Avicanna Reports Third Quarter 2019 Financial Results
/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, 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.
- 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.