Avicanna’s Rho Phyto Branded Products to be Available in California

Avicanna’s Rho Phyto Branded Products to be Available in California

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TORONTO, Dec. 1, 2019 /CNW/ – Avicanna Inc. (“Avicanna” or the “Company“) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) today announces that LC2019, Inc. (“LC2019“), the entity that holds a license to Avicanna’s intellectual property in the United States, has advised Avicanna that it has entered into an agreement (the “License Agreement“) with a subsidiary of Kings Garden Inc. (“Kings Garden“), a California based company, manufacturing the Kings Garden brand, with extensive experience in the cultivation, processing and manufacturing of high-end cannabis products, pursuant to which LC2019 will sub-license Avicanna’s Rho PhytoTM brand and proprietary formulations (collectively, the “Rho Products“) to Kings Garden.

As announced by Avicanna in its November 26, 2019 press release, Avicanna has an option to acquire all of the outstanding shares of LC2019, which option may be exercised by Avicanna at any time and is expected to be exercised upon cannabis cultivation, processing, distribution and possession becoming federally legal in the United States.

Under the terms of the License Agreement, LC2019, through a wholly-owned subsidiary, has provided the Kings Garden team with an exclusive license to use the Rho Phyto trademark and to manufacture, market, distribute and sell the Rho Phyto advanced formulation products in the State of California. In consideration of the license granted under the License Agreement, the Kings Garden team has agreed to pay to LC2019 a royalty equal to 40% of the net profits from the sale of the Rho Products. Kings Garden, through its licensed subsidiary, will produce, manufacture and sell the Rho Products in the State of California. The initial term of the License Agreement is three years.

“We are thrilled to see the Rho Phyto brand and advanced cannabis product offerings have their initial launch in the State of California which represents the largest and one of the most sophisticated consumer markets in the world. We are also excited that the LC2019 team has decided to partner with the Kings Garden team which have demonstrated industry leading products, quality and execution. We hope that this launch in California will provide the Rho Phyto brand with a foothold in the US market place, help establish a leading global brand and attain both market information and efficacy data around the proprietary product lines,” stated Aras Azadian, Chief Executive Officer of Avicanna.

About Avicanna

Avicanna is an Ontario corporation focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products through its two main business segments, cultivation and research and development.

Avicanna’s two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna’s cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).

Avicanna’s research and development business is primarily conducted out of Canada at its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto. Avicanna’s scientific team develops products, and Avicanna has also engaged the services of researchers at the Leslie Dan Faculty of Pharmacy at the University of Toronto for the purpose of optimizing and improving upon its products.

Avicanna’s research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics and Extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.

Stay Connected

For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email info@avicanna.com.

Cautionary Note Regarding Forward-Looking Information and Statements

Certain information in this press release contains forward-looking statements. Such statements include but are not limited to the timing of the exercise by Avicanna of its option to acquire all of the shares of LC2019 and the successful commercialization of the Rho Products in California. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict, including the risk factors set out under the heading “Risk Factors” in the Company’s long form final prospectus dated July 8, 2019. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, unless and until required by securities laws applicable to the Company.

SOURCE Avicanna Inc.

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Avicanna Announces Option to Purchase Newly Formed US Cannabis Operator

Avicanna Announces Option to Purchase Newly Formed US Cannabis Operator

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TORONTO, Nov. 26, 2019 /CNW/ – 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 entered into a license agreement (the “License Agreement“) with LC2019, Inc. (“LC2019“) pursuant to which the Company has agreed to license certain proprietary formulations and brand elements to LC2019 for commercialization in the United States.  As consideration for entering into the License Agreement, LC2019 and its shareholders have entered into a definitive option agreement (the “Option Agreement“) that grants Avicanna the option (the “Option“) to acquire 100 percent of the issued and outstanding shares of LC2019, with such Option to be exercisable in the event that cannabis cultivation, processing, distribution and possession‎ becomes federally legal in the United States (the “Triggering Event“). Avicanna may elect to waive the Triggering Event and exercise the Option at any time.

Additionally, Avicanna announces that Arash Moghani has stepped down as the Company’s Chief Technology Officer and has advised Avicanna that he will be joining the executive leadership team at LC2019.

Transaction Highlights:

  • The License Agreement will enable LC2019 to commercialize Avicanna’s RhoTM products and proprietary research-backed formulations in the US marketplace;

  • LC2019 has advised Avicanna that it expects to establish a strong U.S. presence through the establishment of manufacturing and/or licensing arrangements on a state-by-state basis in states that permit the use of cannabis for recreational or medical purposes; and

  • LC2019 has an experienced management team (which will now include Mr. Moghani) and Avicanna believes that LC2019 will be well positioned to create potential value for Avicanna shareholders should the Option be exercised or monetized in the future.

“We are thrilled to secure a strategy that will allow us to enter the United States as soon as federally permissible and, in the interim, provide an opportunity for our brands and science-driven product formulations to establish themselves in one of the largest and most exciting global markets for cannabis products,” stated Setu Purohit, President of Avicanna.

License Agreement

Under the terms of the License Agreement, Avicanna has granted LC2019 non-exclusive rights to use certain of Avicanna’s intellectual property, including, but not limited to, copyrights and trademarks associated with certain brands and proprietary product formulations. The License Agreement may be sub-licensed by LC2019 on similar terms and conditions. The License Agreement has a 10 year term and is subject to standard termination rights. The License Agreement contains standard representations, warranties and covenants of the parties.

Option Agreement

Pursuant to the terms of the Option Agreement, upon the occurrence of the Triggering Event, Avicanna will exercise the Option and purchase all of the issued and outstanding shares of LC2019, as follows: (i) all of the issued and outstanding Class A shares at a nominal amount; (ii) all of the issued and outstanding Class B shares at the applicable subscription price; and (iii) all of the issued and outstanding Class C shares for up to 10% of the increase in the fair market value of LC2019 between the date of the Option Agreement and the date that Avicanna provides notice of exercise to LC2019, up to a maximum aggregate amount of CDN$10,000,000. Avicanna is entitled to elect to satisfy the purchase price in cash or through the issuance of common shares of Avicanna, in its sole discretion, subject to the approval of the Toronto Stock Exchange and in accordance with the policies of the Toronto Stock Exchange at such time. Additionally, Avicanna may elect to exercise the Option prior to the occurrence of the Triggering Event in its sole discretion or to assign the Option at any time.

The Option is exercisable for 10 years from the date of grant. The Option Agreement contains standard negative covenants, representations and warranties.

To the knowledge of the Company, it carries out its operations in compliance with all applicable laws in the jurisdictions in which it operates.

About LC2019, Inc.

LC2019 was established to carry on cannabis related operations in the United States in accordance with State sanctioned cannabis programs. LC2019 is expected to produce RhoTM products and/or sub-license the rights to manufacture and sell such products pursuant to such State programs. As of the date hereof, the principal asset of LC2019 is the License Agreement.

About Avicanna

Avicanna is an Ontario corporation focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products through its two main business segments, cultivation and research and development.

Avicanna’s two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna’s cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).

Avicanna’s research and development business is primarily conducted out of Canada at its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto. Avicanna’s scientific team develops products, and Avicanna has also engaged the services of researchers at the Leslie Dan Faculty of Pharmacy at the University of Toronto for the purpose of optimizing and improving upon its products.

Avicanna’s research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics and Extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.

Stay Connected

For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email info@avicanna.com.

Cautionary Note Regarding Forward-Looking Information and Statements

This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking statements and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, LC2019 or their respective subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. These forward-looking statements include, but are not limited to, statements relating to our expectations with respect to: the timing and outcome of the transaction; the anticipated benefits of the transaction to the parties and their respective security holders; impact of the transaction, the ability of LC2019 to develop the brands and commercialize the products, the states in which LC2019 will operate and the consideration to be paid upon exercise of the Option.

Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, the ability of the parties to receive, in a timely manner and on satisfactory terms, the necessary regulatory approvals; the ability of the parties to satisfy, in a timely manner, the other conditions; the likelihood of the triggering event being satisfied or waived by the outside date; other expectations and assumptions concerning the transaction; and such risks contained in the Company’s long-form prospectus dated July 8, 2019 available on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive.

In respect of the forward-looking statements and information concerning the anticipated benefits and completion of the transaction and the anticipated timing for completion of the transaction, the Company has provided such statements and information in reliance on certain assumptions that they believe are reasonable at this time. Although the Company believes that the assumptions and factors used in preparing the forward-looking information or forward-looking statements in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information and forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information or forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

There can be no assurance that the transaction, including the triggering event, will occur, or that it will occur on the terms and conditions contemplated in this news release. The transaction could be modified, restructured or terminated. Actual results could differ materially from those currently anticipated due to a number of factors and risks.

SOURCE Avicanna Inc.

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Avicanna Reports Third Quarter 2019 Financial Results

Avicanna Reports Third Quarter 2019 Financial Results

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TORONTO, Nov. 14, 2019 /CNW/ – Avicanna Inc. (“Avicanna” or the “Company) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products announces results for the third quarter ended September 30, 2019.

Aras Azadian, Chief Executive Officer of Avicanna, commented “We have built tremendous momentum and have connected several international verticals into a unified vertically integrated model in recent months. During this time, we have initiated several revenue streams through our various product lines, which we expect to drive the Company’s future growth. This is an exciting time for Avicanna, as we are starting to see years of our hard work and research and development come together to result in commercialized cannabinoid-based products at a time where global market demand continues to increase.”

Third Quarter Operational Highlights

  • Successfully manufactured the first commercial batch of Pura EarthTM branded derma-cosmetic products. This first batch included a total of approximately 28,000 units of Pura Earth product manufactured using approximately 28 kilograms of the Company’s purified cannabidiol (“CBD”).

  • Clinical trials for Avicanna’s branded derma-cosmetic line, Pura Earth, with the Centro de Atencion e Investigacion Medica CAIMED S.A.S., commenced during the quarter. These trials will demonstrate effectiveness with specific cosmetic endpoints, such as reduction of fine lines associated with aging, efficacy as a moisturizer for eczema prone skin, and reduction of sebum and redness attributed to acne. Upon completion, it is expected that these products will be the first CBD based cosmetic products with claims supported by clinical trials. These results are expected in the fourth quarter of 2019.

  • Health Canada granted Avicanna a cannabis research licence, which will permit cannabinoid-based formulations and advanced pharmaceutical drug development at the Company’s research and development headquarters located at the MaRS Discovery District in Toronto.

  • Expanded the scope and duration of Avicanna’s research and collaboration agreement with Dr. Christine Allen’s research group at the University of Toronto’s Faculty of Pharmacy, which is focused on pharmaceutical development of cannabinoid-based medicines, further solidifying the Company’s position as a leader in the biopharmaceutical cannabis industry.

  • Formed a joint venture with Sigma Analytical Services Inc. for the testing of cannabis and cannabis-based products in Colombia. The joint venture is expected to establish the first Good Manufacturing Practices and Good Laboratory Practice analytical testing facility in Colombia for such products.

  • Entered into an agreement with the University of Guelph for the in vivo analysis of Avicanna’s proprietary cannabinoid-based products and formulations to treat psychiatric disorders including anxiety, depression, PTSD and addiction. This agreement provides a unique opportunity for Avicanna to commence research on brain function and health. In addition, the Company entered into a research agreement with the University of Guelph and Dr. Max Jones to produce and optimize commercial genetics.

  • Added an additional 120,000 square feet of cultivation space in its majority owned subsidiaries, Santa Marta Golden Hemp S.A.S. (“SMGH”) and Sativa Nativa S.A.S (“Sativa Nativa”). The total cultivation area for the period ending September 30, 2019 is now 410,000 square feet. With this addition, the Company has completed its initial phase of its cultivation and extraction facility.

Financial Highlights

  • The Company had approximately $6.6 million of cash on hand and short-term investments at quarter end. Avicanna made significant strides to position itself for commercial sales. In particular, capital expenditures on its cultivation facilities was expedited to bring the 410,000 square feet of cultivation space online, which marks the completion of its initial phase of construction. As a result, it will be well positioned to meet future sales demand.

  • The Company’s costs increased for the nine months ending September 30, 2019 as a result of scaling up operations and the significant costs associated with the listing of its common shares on the Toronto Stock Exchange. In particular, the Company scaled up certain costs as it related to the commercial launch of its Pura Earth line of products in Colombia.

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Avicanna Announces Voluntary Lock-Up Agreements for Key Insiders and Separation of CEO and Chairman Roles

Avicanna Announces Voluntary Lock-Up Agreements for Key Insiders and Separation of CEO and Chairman Roles

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TORONTO, Oct. 29, 2019 /CNW/ – Avicanna Inc. (“Avicanna” or the “Company“) (TSX: AVCN) (OTCQX: AVCNF), a biopharmaceutical company focused on the development, manufacturing and commercialization of organic and sustainable plant-derived cannabinoid-based products, today announces that its executive officers and directors have entered into voluntary lock-up agreements to extend the term of their lock-up periods, affecting approximately 7.7 million shares. The Company also announces that Kyle Langstaff has stepped down as Vice President (Operations) and has concurrently entered into a lock-up agreement to restrict the disposition of his common shares. In addition, the Company’s board of directors has separated the roles of Chairman and Chief Executive Officer.

Extended Lock-Up Agreements

Each member of the Company’s board of directors has entered into voluntary lock-up agreements pursuant to which they will not sell, transfer or pledge any of their Avicanna securities prior to July 1, 2020.  On July 1, 2020, the Company will release 10% of such securities to the respective directors, with the remaining securities released in six equal tranches of 15% every six months following the first release, subject to customary exceptions. The members of the board of directors hold an aggregate of 7,176,850 common shares of the Company.

The executive officers of the Company have entered into voluntary lock-up agreements pursuant to which they will not sell, transfer or pledge any of their Avicanna securities prior to January 1, 2020. On January 1, 2020, the Company will release 10% of such securities to the respective executives, with the remaining securities released in six equal tranches of 15% every six months following the first release, subject to customary exceptions. The executive officers hold an aggregate of 540,743 common shares of the Company.

In addition, each director and officer entering into one of the voluntary lock-up agreements described above will not sell more than 5,000 common shares of the Company in any one week period during the first year following the initial release date under such agreement, without the consent of the Company.

Upon release of the securities subject to the extended lock-up agreements, the executive officers and directors will remain subject to all applicable black-out periods under the Company’s insider trading policy, which is available on Avicanna’s website.

Additionally, Kyle Langstaff, non-management founder of Avicanna, has resigned as Vice President (Operations) for personal reasons, effective immediately. Mr. Langstaff holds an aggregate of 2,418,333 shares of the Company’s common stock. As a demonstration of his confidence in the Company, Mr. Langstaff has entered into a voluntary lock-up agreement, pursuant to which he will not sell more than 10,000 common shares of the Company in any one week period prior to April 18, 2020, without the consent of the Company. Under Mr. Langstaff’s lock-up agreement, 10% of his securities were released on October 18, 2019, and the remaining securities are to be released in six equal tranches of 15% every six months following the first release, subject to customary exceptions. As of the date hereof, Mr. Langstaff has not disposed of any of his securities of the Company.

Aras Azadian, the Company’s Chief Executive Officer, stated, “These extended lock-up agreements demonstrate the confidence that the management team and the board of directors have in the Company’s long-term potential. We believe these agreements will further strengthen the commitment of all stakeholders to achieving our goal of becoming an industry leader in organic and sustainable plant-derived cannabinoid-based products.”

Separation of Chairman and CEO Roles

The Company’s board of directors also decided to separate the roles of Chairman and Chief Executive Officer. Mr. Azadian will continue as the Company’s Chief Executive Officer. Avicanna’s board of directors appointed Dr. Chandrakant Panchal, current independent Lead Director, as the Company’s Non-Executive Chairman, effective immediately.

Mr. Azadian, stated, “Avicanna’s commitment to best practices extends to all areas of the Company. The separation of the Chairman and CEO roles is an important feature in an independent board and its duties to oversee the Company’s operations. We are happy to appoint Dr. Panchal, who is an experienced director and biotechnology industry veteran, as Avicanna’s Non-Executive Chairman.”

“I am delighted and honored to be elected as non-executive Chairman of Avicanna. It is imperative that corporate governance is a priority for the Company. The separation of the roles of Chairman and CEO reflect the board and the Company’s commitment to good corporate governance,” said Dr. Chandrakant Panchal, the Company’s Non-Executive Chairman.

About Avicanna

Avicanna is an Ontario corporation focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products through its two main business segments, cultivation and research and development.

Avicanna’s two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna’s cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).

Avicanna’s research and development business is primarily conducted out of Canada at its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto. Avicanna’s scientific team develops products, and Avicanna has also engaged the services of researchers at the Leslie Dan Faculty of Pharmacy at the University of Toronto for the purpose of optimizing and improving upon its products.

Avicanna’s research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics and Extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.

Stay Connected

For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email info@avicanna.com.

Cautionary Note Regarding Forward-Looking Information and Statements

Certain information in this press release contains forward-looking statements. Such statements include but are not limited to the timing of securities releases, the maximum number of shares that will be sold by persons subject to the lock-up agreements in any one week period and the additional restrictions the securities will be subject to upon release from the lock-up agreements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict, including the risk factors set out under the heading “Risk Factors” in the Company’s long form final prospectus dated July 8, 2019. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, unless and until required by securities laws applicable to the Company.

SOURCE Avicanna Inc.

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Avicanna (TSX: AVCN) Completes First Commercial Exports of CBD to South Africa and the United Kingdom

Avicanna (TSX: AVCN) Completes First Commercial Exports of CBD to South Africa and the United Kingdom

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TORONTO, Oct. 24, 2019 /CNW/ – Avicanna Inc. (“Avicanna” or the “Company“) (TSX: AVCN)(OTCQX: AVCNF), a biopharmaceutical company focused on the development, manufacturing and commercialization of cannabinoid-based products, is pleased to announce that Santa Marta Golden Hemp S.A.S. (“SMGH“), its majority owned subsidiary, has completed commercial exports of its Aureus™ brand of CBD-based products to South Africa and the United Kingdom (collectively, the “Jurisdictions“).

The Aureus brand of products include an organic and sustainable line of plant-derived active pharmaceutical ingredients (“APIs“) and bulk CBD formulations developed by Avicanna in collaboration with SMGH and Sativa Nativa S.A.S. (“Sativa Nativa“), which is also a majority owned subsidiary of Avicanna. These initial sales included the export of CBD isolate and 4% bulk formulation for CBD oil sublingual sprays. Each of the above exports has been completed in accordance with all applicable laws in the Jurisdictions.

Aras Azadian, Avicanna’s Chief Executive Officer, stated “We are excited to bring the Aureus brand of cannabinoid APIs to our international customers. We believe these initial sales further validate the brand’s opportunities in these two countries, as well as the potential for us to actively market our APIs across the globe to manufacturers of CBD products. We believe the Aureus brand of API products will become a leader in organic and sustainable cannabinoid raw materials and the gold standard with respect to global quality controls, which we believe are necessary for the evolution of a worldwide cannabinoid industry.”

About Aureus

The Aureus brand is a collaboration between Avicanna and its two majority owned Colombian subsidiaries, SMGH and Sativa Nativa. It is expected that SMGH and Sativa Nativa will sell a range of premium of APIs, in the form of resins, distillates and isolates under the Aureus brand. These APIs are expected to consist of purified cannabinoids including cannabidiol (CBD), tetrahydrocannabinol (THC) and other rare cannabinoids. The Aureus brand will allow customers to have confidence that each shipment of API will meet Avicanna’s industry leading standards of quality, has been grown in accordance with Good Agricultural and Collection Practices and has been extracted in compliance with Good Manufacturing Standards. Additionally, Aureus products are cultivated with organic, environmentally sustainable and socially responsible practices.

About Avicanna

Avicanna is an Ontario corporation focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products through its two main business segments, cultivation and research and development.

Avicanna’s two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna’s cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).

Avicanna’s research and development business is primarily conducted out of Canada at its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto. Avicanna’s scientific team develops products, and Avicanna has also engaged the services of researchers at the Leslie Dan Faculty of Pharmacy at the University of Toronto for the purpose of optimizing and improving upon its products.

Avicanna’s research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics and Extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.

Stay Connected

For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email info@avicanna.com.

Cautionary Note Regarding Forward-Looking Information and Statements

Certain information in this press release contains forward-looking statements. Such statements include but are not limited to the expected products to be marketed under the Aureus brand and expected manufacturing standards of the Aureus products. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict, including the risk factors set out under the heading “Risk Factors” in the Company’s long form final prospectus dated July 8, 2019. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, unless and until required by securities laws applicable to the Company.

SOURCE Avicanna Inc.

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Avicanna Announces Retail Launch of Pura Earth Derma-Cosmetics with Initial Roll-Out in Colombia

Avicanna (TSX: AVCN)Avicanna Announces Retail Launch of Pura Earth Derma-Cosmetics with Initial Roll-Out in Colombia

Pura Earth derma-cosmetics available in approximately 59 retail locations throughout Colombia, including Blind prestige beauty shops and Cromantic professional beauty markets

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS/

TORONTO, Oct. 21, 2019 /CNW/ – Avicanna Inc. (“Avicanna” or the “Company“) (TSX: AVCN) (OTCQX: AVCNF), a biopharmaceutical company focused on the development, manufacturing and commercialization of organic and sustainable plant-derived cannabinoid-based products, is pleased to announce the retail launch of its Pura Earth™ derma-cosmetics line of CBD products, which are now available at approximately 59 high-end retail locations throughout Colombia, including Blind prestige beauty shops and Cromantic professional beauty markets.

Avicanna’s Anti-Aging Treatment, Anti-Aging Serum, Clear Skin Treatment and Intensive Skin Conditioning Treatment, which are the first four of the nine Pura Earth product lines, are currently available at retail. Additionally the Pura Earth line will be offered on e-commerce platforms, including Percos, Cormantic, and Blind, as well as Avicanna’s own platform, which is currently dedicated to Pura Earth.

The registration of the Pura Earth products as final products in Colombia will enable Avicanna to export such products into international jurisdictions that permit such products. Avicanna expects to launch the Pura Earth brand in additional international jurisdictions in early-2020.

The Pura Earth products were produced with Avicanna’s proprietary formulations using cannabidiol (“CBD“) isolate extracted by the Company’s majority owned subsidiary, Santa Marta Golden Hemp S.A.S. (“SMGH“), from cannabis grown and cultivated by SMGH in Santa Marta, Colombia. SMGH’s CBD isolate is derived from its USDA organic certified hemp (non-psychoactive cannabis). Additionally, the Pura Earth products will be supported by clinical data from studies conducted by the Centro de Atención e Investigación Médica CAIMED S.A.S. in collaboration with Avicanna.

“We are thrilled to start offering customers the world’s first premium CBD skin care line with advanced formulations and substantiated claims through clinical evidence. The initial launch of Pura Earth in Colombia at these prestige beauty retailers is just the beginning of our global commercial strategy.  Our vertically integrated operations have the scalability to support manufacturing a full range of premium CBD products and supply the global marketplace,” stated Aras Azadian, Avicanna’s Chief Executive Officer.

Colombia is one of the top four cosmetics markets in Latin America showing high growth rate in the cosmetics industry. The Latin America cosmetics industry is continuously expanding and has placed itself as one of the fastest growing and most vibrant cosmetic markets across the world. As per Goldstein Research, Latin America cosmetics market has reached a value of USD $31.98 billion in 2017 and is anticipated to grow at a CAGR of 4.49% during the forecast period 2017-2025.

About Pura Earth

Pura Earth is Avicanna’s derma-cosmetic line which utilizes a combination of purified cannabidiol (CBD) and other synergistic botanical ingredients designed to naturally regulate and nourish the skin. The Pura Earth products are formulated with CBD cultivated under organic and sustainable conditions by Avicanna’s subsidiary in Santa Marta, Colombia in the foothills of the Sierra Nevada Mountains. The Pura Earth product line was designed by Avicanna and optimized in partnership with the University of Toronto using Avicanna’s proprietary formulations. The Pura Earth product line is manufactured by Altea Farmaceutica S.A. (“Altea“) under Good Manufacturing Practices standards. In addition, Centro de Atención e Investigación Médica CAIMED S.A.S. is currently completing clinical studies on selected Pura Earth products in order to demonstrate their effectiveness with specific cosmetic endpoints, such as reduction of fine lines associated with aging, efficacy as a moisturizer for eczema prone skin, and reduction of sebum and redness attributed to acne.

About Avicanna

Avicanna is an Ontario corporation focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products through its two main business segments, cultivation and research and development.

Avicanna’s two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna’s cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).

Avicanna’s research and development business is primarily conducted out of Canada at its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto. Avicanna’s scientific team develops products, and Avicanna has also engaged the services of researchers at the Leslie Dan Faculty of Pharmacy at the University of Toronto for the purpose of optimizing and improving upon its products.

Avicanna’s research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics and Extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.

Stay Connected

For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email info@avicanna.com.

Cautionary Note Regarding Forward-Looking Information and Statements

Certain information in this press release contains forward-looking statements. Such statements include but are not limited to the offering of the Pura Earth products on e-commerce platforms, the exportation of the Pura Earth Products into international jurisdictions, the expected launch date of the Pura Earth products internationally and the expected results of the clinical data supporting the Pura Earth products. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict, including the risk factors set out under the heading “Risk Factors” in the Company’s long form final prospectus dated July 8, 2019. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, unless and until required by securities laws applicable to the Company.

SOURCE Avicanna Inc.

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Avicanna (TSX: AVCN) Announces Receipt of the First Colombian USDA Organic Certification for its Hemp Cultivation and Registration of 15 Additional Genetics

Avicanna (TSX: AVCN) Announces Receipt of the First Colombian USDA Organic Certification for its Hemp Cultivation and Registration of 15 Additional Genetics

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS/

TORONTO, Oct. 18, 2019 /CNW/ – Avicanna Inc. (“Avicanna” or the “Company“) (TSX: AVCN) (OTCQX: AVCNF), a biopharmaceutical company focused on the development, manufacturing and commercialization of organic and sustainable plant-derived cannabinoid-based products, is pleased to announce that Santa Marta Golden Hemp S.A.S. (“SMGH“), a majority owned subsidiary of the Company, has obtained a United States Department of Agriculture (“USDA“) National Organic Program (“NOP“) certification from Control Union Certifications, for its hemp cultivar, and has obtained registration for an additional 15 genetic strains of cannabis.

USDA Organic Certification

Receipt of a NOP certification from the USDA for the cultivation of hemp (non-psychoactive cannabis) makes SMGH the first producer to receive this certification in Colombia. As a result, SMGH’s organic cultivation practices are now validated by the USDA, which positions the Company to provide certified organic hemp derivatives for use in supplements and food products produced or shipped to the United States. The USDA protects consumers by allowing certified growers to use the USDA organic logo on products that are grown without the use of synthetic fertilizers, pesticides or herbicides. Any products intended for medical purposes coming from this organic cultivated hemp are outside of the scope of this certificate and cannot be commercialized as “organic”.

Aras Azadian, the Company’s Chief Executive Officer, stated, “Receiving the USDA NOP certification marks a significant milestone in our commitment to help set the highest quality standards in organic and sustainable cannabis cultivation, as we take another step forward towards becoming a global leader in the CBD industry. We expect this achievement to facilitate our growth strategy, which includes the expansion of both our plant-derived active pharmaceutical ingredients (“APIs“) and bulk CBD formulations, as well as our branded lines of finished derma-cosmetics and phyto-therapeutic products into the U.S. and European markets where the USDA certification is a premium differentiator for those product categories that allow hemp to be certified as organic.”

About Organic Cultivation

Dedicated to environmental preservation, SMGH will cultivate 100% sun-grown USDA certified organic hemp. Implementing Good Agricultural and Collection Practices and promoting a living soil system, SMGH’s plants will grow healthy. The use of chemical pesticides and herbicides is harmful for the consumer, the plant, and mostly the environment. Plants grown under the pressure of conventional practices don’t develop to produce their full potential of nutrients and benefits. Chemicals used in conventional agriculture are responsible for poisoning water sources, damaging the soil and diminishing its ability to sequester carbon dioxide which is a major cause for global warming. SMGH strives to maintain its soils free from synthetic compounds as a compromise to our planet.

Registration of Additional Genetics

On October 18, 2019, Avicanna received confirmation that SMGH has obtained registrations for 11 strains of psychoactive cannabis and 4 strains of non-psychoactive cannabis. Following such registration, SMGH has a total of 14 registered strains of psychoactive cannabis and 5 registered strains of non-psychoactive cannabis. SMGH, can commence production of products containing each strain of non-psychoactive cannabis that has been registered and, upon receipt of a quota with respect to each registered psychoactive strain, SMGH will be able to commence production of products containing each strain of its registered psychoactive cannabis strains. In addition, such registration enables SMGH to market seeds of such registered genetics and export propagation material (upon receipt of necessary approvals).

“Achieving this additional registration not only expands Avicanna’s genetic bank for commercial purposes but also reflects our commitment to work with a wide range of varieties that provide a new range of cannabinoids for our research and development projects. This registration will also enhance our capacity to continue improving and stabilizing high performance genetics as part of our breeding program,” said Avicanna’s Chief Agricultural Officer, Lucas Nosiglia.

About Avicanna

Avicanna is an Ontario corporation focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products through its two main business segments, cultivation and research and development.

Avicanna’s two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna’s cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).

Avicanna’s research and development business is primarily conducted out of Canada at its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto. Avicanna’s scientific team develops products, and Avicanna has also engaged the services of researchers at the Leslie Dan Faculty of Pharmacy at the University of Toronto for the purpose of optimizing and improving upon its products.

Avicanna’s research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics and Extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.

Stay Connected

For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email info@avicanna.com.

Cautionary Note Regarding Forward-Looking Information and Statements

Certain information in this press release contains forward-looking statements. Such statements include but are not limited to the ability of the Company to use its organic hemp in supplements and food products, the expectation that the receipt of the NOP certification will allow the Company to accelerate growth, that SMGH will cultivate 100% sun-grown USDA organic hemp and that SMGH will be able to commence production of its registered psychoactive strains of cannabis. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict, including the risk factors set out under the heading “Risk Factors” in the Company’s long form final prospectus dated July 8, 2019. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, unless and until required by securities laws applicable to the Company.

SOURCE Avicanna Inc.

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Avicanna Commences Trading on the OTCQX Market in the United States

Avicanna Commences Trading on the OTCQX Market in the United States

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS/

TORONTO, Oct. 15, 2019 /CNW/ – Avicanna Inc. (“Avicanna” or the “Company“) (TSX: AVCN) (OTCQX: AVCNF), a biopharmaceutical company focused on the development, manufacturing and commercialization of cannabinoid-based products, is pleased to announce that its common shares will commence trading today on the OTCQX® Best Market in the United States under the symbol “AVCNF”.

The OTCQX Best Market provides added service, value and convenience to U.S. investors, brokers and institutions seeking to trade Avicanna shares. OTCQX is OTC Markets Group’s premier market for established, investor-focused U.S. and international companies. To be eligible, companies must meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws, be current in their disclosure, and have a professional third-party sponsor introduction.

“Trading on the OTCQX Market represents a significant step in Avicanna’s capital markets strategy and journey to become an international leader in the biopharmaceutical industry. The achievement will allow us increased access to the U.S. capital markets and industry participants with extensive experience in evaluating pharmaceutical companies. Trading on OTCQX is also expected to provide a streamlined process for U.S. investors to transact in our securities and enhanced liquidity for all shareholders,” stated Setu Purohit, President of Avicanna Inc.

About Avicanna

Avicanna is an Ontario corporation focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products through its two main business segments, cultivation and research and development.

Avicanna’s two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna’s cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).

Avicanna’s research and development business is primarily conducted out of Canada at its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto. Avicanna’s scientific team develops products, and Avicanna has also engaged the services of researchers at the Leslie Dan Faculty of Pharmacy at the University of Toronto for the purpose of optimizing and improving upon its products.

Avicanna’s research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics and Extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.

Stay Connected

For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email info@avicanna.com.

Cautionary Note Regarding Forward-Looking Information and Statements

Certain information in this press release contains forward-looking statements. Such statements include but are not limited to the expected benefits from the commencement of trading on the OTCQX Market. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict, including the risk factors set out under the heading “Risk Factors” in the Company’s long form final prospectus dated July 8, 2019. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, unless and until required by securities laws applicable to the Company.

SOURCE Avicanna Inc.

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Avicanna (TSX: AVCN) Announces First Commercial Sale of the Pura Earth Derma-Cosmetics line of CBD Products

Avicanna (TSX: AVCN) Announces First Commercial Sale of the Pura Earth Derma-Cosmetics line of CBD Products

Pura Earth™ derma-cosmetics expected to be available in approximately 59 retail locations throughout Colombia later this month

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS/

TORONTO, Oct. 2, 2019 /CNW/ – Avicanna Inc. (“Avicanna” or the “Company“) (TSX: AVCN), a biopharmaceutical company focused on the development, manufacturing and commercialization of organic and sustainable plant-derived cannabinoid-based products, is pleased to announce the first completed commercial sale of its Pura Earth™ derma-cosmetics line of CBD products.

The sale was completed through Avicanna’s wholly owned subsidiary, Avicanna LATAM S.A.S., to Percos S.A. (“Percos”), Avicanna’s exclusive distributor of Pura Earth™ derma-cosmetics products in Colombia. The initial order from Percos included Avicanna’s Anti-Aging Treatment, Anti-Aging Serum, Clear Skin Treatment and Intensive Skin Conditioning Treatment, which are expected to be available for purchase in approximately 59 retail locations throughout Colombia later this month. Avicanna expects to launch the Pura Earth™ brand in additional international jurisdictions in early 2020.

The Pura Earth™ products were produced with Avicanna’s proprietary formulations using cannabidiol (“CBD”) isolate extracted by the Company’s majority owned subsidiary, Santa Marta Golden Hemp S.A.S. (“SMGH”), from cannabis grown and cultivated by SMGH in Santa Marta, Colombia.

“This initial commercial sale of our Pura Earth™ line of CBD products is a significant step towards validating Avicanna’s vertically integrated business model and demonstrating our ability to take a product from concept, through the development stage and into the commercialization stage.” stated Aras Azadian, Chief Executive Officer. “We conceptualized the Pura Earth™ brand, and then our scientists developed and optimized the final line of products, which contain CBD sourced directly from our subsidiaries, and we are now marketing these products to retailers and distributors. Most importantly, these are science based products that we have tested in human trials lead by Avicanna.”

“We believe that this initial sale of Pura Earth™ products marks a significant step towards commercialization and maturity of our company as we reach our goal of building a global organization focused on the development, manufacturing and commercialization of organic and sustainable plant-derived cannabinoid-based products.” concluded Mr. Azadian.

About Pura Earth™

Pura Earth™ is Avicanna’s derma-cosmetic line which utilizes a combination of purified cannabidiol (CBD) and other synergistic botanical ingredients designed to naturally regulate and nourish the skin. The Pura Earth™ products are formulated with CBD cultivated under organic and sustainable conditions by Avicanna’s subsidiary in Santa Marta, Colombia in the foothills of the Sierra Nevada Mountains. The Pura Earth™ product line was designed by Avicanna and optimized in partnership with the University of Toronto using Avicanna’s proprietary formulations. The Pura Earth™ product line is manufactured by Altea Farmaceutica S.A. (“Altea”) under Good Manufacturing Practices standards. In addition, Centro de Atención e Investigación Médica CAIMED S.A.S. is currently completing clinical studies on selected Pura Earth™ products in order to demonstrate their effectiveness with specific cosmetic endpoints, such as reduction of fine lines associated with aging, efficacy as a moisturizer for eczema prone skin, and reduction of sebum and redness attributed to acne.

About Avicanna

Avicanna is an Ontario corporation focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products through its two main business segments, cultivation and research and development.

Avicanna’s two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna’s cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).

Avicanna’s research and development business is primarily conducted out of Canada at its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto. Avicanna’s scientific team develops products, and Avicanna has also engaged the services of researchers at the Leslie Dan Faculty of Pharmacy at the University of Toronto for the purpose of optimizing and improving upon its products.

Avicanna’s research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics and Extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.

Stay Connected

For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email info@avicanna.com.

Cautionary Note Regarding Forward-Looking Information and Statements

Certain information in this press release contains forward-looking statements. Such statements include but are not limited to the number of retail locations at which the Pura Earth products are expected to be available and the timing for the launch of the Pura Earth products both in Colombia and internationally. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict, including the risk factors set out under the heading “Risk Factors” in the Company’s long form final prospectus dated July 8, 2019. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, unless and until required by securities laws applicable to the Company.

SOURCE Avicanna Inc.

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Avicanna (TSX: AVCN) to Open its Next Phase Extraction Facility in Colombia’s Free Trade Zone

Avicanna (TSX: AVCN) to Open its Next Phase Extraction Facility in Colombia’s Free Trade Zone

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS/

TORONTO, Sept. 30, 2019 /CNW/ – Avicanna Inc. (“Avicanna” or the “Company“) (TSX: AVCN), a biopharmaceutical company focused on the development, manufacturing and commercialization of organic and sustainable plant-derived cannabinoid-based products, is pleased to announce plans to build a new industrial scale 11,000 sq. ft (>1,000 square meter) cannabinoid extraction and final product manufacturing facility in a Colombian free trade zone near Santa Marta. This new facility is expected to provide for significant tax advantages and represents the third phase of the Company’s extraction strategy, building on its existing subsidiaries’ extraction and manufacturing operations in Colombia with current aggregate annual capacity of dried flower – post extraction and isolation – of approximately 100,000 kilograms.

The operation of the new facility will be conducted under a proposed new subsidiary (“Subco“), which will be 60% owned by the Company and 40% owned by Inmobiliaria Bondue S.A.S. (“Bondue“). The Company expects operations at the facility to commence in the second half of 2020.

The Company and Bondue have entered into a commercial lease agreement for space to house the facility, for an initial term of five years, located in one of Colombia’s free trade zones, which provides for significant tax advantages for activities that are conducted on the property.

Contributing to expanding Avicanna’s vertical integration strategy, the new facility will use cannabis sourced from Avicanna’s other majority owned Colombian based subsidiaries, Sativa Nativa S.A.S (“Sativa Nativa“) and Santa Marta Golden Hemp S.A.S. (“SMGH“), which are situated in Santa Marta. The extracts (active pharmaceutical ingredients) and final products produced at the facility are expected to be distributed internationally with additional tax savings.

Aras Azadian, Avicanna’s Chief Executive Officer, stated, “We near the final phase of our initial cultivation and extraction footprint and are analyzing and preparing for our future scale up with focus on efficiencies across all aspects of operations including CAPEX, OPEX, regulations and tax. This new facility’s proposed contribution to our API business, which benefits from its location in a free trade zone, makes it a fine example of Avicanna’s focus on efficiencies across all of its business units and our aim to ensure each unit, including the ones that are focused on cannabinoids as API’s, are both efficient profit centers and are competitive in a commodifying global landscape.”

Sativa Nativa and SMGH have licenses to cultivate, manufacture, extract and sell medicinal cannabis in Colombia. Sativa Nativa’s cultivation facilities include 50,000 square feet of low tech green house (shade house) and 20,000 square feet of customized high tech greenhouse space. SMGH has applied for Good Agricultural and Collection Practices (“GACP“) and organic certifications and operates cultivation facilities that include 200,000 square feet of low tech green house (shade house) space and 20,000 square feet of customized high tech greenhouse space. SMGH is currently expanding its green house operation by approximately 70,000 square feet, and Sativa Nativa is expanding its green house operation by approximately 50,000 square feet. The Company expects these expansion activities to be completed by the end of 2019.

In addition, through a joint venture with Sigma Analytical Services Inc., Avicanna is currently building a first cannabinoids-only, analytical laboratory and independent testing service in South America to meet Health Canada, European Pharmacopeia, US Pharmacopeia, and compliant to EU Good Manufacturing Practices (“GMP“) standards. This laboratory will provide a variety of large licensed producers to small scale partner farmers with a comprehensive suite of cannabis specific testing, which will include pesticides, heavy metals, residual solvents, aflatoxins, microbial, genotyping, and cannabinoid and terpene profiling. With technical transfer currently underway, the completion and launch of the laboratory services is expected to occur early in the first quarter of 2020.

In connection with the lease agreement mentioned above, Bondue, a “related party” for the purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“), is a party to the Lease Agreement and the execution thereof is considered a “related party transaction” for the purposes of MI 61-101. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Company is exempt from the formal valuation requirement in section 5.4 and the minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on sections 5.5(a) and 5.7(a), respectively, of MI 61-101 as the fair market value of the transaction, insofar as it involves related parties, is not more than 25% of the Company’s market capitalization.

About Avicanna
Avicanna is an Ontario corporation focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products through its two main business segments, cultivation and research and development.

Avicanna’s two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna’s cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).

Avicanna’s research and development business is primarily conducted out of Canada at its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto. Avicanna’s scientific team develops products, and Avicanna has also engaged the services of researchers at the Leslie Dan Faculty of Pharmacy at the University of Toronto for the purpose of optimizing and improving upon its products.

Avicanna’s research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics and Extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.

Stay Connected

For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email info@avicanna.com.

Cautionary Note Regarding Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Avicanna’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Avicanna’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include, but is not limited to, the expected size of the new facility, the location of the new facility, the proposed ownership of Subco, the expected date for the commencement of operations at the new facility, the tax advantages to be recognized by Avicanna, the source for cannabis to be processed at the new facility, the intent to distribute internationally, the expected completion dates for the ongoing expansion of the Sativa Nativa and SMGH facilities, the tests to be offered at the Company’s proposed laboratory and the expected completion and launch date for the Company’s proposed laboratory.

By identifying such information and statements in this manner, Avicanna is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Avicanna to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Avicanna has made certain assumptions.

Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: decreases in the prevailing prices for cannabis and cannabis products in the markets in which the Company operates; adverse changes in applicable laws; adverse changes in the application or enforcement of current laws, including those related to taxation; increasing costs of compliance with extensive government regulation; changes in general economic, business and political conditions, including changes in the financial markets and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; risks related to licensing, including the ability to obtain the requisite licenses or renew existing licenses for the Company’s proposed operations; dependence upon third party service providers, skilled labor and other key inputs; risks inherent in the agricultural and retail business; intellectual property risks; risks related to litigation; dependence upon senior management; and the other risks disclosed in the Company’s long form final prospectus dated July 8, 2019. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

Although Avicanna believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Key assumptions used herein are that the Company will be able to complete construction of the proposed facility in accordance with the current estimates of management and within current forecasts, Bondue will not be prohibited from incorporating a joint venture with the Company, there will not be significant changes to Colombian tax laws, there will not be any prohibition on importing cannabis from Sativa Nativa or SMGH into the free trade zone, the expansion of Sativa Nativa and SMGH’s facilities will not encounter any unexpected costs or delays, SMGH will continue to operate in the ordinary course and Sigma Analytical Services Inc. and the Company will not experience unforeseen cost overruns or delays in the completion of the proposed laboratory. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Avicanna does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Avicanna or persons acting on its behalf is expressly qualified in its entirety by this notice.

SOURCE Avicanna Inc.

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