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Avicanna Inc
Symbol AVCN
Shares Issued 45,858,596
Close 2022-02-01 C$ 0.44
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Avicanna's Q4 2021 revenue at $1.3-million

2022-02-02 10:25 ET - News Release

Mr. Aras Azadian reports

AVICANNA PROVIDES Q4-2021 RESULTS AND CORPORATE HIGHLIGHTS AS WELL AS FISCAL 2022 GUIDANCE

Avicanna Inc. has provided fourth quarter 2021 results and highlights, as well as fiscal 2022 guidance.

Aras Azadian, chief executive officer, stated: "During 2021 we forged our path within the Canadian market and demonstrated our potential as a biopharmaceutical company with the commercialization of our proprietary wellness and medical products at a global level. We are optimistic about the early commercial success we have attained from our vertical integration which synergistically combines our sustainable input materials with our proprietary formulations to deliver a diverse portfolio of products competitively on the global stage."

Q4 2021 highlights and guidance:

  • Projected record revenue of $1.3-million, representing the fourth consecutive quarter-over-quarter increase of at least 30 per cent;
  • Projected total fiscal 2021 revenue of $3.3-million, representing a 133-per-cent growth from $1.5-million in 2020;
  • 70,000 units of proprietary cannabinoid-based product sold across global channels, representing a 160-per-cent growth from Q3, resulting in 124,000 units during 2021 versus 4,100 units in 2020;
  • A total of 34 cannabis 2.0 product listings across medical and adult-use channels in Canada, signifying an increase of 36 per cent from the Q3 2021;
  • Total of 18 cannabis 2.0 SKUs (stock-keeping units) launched in Canada, through four brands which included the successful launch of Viola and re+PLAY brands during the quarter;
  • Strengthened its position with the Medical Cannabis by Shoppers on-line portal with a total of 12 SKUs available to patients and the medical community by the end of fiscal 2021;
  • The company's international distribution channels also progressed during the quarter with the opening of the company's 14th international market across four continents;
  • The export and commercialization of its CBD skin care line Pura H&W in the United States and its medical cannabis brand RHO Phyto into the Caribbean region.

Two thousand twenty-two strategy and guidance

Two thousand twenty-two is expected to be a pivotal year for the company, where its focus on commercial initiatives through its proprietary medical, wellness, skin care and pharmaceutical products are expected to yield more quantitative milestones across its international commercial channels.

  • Projected $9-million in consolidated revenue from global operations, which is expected to be led by the anticipated sales of approximately 300,000 units of proprietary cannabinoid-based products;
  • Anticipated increase in the number of cannabis 2.0 SKUs across all four brands, coupled with additional listings that are expected to reach 60 by the end of 2022 in Canada;
  • Expected expansion of existing evidence-based products to new medical channels and market share in Canada, motivated by the initial successful outcome of the partnership with Medical Cannabis by Shoppers.

The company is very optimistic about the combination of its market-tested intellectual property with its Latin American operations, which are transforming into a global supply and manufacturing infrastructure for its active pharmaceutical ingredients (API) and finished products. This is further encouraged by the progressive regulations toward medical and pharmaceutical applications of cannabinoid-based products at a global level. It is expected that the company's international operations will achieve significant growth, fortify its brands, achieve operational efficiencies and facilitate new international market entrances, all while advancing commercialization efforts in existing markets:

  • Anticipated marketing authorization and commercialization of its first pharmaceutical preparation into three new international markets;
  • Anticipated expansion of proprietary and evidence-based skin care and wellness topical products into new international markets including the United Kingdom, the European Union and South America;
  • New international markets expected for Aureus branded raw material business units, including its standardized seeds and API, while delivering to existing partners;
  • Projected progression of innovation and advancements of its scientific platform, product pipeline and intellectual property portfolio, which is expected to be further secured with the expected scientific evidence yielded through several clinical collaborations with leading Canadian institutions;
  • Management expected to concentrate on further operational efficiencies and optimization of the company's commercial activities by focusing on strategic and market-tested business models with the aim of achieving self-sufficiency toward the end of 2022.

Guidance webinar

On Feb. 3, 2022. at 11 a.m. EST, the company will be hosting a webinar where CEO Mr. Azadian will be providing further details related to the Q4 2021 and 2022 guidance and expectations. This event will feature a Q&A whereby participants will get an opportunity to submit their inquiries in advance for potential discussion during the event. To join this webinar, please register on-line. For more information or to submit question to the company in advance, please contact Jordan Shafi at CHF Capital Markets.

Correction of error in Jan. 28, 2022, news release

As previously announced in the company's news release dated Jan. 28, 2022, the company closed a non-brokered private placement of convertible debenture units of the company, with each unit consisting of an aggregate of $1,000 principal amount of secured subordinated convertible debentures and 545 common share purchase warrants, at a price of $800 per unit, for aggregate gross proceeds to the company of approximately $1,550,400. There were a total of 1,938 units issued on Jan. 28, 2022, in connection with the offering, rather than 1,626 units as erroneously stated in the closing release.

About Avicanna Inc.

Avicanna is an innovative, commercial-stage and international biopharmaceutical company focused on the development, advancement and commercialization of evidence-based cannabinoid-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, that has led to the commercialization of more than 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 (CBD) and tetrahydrocannabinol (THC). 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, derma-cosmetic products include a portfolio of functional CBD topical products;
  • Pharmaceutical pipeline: Leveraging Avicanna's scientific platform, vertical integration and real-world evidence, Avicanna has created a pipeline of patent-pending drug candidates that 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 and cannabinoid distillates, isolated cannabinoids such as 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 (SMGH), the company's majority-owned subsidiary, which is also good agricultural and collection practices (GACP) certified and has United States Department of Agriculture (USDA) National Organic Program certification for its hemp cultivar.

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