Mr. Aras Azadian reports
AVICANNA REPORTS Q1 2022 FINANCIAL STATEMENT AND MANAGEMENT CHANGE
Avicanna Inc. has filed its interim financial statements for the three-month period ended March 31, 2022, and has transitioned the role of chief financial officer.
"We are pleased to report on our continued progress and global commercialization efforts where we primarily focused on, and achieved, growth of our four brands in the Canadian marketplace. We also pursued continuous optimization of our operations, which was demonstrated by significant cost reductions over the quarter, with the goal of self-sufficiency," stated Aras Azadian, chief executive officer at Avicanna.
First quarter 2022 highlights:
Approximately 35,000 products sold, representing a 41-per-cent increase in sales over last quarter and representing a 765-per-cent increase over Q1 2021; this was driven by a 44-per-cent increase in the number of Canadian product listings over the last quarter across medical and adult-use channels;
Revenue of $1.04-million, representing 283-per-cent increase in revenue over Q1 2021 and one-cent net income per share compared with (14-cent) net loss per share in Q1 2021;
- Continuing cost reduction, resulting in $2-million in selling, general and administrative costs and a 28-per-cent reduction compared with $2.85-million in SG&A costs in Q1 2021;
Entered supply agreement with Chilean-based pharmaceutical company Knop Laboratorios SA to supply Aureus branded products;
Changes to the board and executive team with the appointment of two experienced pharmaceutical executives, Eileen McCormack to the board of directors and Stephen Kim as the chief legal officer;
Commenced epidermolysis bullosa studies with the Hospital for Sick Children; the study led by Dr. Elena Pope is designed to analyze the efficacy of the company's dermatological products on a rare skin disease;
Closed a $2.5-million non-brokered private placement at 35 cents per unit, where each common share would entitle the holder to a half warrant exercisable at 40 cents per share;
Advancements in the pharmaceutical and medical cannabis pipeline, including the completion of the company's first international drug dossier for Trunerox in Brazil and the advancement of several medical cannabis pipeline products including water-soluble formulations.
Other highlights subsequent to Q1 2022:
Entered into exclusive licence and supply agreement with South American-based pharmaceutical company to commercialize up to four of Avicanna's proprietary cannabinoid-based pharmaceutical preparations; Avicanna may possibly earn up to $1.3-million in initial licensing fees through achieving various milestones;
Closed $1.5-million strategic private placement with lead investor Ei Ventures Inc., a technology company which seeks to empower mental wellness through psychoactive compounds, nutraceuticals and technology, and with participation from other investors;
Expanded RHO Phyto formulary with cannabigerol-based (CBG) products into the Canadian market, including oral, sublingual and transdermal formulations, which is anticipated to be made available through various medical and adult-use channels across Canada by third quarter 2022;
Entered importation and distribution agreement with Bio-Gate AG in Germany to expand derma-cosmetics Brand Pura H&W into the European Union; Pura H&W's evidence-based derma-cosmetics portfolio will be commercialized through Bio-Gate's existing distribution channels with initial launches planned for Germany, Austria and Switzerland in second quarter 2022.
Chief financial officer transition
The company has accepted the resignation of its chief financial officer, Dave Sohi, effective May 18, 2022. He will leave to pursue another opportunity and will for a period provide transition advisory services to the company. The company is pleased to announce Phillip Cardella, CPA, CA, to the position of interim chief financial officer, effective May 18, 2022. Previously, Mr. Cardella held the position of senior vice-president of finance at the company, and, prior to joining the company, practised accounting with MNP LLP, one of the largest full-service professional accountancy and business advisory firms in Canada.
"We want to thank Dave for his five years of service, where he helped deliver our common vision into a commercial-stage multinational company and helped weather the many challenges associated with building a company operating in a novel and regulated industry. We wish Dave all the best in his future endeavours," stated Mr. Azadian. "We are also delighted that Phil is able to assume the role of interim CFO with the perspectives of, and familiarity with, the company that only someone that has already been working here can have," continued Mr. Azadian.
About Avicanna Inc.
Avicanna is a commercial-stage international biopharmaceutical company focused on the advancement and commercialization of evidence-based cannabinoid-based products for the global medical and pharmaceutical market segments. Avicanna has an established scientific platform, including research and development and clinical development, that has led to the commercialization of more than 30 products across various market segments:
Medical cannabis and wellness products: Marketed under the RHO Phyto brand, these medical and wellness products are a line of pharmaceutical-grade cannabinoid 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 formulary is marketed with consumer, patient and medical community education and training.
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 look to address 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.
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