Avicanna Inc. (“Avicanna” or the “Company “) (TSX: AVCN) (OTCQX:
AVCNF) (FSE: 0NN), an innovative, commercial-stage, and
international biopharmaceutical company focused on the development,
advancement, and commercialization of evidence-based,
cannabinoid-based products, is pleased to provide fourth quarter
2021 results and highlights, as well as fiscal 2022 guidance.
Aras Azadian, CEO 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 $1.3M, representing the fourth consecutive quarter over
quarter increase of at least 30%.
- Projected total
fiscal 2021 revenue of $3.3M, representing a 133% growth from $1.5M
in 2020.
- 70,000 units of
proprietary cannabinoid-based product sold across global channels,
representing a 160% growth from Q3, resulting in124,000 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% from the
Q3-21.
- Total of 18
“cannabis 2.0” SKUs 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™ online 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.
2022 Strategy and Guidance
2022 is expected to be a pivotal year for the
Company, where it’s focus on commercial initiatives through its
proprietary medical, wellness, skincare and pharmaceutical products
are expected to yield more quantitative milestones across its
international commercial channels.
- Projected $9M 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 towards 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 skincare and wellness
topical products into new international markets including the
United Kingdom, 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 towards the end of 2022.
Guidance webinar
On February 3rd, 2022 at 11:00m EST, the Company
will be hosting a webinar where CEO, Aras Azadian will be providing
further details related to the Q4-21 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 here. For more information or to submit
question to the Company in advance, please contact Jordan Shafi at
CHF Capital Markets.
Correction of Error in January 28, 2022
News Release
As previously announced in the Company’s news
release dated January 28, 2022 (the “Closing
Release”), the Company closed a non-brokered private
placement (the “Offering”) of convertible
debenture units of the Company (the “Units”), 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 January 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 R&D 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 twenty products across four main market segments:
- Medical Cannabis
& 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 pre-clinical 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 S.A.S. (“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.
SOURCE Avicanna Inc.
Stay Connected
For more information about Avicanna, visit www.avicanna.com,
contact Ivana Maric by email at info@avicanna.com or follow us on
social media on LinkedIn, Twitter, Facebook or Instagram.
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 news 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. Forward-looking information contained in this
news release includes, without limitation, statements related to
anticipated financial and/or operational results and outlook,
including projected revenues, projected sales growth, anticipated
expansion of product listings, the Company’s anticipated
application of its products, projected growth, anticipated
geographical expansion, receipt of authorizations and regulatory
approvals, success of clinical trials, scientific advancements and
developments, successful commercialization of products, the
Company’s priorities, goals and strategies, industry trends and
their anticipated impact, the anticipated impact of current market
conditions on each of our segments and near term expectations,
components and supply chain constraints, and the Company’s
financial statement estimates and assumptions. 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, the availability of licenses, approvals and
permits, and the utility and potential application of certain
drugs, cannabinoids, compounds and products. 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 and final short form
prospectus dated November 27, 2020, filed with the Canadian
securities regulators and available under the Company's profile on
SEDAR at www.sedar.com. The statements in this news 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.
Future-oriented financial information
Financial outlook and future-oriented financial
information contained in this news release about prospective
financial performance, financial position or revenue is based on
assumptions about future events, including economic conditions and
proposed courses of action, based on management’s assessment of the
relevant information currently available. In particular, this
presentation contains 2022 financial outlook information for the
Company, including expected revenue. These projections contain
forward-looking information and are based on a number of material
assumptions and factors set out above and are provided to give the
reader a better understanding of the potential future performance
of the Company in certain areas. Actual results may differ
significantly from the projections presented herein. These
projections may also be considered to contain future oriented
financial information or a financial outlook. The actual results of
the Company’s operations for any period will likely vary from the
amounts set forth in these projections, and such variations may be
material. See above together with the “Risk Factors” set out in the
Company's annual information form dated September 3, 2021 and final
short form prospectus dated November 27, 2020, filed with the
Canadian securities regulators and available under the Company's
profile on SEDAR at www.sedar.com for a further discussion of the
risks that could cause actual results to vary. Readers are
cautioned that any such financial outlook and future-oriented
financial information contained herein should not be used for
purposes other than those for which it is disclosed herein.
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