Today’s Top Marijuana Stock News: Surterra’s $65M Raise, GTI’s CEO Departure, Avicanna And Daabon

A Capital Raise

Surterra Wellness closed a $65 million round of Series C fundraising to bring the firm’s total capital raised above $100 million. Management will apply the funds toward strategic initiatives in Florida and Texas, including construction of a cultivation space, partnership pursuits and clinical trials for cannabis-based therapies.

Surterra also added to the board Beau Wrigley Jr., current president of Wychwood Asset Management and former head of Wrigley Company.

“We believe in the ability of cannabis to improve quality of life for patients across the country, and we are excited to build a global industry leader for the long term,” Wrigley said in a statement. He led the recent funding round.

A Deal

Benzinga learned about a new multimillion-dollar deal in Colombia: Avicanna Inc. and El Grupo Daabon have entered into joint venture to cultivate and process cannabis.

An Executive Departure

Green Thumb Industries Inc (CNSX: GTII)GTBIF 2.83% CEO Peter Kadens will hand over the reins to Ben Kovler, the firm’s founder and chairman, Aug. 29.

“Pete now plans to step back from his day-to-day responsibilities as CEO to concentrate on his true passion – philanthropy and social justice for the communities that have been impacted by the war on drugs,” Kovler said in a statement.

Kadens, who stepped down for personal and family reasons, will stay on as a board member.

Daabon Strikes Deal With Avicanna, Becoming The Largest Agro Company To Enter The Cannabis Industry

A few months ago, Benzinga visited several countries in South America and subsequently published an article explaining why cannabis investors’ interest in the region, especially in Colombia, was about to spike.

In the weeks that followed, numerous U.S. and Canada-based marijuana companies announced deals to enter the Colombian market, with Aphria Inc APHQF spending almost $200 million and Canopy Growth Corp CGC 11.6% dropping close to $100 million.

On Monday, Benzinga learned about a new multimillion-dollar deal in Colombia: Avicanna Inc.,the first and only cannabidiol company to be accepted into Johnson & Johnson JNJ 0.64%’s JLABS @ Toronto, and El Grupo Daabon, the largest organic agriculture company in South America, in operation for more than 100 years, have entered into joint venture to cultivate and process cannabis.

Per the agreement, Avicanna acquired a 60-percent controlling stake in the Colombian entity Santa Marta Golden Hemp S.A.S., holder of “a full suite of medical cannabis licenses in Colombia.” In exchange, Avicanna granted Daabon 1,477,818 common shares, providing it with an 11.2-percent interest in the Canada-based company.

The Details

Santa Marta Golden Hemp’s licensed facility is situated on a 16-hectare parcel of land on the Caribbean coast near the city of Santa Marta. Avicanna says the deal  allows them to expand up to 15,000 hectares.

“Grupo Daabon and Avicanna will be combining resources and expertise including Avicanna’s leadership in research and biotechnological developments in the cannabinoid sector and Daabon’s global leadership within the agricultural industry of industrial scale organic cultivation, processing and distribution,” said Avicanna CEO Aras Azadian.

The partnership combines a leading Canadian biotech working in cannabinoid research and product development with the world’s largest organic agricultural enterprise, said Lucas Nosiglia, executive vice president of Avicanna and president of Avicanna LATAM.

Grupo Daabon is a family-owned business founded in 1914. The company has said it generates billions in revenue each year. With more than 3,000 employees and operations across four continents, Daabon is the largest organic agriculture company in South America.

Avicanna said the partnership with Daabon provides it with:

  • Access to a sustainable, and environmentally responsible agricultural business and expertise with over 15,000 hectares certified for organic cultivation.
  • The potential for the development of an industrial-scale extraction plant in line with Daabon’s current palm oil processing plant, which has the largest capacity in the Americas.
  • Enhanced infrastructure, and access to duty-free zones controlled by Daabon.

Disclosure: Avicanna is a sponsor of Benzinga’s upcoming Cannabis Capital Conference.

Photo of Avicanna LATAM’s Colombian facility by Javier Hasse.

A Biotech Exec Turned Cannabis Entrepreneur Predicts A “Separation” Of Medical And Recreational Cannabis Companies

Cannabis investors can’t afford to miss the Benzinga Cannabis Capital Conference, a premier gathering of investors and entrepreneurs painting an honest picture of the opportunities and challenges in cannabis investing. Space is limited—get your tickets before they sell out.

Ahead of the conference, we’re interviewing the speakers who will deliver key insights on the cannabis space at the BZ Cannabis Capital Conference. This installment features Avicanna CEO Aras Azadian.

Quickly give us your background—why are you passionate about cannabis?
I have been working as a biotech executive for the last 8 years and was fascinated by the medical aspects of cannabis and its potential efficacy in a range of medical indications. I believe we are just starting to scratch the surface on the potential role of cannabinoids as medicine and our team is motivated to be a contributing factor in its discovery.

What is the most exciting opportunity in the cannabis space right now
Medical and healthcare applications! Being a Canadian biotechnology company allows us to do federally approved clinical studies that allows to develop more optimized and consistent products with respect to specific indications whether that is dermatology or pain management.

There are still massive challenges for the nascent cannabis space to overcome—what is the most pressing of those challenges?
Convincing the medical community that for particular indications cannabinoid medication should be the first treatment option, that will only take place once the appropriate data and evidence is present

How should the industry advocate for a cannabis regulatory framework that will allow for safe, sustainable growth?
Within countries that allow clinical development such as Canada, further support and more clear legislation that allows for comprehensive clinical studies. From a recreational perspective, appropriate dosing limitations and warning for products such as the ingestible products

What big surprises do you predict occurring in cannabis in the next three years? Will a big legacy tobacco or alcohol incumbent invest in the space, or something else remarkable?
As the industry matures we will see further separation between recreational and medical companies, I believe that we will start seeing other life sciences and pharmaceutical giants taking larger leaps into the space, which will include big pharma, cosmetic giants and other life-sciences companies.

Any other thoughts?
We are truly living in exciting times and in perhaps the most exciting industry of this century, we are looking forward to being in the future of this industry and contributing to its maturity

Should you prescribe cannabis?

As a pain specialist, I’m asked for cannabis every day, which has forced me to learn all I can about this drug. As a result, I’m able to help my patients benefit from cannabis and reduce its risks. I believe all physicians have a duty to do the same.

The lack of science and evidence around cannabis is very real, and very important to point out. With legalization, we’re clearly heading into murky waters — but let’s realize we’re here because 75 percent of our population has said cannabis should be de-criminalized and should be a medicine.It’s not fair for us to bury our heads in the sand and refuse to prescribe it
or even discuss it with patients.

Over eight years ago, a patient of mine had a skiing accident. She had been on opioids and anti-depressants for persistent neuropathic pain, until she discovered cannabis — without the help of physicians. She confided in me that two to three puffs of a joint morning, noon and night controlled her pain without severe side effects. This became the sole ‘medication’ she relied upon to enable functioning in her daily life.

There’s nothing surprising here. Pain is a condition which results in a hyper-excitable nervous system: your nerves have gone haywire; they’re firing constantly. None of the medications in this space — such as opioids or anti-inflammatories — do a great job of calming that nervous system, but cannabis certainly is a medication that globally reduces CNS hyper-excitability. But people need to understand the dosing: the analgesic effects typically occur with just two or three puffs.

And that lack of understanding — or the refusal by too many physicians to educate themselves — is a big part of the reason cannabis has a bad name. Given that many doctors are even less educated than some of our patients regarding the cannabis industry and the rudimentary science to date, our misconceptions about its dangers often lead them to send patients down the wrong path. How does that square with the Hippocratic Oath?

For example, many physicians who are anti-smoking send patients to the oils (the most profitable cannabis sector). But it can be harder to get a standardized experience with oils because some companies’ oils are de-carboxylated to a greater degree than others and not consistent. Each lot could be completely different from a physiological standpoint. Furthermore, some physicians will tell pain patients only to use the non-psychotropic CBD in oil form. But that can cost anywhere from $120 to $160 for a bottle, and they may eventually need several bottles per month. And despite all of that money, many of my neuropathic pain patients often tell me that they’re not getting much effect from CBD alone.

I do tend to direct my patients initially towards vaporizing instead of smoking or oils. We know it works, and we’ll know more about the safety profile of vaping over the next few years — but for now, it does seem like a better choice than smoking. Over time the oils will become more reliable as the industry and the science matures. I also tell naive patients to start with a product containing less than 10 per cent of THC. So many middle-aged people walk into a dispensary because they want to treat a pain condition and pick up a product that’s 26 per cent THC. Then they get uncomfortably high because when they were teenagers they smoked pot that likely contained around four per cent THC.

Currently, I absolutely steer patients away from edibles. Someone can take an edible and within ten minutes they feel nothing so they take another and another. Forty minutes later, when the high hits them like a ton of bricks, they could be driving on the highway. Let’s avoid setting patients up for failure: Start with what we know and where we have credible scientific data to date, which is in the inhalational dosage form. That’s what people have been consuming for centuries. I understand the distrust around cannabis. We have put a medical lens around a recreational drug, and it’s often an awkward fit. And we have moved too fast to create an industry, unfortunately run by venture capitalists. But the science will catch up. And in the meantime, we have millions of people who are going to be using cannabis whether we like it or not.

As doctors, we like to be right all of the time. We always must stand behind on evidence and science. But despite the lack of answers, this drug has been thrust into our wheel house. So let’s do right by our patients and make every effort to educate ourselves about it — and talk to our patients about it in useful, non-judgemental ways. •

Dr. Clarke is a professor in the Department of Anesthesiology and Medical Director of the Pain Research Unit and Transitional Pain Service at Toronto General Hospital. He has consulted with Scientus Pharma and Avicanna Inc. to research and development companies within the medical cannabis industry.[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/2″][tm_image image=”4789″][tm_spacer size=”xs:5;sm:5;md:5;lg:25″][vc_column_text]The majority of my patients asking for cannabis are trying to treat anxiety, depression or insomnia. That’s why I won’t prescribe it — I won’t be a party to self-medicating with unregulated, understudied drugs. Not when there are effective, evidence-based treatments for all of these complaints.

Putting the word “medical” in front of marijuana doesn’t make it so. In the Wild West that is the prescription pot landscape right now, a doctor’s signature doesn’t confer legitimacy. We don’t know the intended effect, the right dose, what strain of cannabis to use for which condition, the contraindications or the side effect profile. All we have are some anecdotal reports from people who found personal benefit from using pot.

Not to mention a lot of people’s conceptions of marijuana are based on their own recreational use as teenagers, when it was a pretty benign substance. Nowadays, it’s much more psychotropic, and we don’t know if it could contribute to the onset of schizophrenia, exacerbation of anxiety or onset of depression.

If someone is in pain, I’ll offer the traditional treatments because these are backed by evidence and we know their risks and benefits. Sure, there’s a case for cannabis as an alternative to opioids for a minority of chronic pain sufferers and a few other exceptions. But in my internal medicine practice, I’ve found the vast majority pushing for pot need something else entirely.

And that’s where the problem comes in. Most physicians have heavy caseloads and busy waiting rooms. We don’t always have enough time
to dig deeper, to find out why a patient is suddenly not sleeping well, or to get them to open up about a lifetime of social anxiety. And our current OHIP funding structure doesn’t encourage much psycho-social counselling in the ambulatory environment.

Still, with a little dialogue, I quickly find that psychological counselling using Cognitive Behavioral Therapy, or support for the underlying root problem is what my patients really need. Not everyone is happy to hear that message, which makes me the bad guy when I have to say no. Talk therapy works, but it’s a whole lot less pleasant than getting high.

Then there are the people who want to legitimize their recreational use and get their prescriptions paid by supplemental insurance. It’s a lot like needing two glasses of scotch at the end of the day to unwind — if you got your scotch for free. Are those the patients we want filling up doctors’ offices?

I’m not taking a stand on whether cannabis should be legal for recreational use. But because of the lack of evidence around its risks and benefits, it doesn’t fit into the medical model. Just like physicians shouldn’t be forced to write sick notes for employers, and we aren’t in the business of doling out doses of scotch, we shouldn’t be forced to confer fake legitimacy on marijuana as a medical treatment. Until there’s enough credible evidence that cannabis is medicine, and as long as I have other good options, I won’t be prescribing it. •

Dr. Bonta is a Clinician Educator in the Department of Medicine and a specialist in General Internal Medicine at Toronto General Hospital.

Avicanna Inc. Proudly Hosts the “International Symposium on Cannabinoids & Medical Applications”

TORONTO, May 18, 2018 /PRNewswire/ – Avicanna Inc., (“Avicanna”) a Canadian biotechnology company focused on medical applications of cannabinoids, is proud to announce that on May 18, 2018, it will be hosting the “International Symposium on Cannabinoids and Medical Applications” in conjunction with the University of Magdalena (the “Symposium”). At the Symposium, guests will hear experienced Canadian, Colombian and other international healthcare professionals and scientists lead discussions on cannabinoid research, patient responses to cannabis treatment, advanced indication-specific medical applications, and emerging clinical data in this field.

 

Avicanna’s goal of the Symposium is to increase awareness of the current research being conducted on the medical benefits of cannabis and to foster meaningful clinical partnerships between leading Colombian and Canadian medical institutions and clinicians to advance medical cannabis research. Avicanna also hopes that the Symposium will assist in further educating the Colombian healthcare community on the evolving treatment possibilities of medical cannabis. Research is beginning to unveil that medical cannabis is potentially an effective treatment option for several major medical specialties such as pain management, oncology, neurology and dermatology.

“We strive to share with the Colombian people, and the Colombian healthcare community, the knowledge, experience and technologies that we have developed over the previous years through our own research efforts and through the efforts of the Canadian cannabis industry as a whole.”
–Aras Azadian, CEO of Avicanna.

Discussions will be led by international clinicians and scientists from prestigious academic and clinical research organizations including the University of Toronto (“UofT”), the University Health Network (“UHN”), the Toronto General Hospital (“TGH”), the Princess Margaret Cancer Center (“Princess Margaret”), the Hospital for Sick Children (“SickKids”), San Jose Hospital, Bogota and the University of the West Indies, Jamaica.

The topics of discussion will include:

  • Introduction to Cannabinoids – Samantha Watt, MSc. (Avicanna)
  • Pharmacology of Cannabinoids – Dr. Adriana Carrillo, MD., MSc. (Avicanna)
  • Smoke, Mirrors and the Medicine in Medicinal Cannabis – Dr. Lakshmi Kotra, PhD. (UHN)
  • Canadian Patient Experience with Medical Cannabis – Dr. Nimish Purohit, MBBS, DPM MRCPsych (Entourage Clinic)
  • Cannabinoid Delivery Mechanisms and Formulations – Dr. Satish Asotra, PhD MBA (Avicanna)
  • Advanced Formulation and Administration of Cannabinoids – Dr. Frantz Le Dévédec, PhD (UofT)
  • Use of cannabinoids in palliative care – Tatiana Gonzalez (Univesidad del Magdalena)
  • Cannabis Industrial Development in Colombia and its Health Applications – Dr. Andrés López (National Narcotic Fund, Colombia)
  • Role of Cannabinoids in Pain Management – Dr. Hance Clarke MD, PhD. (TGH)
  • Epilepsy and Cannabidiol – Dr. Amza Ali, PhD MBA (Carribean Epilepsy Society)
  • Cannabis and Cancer Care: Current and Emerging Therapies – Dr. Justin Grant, PhD MBA (Princess Margaret)
  • Potential Role of Cannabidiol in Promoting Wound Healing in Patients with Epidermolysis Bullosa – Dr. Elena Pope MR, MSc, FRCPC (SickKids )
  • Acne and Cannabidiol Dr. Irene Lara-Corrales MD (SickKids)
  • Cannabinoids and Eczema – Dr. Mauricio Torres-Pradilla, PhD (Hospital de San Jose, F.U.C.S.)
  • Cannabidiol and Animal Health – Dr. Saeid Babaei, PhD MBA (AbCelex Technologies)
  • Medicinal Cannabis Use: Moving Towards a New Drug Policy – Juan Manuel Galán, Senator of Colombia

About Avicanna:
Avicanna Inc. is a biotechnology company focused on innovative product development and advanced clinical research in the medical cannabis industry and is currently headquartered in JLABS @ Toronto (Canada). Capitalizing on the progressive development of its proprietary brand Pura Elements™, Avicanna is focused on building an international distribution network through the use of strategic licensing models. Utilizing the experience of its senior scientists and executive board, and the support of its clinical and academic partners in the University of Toronto and the University Health Network, Avicanna strives to be at the forefront of advancements in the global medical cannabis industry. Avicanna is focused on providing cannabinoid-based therapies that are both clinically supported and medically approved. Though based in Toronto, Avicanna has a strong presence in the Republic of Colombia through its majority owned subsidiary Sativa Nativa S.A.S. Sativa Nativa currently holds federally issued licenses to cultivate both psychoactive and non-psychoactive cannabis in Colombia.

Stay Connected
For more information about Avicanna Inc., visit www.avicanna.com, or email info@avicanna.com.

Forward-Looking Information
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: (i) the ability to consummate transactions which are currently in discussions, (ii) requirements to obtain additional financing, (iii) potential effective indication specific treatment benefits of medical cannabis (iv) regulatory or political change in Colombia, Latin America, United States of America or Canada, (v) competition and other risks affecting Avicanna, in particular, and the medical cannabis industry generally. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Avicanna is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Avicanna Inc. Announces its Subsidiary Has Obtained Medical Cannabis Licenses in Colombia

TORONTO, Feb. 2, 2018 /PRNewswire/ – Avicanna Inc. (“Avicanna“) is pleased to announce that its Colombian subsidiary Sativa Nativa S.A.S. (“Sativa Nativa“) has been issued a psychoactive cannabis Cultivation license and a cannabis Derivatives Processing and Manufacturing license (collectively the “Licenses“) by the Colombian Ministry of Justice and Ministry of Health.

Sativa Nativa, located in Santa Marta, Colombia, is positioning itself to become a leader in the Latin American medical cannabis industry. Santa Marta offers an ideal location to cultivate cannabis due to its tropical climate complete with year-round 12 hour days of sunlight. These weather conditions can lead to significant cost advantages compared with cannabis grown in less hospitable climates such as Canada or Europe. With a team of cultivation and genetic specialists, including its founders Sergio Puerta and Jose Rafael Lopez, Sativa Nativa is in a strong position to excel in the Latin American cannabis industry. Leveraging the support of Avicanna’s senior scientific and executive teams, Sativa Nativa will have access to strategic know-how and proprietary advancements applicable to all phases of the cannabis growing process, including cultivation, analysis, extraction, and manufacturing. Avicanna will also aim to implement industry best practices while maintaining Good Manufacturing Practices (“GMP”) and Standard Operating Procedures (“SOP”) at Sativa Nativa’s facilities in Colombia. In addition, Sativa Nativa has been granted an exclusive license to produce, manufacture and distribute Avicanna’s proprietary brand of Pura Elements™ products within Colombia. As an Avicanna subsidiary, Sativa Nativa also has access to export opportunities through Avicanna’s global distribution network.

With over 30 years of combined experience in commercial scale cultivation and genetic development, Sativa Nativa’s founders provide a rare level of sophistication and experience in the emergent cannabis industry.

“Our sustainable cultivation practices focus on the biodynamic and organic production of cannabis, and working with the Avicanna team, we will focus on compliance with the highest global standards in each stage of production. We look forward to offering advanced medical cannabis solutions to the Colombian medical community.”

– Sergio Puerta, Chief Horticulture Officer, Sativa Nativa S.A.S.

As part of Avicanna’s international and vertically integrated business model, Sativa Nativa provides Avicanna with significant potential opportunities, including supply of high quality active pharmaceutical ingredients (APIs), distribution in the Colombian market, proximity to other Latin American markets, and access to a diverse portfolio of cannabis genetics.

“We are delighted by this endorsement of the Colombia health authorities of Sativa Nativa’s capabilities in cannabis cultivations and processing. By combining Avicanna’s intellectual property and strategic capabilities, including clinical testing expertise, together with the experience of the Sativa Nativa team, we are poised to be leaders and innovators in the medical cannabis industry –both in Colombia and the Latin American region as a whole.”

– Aras Azadian, Chief Executive Officer, Avicanna Inc.

About Avicanna
Avicanna Inc. is a biotechnology company focused on innovative product development and advanced clinical research in the medical cannabis industry and is currently headquartered in JLABS @ Toronto (Canada). Capitalizing on the progressive development of its proprietary brand Pura Elements™, Avicanna is focused on building an international distribution network through the use of strategic licensing models. Utilizing the experience of its senior scientists and executive board, and the support of its clinical and academic partners in the University of Toronto and the University Health Network, Avicanna strives to be at the forefront of advancements in the global medical cannabis industry. Avicanna is focused on providing cannabinoid-based therapies that are both clinically supported and medically-approved.

About Sativa Nativa
Sativa Nativa is a vertically integrated medical cannabis company based out of Santa Marta, Colombia. As a partially-owned subsidiary of Avicanna, Sativa Nativa leverages Avicanna’s scientific and executive teams to operate at the highest global standards in each of its operational stages; from genetic development, to cultivation, to processing to final medical products. Utilizing cost and climate competitive advantages, Sativa Nativa’s experienced cultivation team is focused on large-scale production of greenhouse cannabis for local and international distribution in addition to offering a range of advanced cannabinoid products. Additionally, Sativa Nativa will be offering the Pura ElementsTM line of products to the local Colombian medical cannabis community.

Forward-Looking Information
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: (i) the ability to consummate transactions which are currently in discussions, (ii) the continuation of current climate and weather conditions in Colombia which are optimal for cannabis cultivation, (iii) requirements to obtain additional financing, (iv) timeliness of government approvals for granting of permits and licenses, including licenses to cultivate cannabis, (v) completion of local growing facilities, where applicable, (vi) actual operating performance of the facilities, (vii) regulatory or political change in Colombia, Latin America, or Canada, (viii) competition and other risks affecting Avicanna and Sativa Nativa S.A.S., in particular, and the medical cannabis industry generally. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Avicanna is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.[/vc_column_text][/vc_column][/vc_row]

Avicanna Completes 2nd Equity Financing & Welcomes New Strategic Shareholder

TORONTO, Canada/January 29, 2018:   Avicanna Inc., (“Avicanna”) is pleased to announce the completion of its non-brokered private placement offering (the “Offering”) for units in Avicanna (each a “Unit”). Each Unit consists of one common share in the capital of Avicanna (a “Common Share”) and one half of one Common Share purchase warrant (a “Warrant”) with each whole Warrant entitling the holders thereof to purchase one Common Share in the capital of the Corporation (a “Warrant Share”) at a price of $2.50 per Common Share. The Warrants must be exercised on the earlier of eighteen (18) months after the closing of the Offering and three (3) months after the date that Avicanna completes an initial public offering and listing on a recognized stock exchange in Canada.

Avicanna sought to raise $2 million. Due to significant interest in the Offering, Avicanna oversubscribed resulting in a $4.75 million closing. Avicanna intends to use the proceeds of the Offering for the purposes of continuing research and development, clinical development of existing and future product lines, and to fund its phase one build-out of a production facility in Santa Marta, Colombia. Avicanna will also be allocating some of the funds raised to build-out product licensing and sales models  in both Canada and the United States of America.

“We are thrilled to see the level of support and interest that we have received from our subscribers, and we are equally excited to develop meaningful and prosperous relationships with our new strategic shareholders. The funds raised will allow Avicanna to continue to excel and provides our team with the opportunity to focus on the execution of our multi-vertical business model in Canada and around the world.”

-Aras Azadian, CEO

The oversubscription comes well received by Avicanna as it opened the doors to accept new strategic investors such as a top Canadian Financial Institution and other key individual investors. Notably, Avicanna welcomes Anand “Andy” Khubani who brings a wealth of experience in high volume mass distribution through his well-established network of the largest retailers in the United States of America.

About Avicanna

Avicanna Inc. is a biotechnology company focused on innovative product development and advanced clinical research in the medical cannabis industry and is currently headquartered in JLABS @ Toronto (Canada). Capitalizing on the progressive development of its proprietary brand Pura Elements™, Avicanna is focused on building an international distribution network through the use of strategic licensing models. Utilizing the experience of its senior scientists and executive board, and the support of its clinical and academic partners in the University of Toronto and the University Health Network, Avicanna strives to be at the forefront of advancements in the global medical cannabis industry. Avicanna is focused on providing cannabinoid-based therapies that are both clinically supported and medically approved.

About Anand “Andy” Khubani

Chairman, CEO, and founder of IdeaVillage Products Corp., Anand “Andy” Khubani is the master marketer behind today’s top-selling TV products and brands.  Bringing new products to market or catapulting existing products in the marketplace, Mr. Khubani’s prowess has been successfully demonstrated in such well-known products as Copper Fit, Finishing Touch Flawless, HD Vision, Micro Touch, Yoshi, Snackeez and more.

Khubani is responsible for the Company’s product development, corporate strategy and marketing.  His relentless search of voids in the marketplace is his primary business strategy; identifying consumer trends before other companies are aware of these opportunities and capitalizing on these trends through innovative product solutions.

SOURCE Avicanna Inc.

Stay Connected

For more information about Avicanna Inc., visit www.avicanna.com, call 1-647-243-5283, or email info@avicanna.com.

Forward-Looking Information

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: (i) the ability to consummate transactions which are currently in discussions, (ii) requirements to obtain additional financing, (iii) timeliness of government approvals for granting of permits and licenses, including licenses to cultivate cannabis, (iv) completion of local growing facilities, where applicable, (v) actual operating performance of the facilities, (vi) regulatory or political change in Colombia, Latin America, United States of America or Canada, (vii) competition and other risks affecting Avicanna, in particular, and the medical cannabis industry generally. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Avicanna is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Marijuana Meds and Myths

At the end of June, more than 200,000 Canadians were registered to buy medical marijuana from more than 60 licensed Canadian producers. People use the drug to treat everything from migraines to cancer-related symptoms. But how much has science been able to prove about how the drug can treat these health issues? The Agenda discusses the myths and the facts behind medical marijuana with Dr. Hance Clarke, Director of Pain Services at Toronto General Hospital and a member of Avicanna’s Scientific Advisory Board.

Meet The First Cannabusiness To Be Accepted Into Johnson & Johnson’s Innovation Lab

This article was originally published on Benzinga, and adapted exclusively for HIGH TIMES.

As a cannabis company, Avicanna did not know what the outcome would be when applying to be part of JLABS @ Toronto. Yet, they were decided to make it, CEO Aras Azadian and LATAM VP Lucas Nosiglia told Benzinga in a recent interview.

A few things became clear early on in our chat.

First, these guys know about entrepreneurship and overcoming adversity; this is not their first (nor second) successful venture. Second, they understand the value of what CanopyBoulder’s Micah Tapman recently defined as “authentic relationships” for success. Third, one can accomplish big things with relatively little money.

The story of how Avicanna was accepted into JLABS @ Toronto starts with Azadian and Dr. Justin Grant, PhD, MBA, a member of the former’s Scientific Advisory Board and the research program manager of the STTARR Innovation Centre with Princess Margaret Cancer Centre at the University Health Network, the largest cancer center in Canada. The idea of approaching JLABS @ Toronto popped up during a conversation between the two; although it seemed like a long shot, they went for it. They really trusted their vision.

As background, Johnson & Johnson Innovation, JLABS @ Toronto is a 40,000 square-foot life science innovation center located in MaRS Discovery District. The labs provide a flexible environment for start-up companies pursuing new technologies and research platforms to advance medical care. Through a “no strings attached” model, Johnson & Johnson Innovation does not take an equity stake in the companies occupying JLABS, and the companies are free to develop products—either on their own, or by initiating a separate external partnership with Johnson & Johnson Innovation or any other company.

“Our first approach with them was very positive,” Azadian told Benzinga. “However, we knew they had never accepted any cannabinoid companies before.”

Azadian and his team explained that Avicanna is not just a cannabinoid company, but instead, a biotech company involved in the cannabis space—we’ll go into the products and intellectual property later in this article. Apparently, the pitch was pretty convincing, because the company made it to the first phase of interviews.

“They understood the business; they understood the approach; they understood the leveraging of different regulatory frameworks in the U.S. and Canada…”

All of this got them into another interview stage and, eventually, after several filtering instances, Avicanna was accepted to be part of JLABS @ Toronto.

“There are now currently a few cannabis-related companies incubating at our JLABS @ Toronto site, including Avicanna, which is focused on innovative approaches and technologies in the medical cannabis sector. Avicanna was selected into JLABS based on meeting the established criteria to join which includes demonstrating compelling and credible science or technology and addressing a significant medical or market need,” stated Rebecca Yu, head of JLABS Canada.  “While selection into JLABS does not infer any special interests or rights in the companies, our no-strings attached model offers entrepreneurial companies and technologies the ability to access a network of resources to help reach their potential, and we’re excited to see what lies ahead for Avicanna and our other JLABS resident companies.”

Before moving on, it’s time to properly introduce Avicanna and what they do.

Coming from a biotech background, Azadian had not only an understanding of the industry, but also what he’s called an “incredible network.” So, he decided to leverage these assets and create a biotech company that was focused on cannabinoids and cannabinoid delivery mechanisms.

“What we noticed was, there is a lot of sophistication with respect to cultivation in Canada. However, due to the legal landscape, there are limitations with respect to what licensed producers can do for R&D,” he explained. “With respect to the American landscape, even though (in specific states) producers can make the products and retail them in the medicinal and/or recreational markets, there are limitations with what the federal government and the FDA will allow to be done clinically.

“There are gaps in the medical cannabis industries of the two countries that are, in my opinion, spearheading the evolution of the cannabis industry,” he added. “So, we decided to leverage off of those gaps and be a multinational company that has the R&D, the product development,  clinical development capabilities, which is only enhanced by our ability—collaborate with the top medical institutions in Canada.”

One of the early steps was a strategic partnership with Scientus Pharma, a licensed dealer that allows Avicanna to address these gaps, to manufacture and clinically develop its product line.

Soon after, Avicanna began developing its intellectual property for a range of transdermal delivery mechanisms including several versions of patches and creams, all with natural cannabanoids as its active ingredient. The first-generation products are now available for export and are entering the South American and European markets in late 2017 under the Pura Elements brand. Additionally, the Avicanna team is working toward approvals in their home base of Canada and expects to make its first entrance in the U.S. market by early 2018.[/vc_column_text][tm_image image=”4767″][vc_column_text]“We are now in the clinical development phase,” Azadian continued, pointing out the company is currently conducting animal trials to understand the actual bioavailability and pharmacokinetics of the range of products that have been developed. “We are conducting a spectrum of studies including safety, toxicology, and bioavailability to better understand each particular product and help design our generation two ailment-specific products in the future.”

This is a double-sided effort.

On the one hand, Avicanna wants to prove the medical effectiveness of its products. On the other hand, they want to enhance them through diverse collaborations with scientists, research facilities and institutions. Ultimately, the idea is to develop different products, with diverse cannabinoid and release profiles, aimed at specific ailments.

Intrigued by how Avicanna’s patches, creams and tinctures work, Benzinga asked for an explanation. How long do they take to act? Do they get you high or stoned?

“The transdermal technology is an effective delivery mechanism as it avoids the first pass metabolism while avoiding smoking. Because of its slow release, the patient is avoiding an extreme surge of cannabinoids,” Azadian answered. “I personally have used the patches. I found with the THC in our 30 mg patch had minimal psychoactive effect, which was incredible because I had medical relief.”

A very important element to Avicanna’s business model and plan is international presence: they want to be early entrants in multiple nascent medical marijuana markets like Colombia, Switzerland, Germany, Spain, Chile, Brazil and Argentina.

“Since we first started with the venture, we’ve been noticing that companies, especially in Canada, are aiming at creating economies of scale for production, to prepare for the legalization of the recreational markets in 2018,” Lucas Nosiglia, who’s in charge of LATAM expansion, said. “Our model is lean and capex-low as we focus on strategic partnerships. We’ve managed to operate with our initial capital of C$1.6 million ($1.26 million) so far, leveraging our international networks to expand our footprint worldwide.”

So, what Nosiglia is working on right now is establishing the foundations to get into new markets as they roll out countrywide regulations beyond compassionate-use and exceptions in markets such as Argentina. Additionally, Avicanna has established a partnership in Colombia, which should allow them to cultivate and manufacture at a significant discount for local distribution and export.

“We decided to only raise what we needed and only tapped 40 strategic shareholders. The majority of them are investment bankers that are heavily invested in the industry or strategic investors, including ourselves—all of the founding partners have put in money as well. That was the first round,” Azadian concluded. “As we continue to progress and meet milestones, we will be visiting future financing opportunities.”

Meet Avicanna, The First Marijuana Company To Be Accepted Into Johnson & Johnson Innovation, JLABS @ Toronto

As a cannabis-focused company, Avicanna did not know what the outcome would be when it applied to be part of JLABS @ Toronto. Yet, the company was delighted to make it, CEO Aras Azadian and LATAM Vice President Lucas Nosiglia told Benzinga in a recent interview.

A few things became clear early in our chat. First, these guys know about entrepreneurship and overcoming adversity; this is not their first (nor second) successful venture. Second, they understand the value of what CanopyBoulder’s Micah Tapman recently defined as “authentic relationships” for success. Third, big things can be accomplished with relatively little money.

Getting MJ Into JLABS

The story of how Avicanna was accepted into JLABS @ Toronto starts with Azadian and Justin Grant, PhD, MBA, a member of the former’s Scientific Advisory Board, and the research program manager of the STTARR Innovation Centre with Princess Margaret Cancer Centre at the University Health Network, the largest cancer center in Canada. The idea of approaching JLABS @ Toronto popped up during a conversation between the two; although it seemed like a long shot, they went for it. They really trusted their vision.

As background, Johnson & Johnson (NYSE: JNJ) Innovation, JLABS @ Toronto is a 40,000-square-foot life science innovation center located in MaRS Discovery District. The labs provide a flexible environment for startup companies pursuing new technologies and research platforms to advance medical care. Through a “no strings attached” model, Johnson & Johnson Innovation does not take an equity stake in the companies occupying JLABS, and the companies are free to develop products, either on their own or by initiating a separate external partnership with Johnson & Johnson Innovation or any other company.

“Our first approach with them was very positive,” Azadian told Benzinga. “However, we knew they had never accepted any cannabinoid companies before.”

The CEO and his team explained that Avicanna is not just a cannabinoid company but a biotech company involved in the cannabis space.

The pitch was convincing, and the company made it through to the first phase of interviews.

“They understood the business; they understood the approach; they understood the leveraging of different regulatory frameworks in the U.S. and Canada,” Azadian added. All of this got them into another interview stage and, eventually, after several filtering instances, Avicanna was accepted to be part of JLABS @ Toronto.

“Companies at JLABS are at the leading edge of their field,” Rebecca Yu, heads of JLABS Canada told Benzinga. “Avicanna is focused on innovative approaches and technologies, and was selected into JLABS based on meeting our stringent criteria for demonstrating compelling and credible science or technology that addresses a significant medical or market need.

“Selection into JLABS does not infer any special investments or rights assigned to J&J, and our no-strings attached model offers entrepreneurial companies and technologies the ability to access a network of resources and similar stage companies to help them reach their potential,” she added.

New Company, Proven Product Line

Before moving on, it’s time to properly introduce Avicanna and what they do.

Coming from a biotech background, Azadian had not only an understanding of the industry, but also what he’s called an “incredible network.” So, he decided to leverage these assets and create a biotech company that was focused on cannabinoids and cannabinoid delivery mechanisms.

“What we noticed was, there is a lot of sophistication with respect to cultivation in Canada. However, due to the legal landscape, there are limitations with respect to what licensed producers can do for R&D on advanced delivery mechanisms,” he explained. “With respect to the American landscape, even though (in specific States) producers can make the products and retail them in the medicinal and or recreational markets, there are limitations with what the federal government and the FDA will allow to be done clinically.

“There are gaps in the medical cannabis industries of the two countries that are, in my opinion, spearheading the evolution of the cannabis industry at a global level. So, we decided to leverage off of those gaps and be a multinational company that has the R&D, the product development, and the IP with market acceptance in the U.S., but bring that into a context where we can clinically develop it – and even collaborate with the top medical institutions in Canada.”

One of the early steps was a strategic partnership with Scientus Pharma, a licensed dealer that allows Avicanna to address these gaps, to manufacture and clinically develop its product line. Soon after, the biotech company went after the intellectual property for transdermal delivery mechanisms like patches and creams, and a number of other products, branding it as PURA ELEMENTS.[/vc_column_text][tm_image image=”4745″][vc_column_text]“We are now in the clinical development phase,” Azadian continued, pointing out the company is currently conducting animal trials to understand the actual bioavailability and pharmacokinetics of our products “We are conducting a spectrum of studies including safety, toxicology, and bioavailability to better understand each particular product.”

This is a double-sided effort. On the one hand, Avicanna wants to prove the medical effectiveness of its products. On the other hand, they want to enhance them through diverse collaborations with scientists, research facilities and institutions. Ultimately, the idea is to develop different products, with diverse cannabinoid and release profiles, aimed at specific ailments.

How The Patch Works

Intrigued by how Avicanna’s patches, creams and tinctures work, Benzinga asked for an explanation. How long to they take to act? Do they get you high or stoned?

“The transdermal technology is an effective delivery mechanism as it avoids the first pass metabolism and smoking. Because of its slow release profile, the patient is avoiding an extreme surge of cannabinoids,” Azadian answered.

“I personally have used the patches. I found with the THC in our 30 mg patch had minimal psychoactive effect, which was incredible because I had the desired medical relief.”

A Multinational Focus

A very important element to Avicanna’s business model and plan is international presence: They want to be early entrants in multiple nascent medical marijuana markets such as Colombia, Switzerland, Germany, Spain, Chile, Brazil and Argentina.

“Since we first started with the venture, we’ve been noticing that companies, especially in Canada, are aiming at creating economies of scale for production, to prepare for the legalization of the recreational markets in 2018,” Nosiglia, who’s in charge of LATAM expansion, said. “Our model is lean and capex-low as we focus on strategic partnerships. We’ve managed to operate with our initial capital of C$1.6 million ($1.26 million) so far, leveraging our international networks to expand our footprint worldwide.”

So, what Nosiglia is working on right now is establishing the foundations to get into new markets as they roll out countrywide regulations beyond compassionate-use and exceptions in markets such as Argentina. Additionally, Avicanna has established a partnership in Colombia, which should allow them to cultivate and manufacture at a significant discount for local distribution and export.

“We decided to only raise what we needed and only tapped 40 strategic shareholders. The majority of them are investment bankers that are heavily invested in the industry or strategic investors, including ourselves – all of the founding partners have put in money as well. That was the first round,” Azadian concluded. “As we continue to progress and meet milestones we will be visiting future financing opportunities.”

Check back soon for part 2 of this article, where Nosiglia and Azadian will walk us through the largest opportunities in international markets. Why could Europe and Latin America prove valuable? What’s the problem with Spain? Are there opportunities left in Switzerland?