Mr. Aras Azadian reports

AVICANNA ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT OF NON-CONVERTIBLE DEBENTURE UNITS

Avicanna Inc. has closed a non-brokered private placement of 2,000 non-convertible debenture units of the company at a price of $1,000 per unit for aggregate gross proceeds of approximately $2-million. Each unit consists of an aggregate of $1,000 principal amount of unsecured non-convertible debentures and 2,000 common share purchase warrants. The debentures will mature one year following the closing of the offering.

"We have made progress, and continue to make progress, in developing, commercializing and optimizing our diversified portfolio of products through various platforms and business units. This financing provides additional working capital and financial flexibility to support our continued growth, strengthening our domestic and international commercial and operational endeavours, and expanding our road map for the future, while at the same time maintaining our focus on operational efficiencies and disciplined capital allocation," stated Aras Azadian, chief executive officer of Avicanna.

The debentures will bear interest at a rate of 13 per cent per annum, payable monthly. Company paid each subscriber a one-time administrative fee equal to 2 per cent of the aggregate principal amount of the debentures subscribed for. Each warrant is exercisable into one common share in the capital of the company at a price of 20 cents per share for a period of three years from the closing of the offering. The company shall have the right at any time and from time to time during the period commencing on the date that is six months from the closing of the offering and the maturity date to repay up to 100 per cent of the principal amount of the then outstanding debentures. The debentures will rank pari passu in right of payment of principal with all other debentures issued under the offering. The debentures will initially be unsecured obligations of the company, and the company has agreed to enter into a general security agreement with the holders of debentures, granting a security interest to secure the obligations of the company under the debentures, on or before the date that is one month following 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.

All securities issued under the offering, including securities issuable on exercise thereof, are subject to a hold period expiring on March 1, 2027.

The offering is 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 international biopharmaceutical company focused on the advancement and commercialization of cannabinoid-based products and formulations for the global medical and pharmaceutical market segments. Avicanna has an established scientific platform, including research and development and clinical development leading to the commercialization of more than 30 proprietary, evidence-based finished products and supporting four commercial-stage business pillars:

• Medical cannabis formulary (RHO Phyto): The formulary offers a diverse range of proprietary products, including oral, sublingual, topical and transdermal deliveries with varying ratios of cannabinoids, supported by continuing patient and medical community education. RHO Phyto is an established brand in Canada currently available nationwide across several channels and expanding into new international markets.
• Medical cannabis care platform (MyMedi.ca): MyMedi.ca is a medical cannabis care platform formed with the aim to better serve medical cannabis patients' needs and enhance the medical cannabis patients' journey. MyMedi.ca is operated by Northern Green Canada Inc. and features a diverse portfolio of products and bilingual pharmacist-led patient support programs. MyMedi.ca also provides specialty services to distinct patient groups such as veterans and collaborates with public and private payers for adjudication and reimbursement. MyMedi.ca provides educational resources to the medical community to facilitate the incorporation of medical cannabis into health care regimens.
• Pharmaceutical pipeline: Leveraging Avicanna's scientific platform, vertical integration and real-world evidence, Avicanna has developed a pipeline of proprietary, indication-specific cannabinoid-based candidates that are in various stages of clinical development. These cannabinoid-based candidates aim to address unmet needs in the areas of dermatology, chronic pain and various neurological disorders.
• Active pharmaceutical ingredients (Aureus Santa Marta): Active pharmaceutical ingredients supplied by the company's majority-owned subsidiary Santa Marta Golden Hemp SAS is a commercial-stage business dedicated to providing various forms of high-quality cannabidiol, tetrahydrocannabinol and cannabigerol to the company's international partners for use in the development and production of food, cosmetics, medical and pharmaceutical products. SMGH also forms part of the company's supply chain, and is a source of reliable input products for its consumer retail, medical cannabis and pharmaceutical products globally.

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