representing an increase of 24 per cent over the second quarter and 260 per cent over the first quarter revenues. The reported revenue represents cannabis-only sales with majority being new or recurring orders from proprietary finished products in the Canadian medical and adult-use channels.
The company delivered 27,041 units of its cannabis 2.0 products branded as RHO Phyto and Pura Earth, compared with 16,767 units in the second and 8,855 units in the first quarter of 2021, representing a growth of 61 per cent over the second quarter and 205 per cent over the first quarter of 2021.
Loss per share for the nine months ended Sept. 30, 2021, was 29 cents per share, compared with a loss of 82 cents per share for the nine-month period ending Sept. 30, 2020, representing an improvement of 64 per cent from the same period in the previous year.
By the end of the third quarter, the company had a total of 25 product listings across medical and adult-use channels in Canada, compared with 17 in the second quarter and six in the first quarter of 2021, representing an increase of 96 per cent over the second quarter and 316 per cent over the first quarter of 2021.
Other strategic highlights during and subsequent to the third quarter
Entrance into new global markets and expansion of Aureus-branded products with exports of high-CBD (cannabidiol) and THC (tetrahydrocannabinol) cannabis extracts to Austria, Peru and Brazil, reaching a total of 11 countries across four continents.
Multiyear supply agreement with a Brazilian pharmaceutical company to supply industrial volumes of high-THC and high-CBD full spectrum cannabis extracts. The company is expecting revenue of up to $4-million in fiscal 2022 from this agreement.
Filing of a U.S. patent application for a novel cannabinoid formulation for reducing incidence of seizures and sudden unexpected death in epilepsy. Research findings originated from cannabinoid-based collaborations with leading epilepsy researcher, Dr. Peter Carlen, at University Health Network (UHN). Avicanna's proprietary formulation showed promising preclinical results in reducing seizures and will continue to undergo preclinical and clinical development as a potential drug candidate.
Non-brokered private placement at a premium to the market price (at the time of close), issuing 4,587,022 common share units at a price of 85 cents per unit for gross proceeds of $3,898,969.
The Canadian launch of Viola-branded products in partnership with Medical Cannabis by Shoppers. Through this partnership, Canadian medical and adult-use consumers will have access to products by the equity-focused brand for the first time.
Santa Marta Golden Hemp SAS (SMGH), the company's majority owned subsidiary, met global conformity standards of good agricultural and collection practice (GACP), an international guide set forth by the European Medicines Agency. The certification will allow for the expansion of the company's raw materials supply business to include organic and now GACP certified dried flower and biomass globally.
Conference call details
Date: Nov. 12, 2021
Time: 8:30 a.m. Eastern Time
Avicanna is a Canadian commercial-stage biopharmaceutical company established in cannabinoid research, development and evidence-based products for the global consumer, as well as medical and pharmaceutical market segments. In leading global cannabinoid advancements, Avicanna conducts most of its research in Canada at its research and development headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto, located in the MaRS Discovery District. The company actively collaborates with leading Canadian academic and medical institutions. Avicanna has established an industry-leading scientific platform, including advanced R&D and clinical development, which has led to the commercialization of over 20 products across four main market segments:
Medical cannabis and wellness products: Marketed under the RHO Phyto brand, or Magisterial Preparations, 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. The advanced formulary is marketed with consumer, patient and medical community education and training. Avicanna's medical and wellness product portfolio also forms the foundation of the company's pharmaceutical pipeline with the contribution of the formulations that form the basis of the products as well as the data generated from sales and participation of the products in real-world evidence studies.
- CBD derma-cosmetic products: Marketed under the Pura H&W or Pura Earth brands, these registered, clinically tested, dermacosmetic products include a portfolio of functional CBD topical products.
Pharmaceuticals: Leveraging Avicanna's scientific platform, vertical integration and real-world evidence, Avicanna has created a pipeline of patent-pending drug candidates which are indication-specific, and in various stages of clinical development and commercialization. These cannabinoid-based drug candidates provide solutions for 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.
- Cannabis raw materials, seeds and bulk formulations: Marketed under the Aureus brand, the company's raw material business has successfully completed sales to 11 countries. Aureus offers cannabis dried flower, standardized seeds, full spectrum extracts, cannabinoid distillates, isolated cannabinoids (CBD, THC, cannabigerol (CBG) and other rare cannabinoids) and bulk formulations derived from hemp and cannabis cultivars through its sustainable, economical and industrial-scale subsidiaries based in Colombia. The majority of the Aureus products are produced at Santa Marta Golden Hemp SAS, the company's majority-owned subsidiary, which is also good agricultural and collection practices certified, and has United States Department of Agriculture National Organic Program certification for its hemp cultivar.
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