Avicanna Closes Non-Brokered Private Placement Raising $3.9 Million and Announces Warrant Repricing
October 19 2021 - 5:15PM
Avicanna Inc. ("
Avicanna" or the
"
Company") (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN),
a biopharmaceutical company focused on the development,
manufacturing and commercialization of organic and sustainable
plant-derived cannabinoid-based products, is pleased to announce
that it has closed a non-brokered private placement (the
"
Offering"). Under the Offering, the Company has
issued an aggregate of 4,587,022 units (the
"
Units") at a price of CAD$0.85 per Unit for
aggregate gross proceeds of approximately CAD$3.9 million.
Each Unit is comprised of one (1) common share
in the capital of the Company (each, a "Common
Share") and one-half of one (0.5) common share purchase
warrant (each whole warrant, a "Warrant"). Each
Warrant is exercisable into one common share in the capital of the
Company (each, a "Warrant Share") at a price of
CAD$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 finder's 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 (the
“Term Loan Warrants”), expiring September 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 (the “Warrant Amendment”), 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
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 @ 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 has led to the commercialization of over twenty
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 CBD and 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 pre-clinical data. These products are developed using
pharmaceutical drug development processes and are supported with
pre-clinical 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 consistent
source of cannabinoid raw materials for Avicanna and its global
partner’s 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 CBG extracts and standardized seeds. Company is well
positioned to be a global supplier of cannabinoid raw materials
demand and has already successfully exported its products to over
10 countries in 4 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 pre-clinical stage and are dedicated to
providing solutions for unmet medical needs in the areas of
dermatology, chronic pain and various neurological disorders.
SOURCE Avicanna Inc.
Stay Connected
For more information about Avicanna, visit
www.avicanna.com, call 1-647-243-5283, or contact IR representative
Iryna Zheliasko by email at iryna@chfir.com or by phone
at 416-868-1079 x 229.
The Company posts updates through videos from
the official company YouTube
channel https://www.youtube.com/channel/UCFXPBGdKSxOUOf_VZoSFSUA
.
Cautionary Note Regarding
Forward-Looking Information and Statements
This news release contains "forward-looking
information" within the meaning of applicable securities laws.
Forward-looking information contained in this press release may be
identified by the use of words such as, "may", "would", "could",
"will", "likely", "expect", "anticipate", "believe, "intend",
"plan", "forecast", "project", "estimate", "outlook" and other
similar expressions, and includes statements with respect to the
use of proceeds of the Offering. Forward-looking information is not
a guarantee of future performance and is based upon a number of
estimates and assumptions of management in light of management's
experience and perception of trends, current conditions and
expected developments, as well as other factors relevant in the
circumstances, including assumptions in respect of current and
future market conditions, the current and future regulatory
environment; and the availability of licenses, approvals and
permits.
Although the Company believes that the
expectations and assumptions on which such forward-looking
information is based are reasonable, undue reliance should not be
placed on the forward-looking information because the Company can
give no assurance that they will prove to be correct. Actual
results and developments may differ materially from those
contemplated by these statements. Forward-looking information is
subject to a variety of risks and uncertainties that could cause
actual events or results to differ materially from those projected
in the forward-looking information. Such risks and uncertainties
include, but are not limited to current and future market
conditions, including the market price of the common shares of the
Company, and the risk factors set out in the Company's annual
information form dated September 3, 2021 filed with the
Canadian securities regulators and available under the Company's
profile on SEDAR at www.sedar.com.
The statements in this press release are made as
of the date of this release. The Company disclaims any intent or
obligation to update any forward-looking information, whether as a
result of new information, future events or results or otherwise,
other than as required by applicable securities laws.
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