The emergence of biopharmaceutical cannabinoids: From R&D through clinical translation

The emergence of biopharmaceutical cannabinoids: From R&D through clinical translation

Seminar plots strategy for reaping therapeutic benefits of cannabinoids, emphasizing that quality cannabis research is a must to avoid experimenting with millions of people

Cannabis is now a point of conversation in many different verticals: research, medical, health and business being among a long list of existing and emerging partners. With so much changing so very quickly, advancing expeditiously—while still taking the time to set a strategic course—should serve those in cannabis and cannabis-related industries well moving forward.

All such considerations were on offer at a symposium hosted by Avicanna Inc.—which conducts advanced cannabinoid research, manufactures a range of cannabinoid-based pharmaceuticals and therapeutics, and operates cannabis cultivation projects in Colombia—at the MaRS Discovery District in downtown Toronto on Mar. 25

How important is good science?

Dr. Christine Allen, chief scientific officer with Avicanna, is a strong believer in the need for good science, especially in the medical cannabis industry and especially now. The two most studied cannabinoids—CBD and THC—are beginning to be considered a “cure-all” for nearly every minor ailment or chronic condition, suggested Dr. Allen, also a professor with the Faculty of Pharmacy at the University of Toronto.

“Is this cause for concern? And does the scientific data and medical evidence support the current level of interest and investment in this area?” she asked. “These kinds of basic, difficult questions must be asked up front or the consequences can be catastrophic. If we don’t, we will be conducting an uncontrolled experiment on millions and millions of people,” she told attendees.

To support her growing concern about safety issues, Dr. Allen cited a recent study published in Obstetrics & Gynecology. Researchers posing as expectant mothers had surveyed 400 cannabis retail outlets and dispensaries operating in Colorado and learned the majority of them—69.2 percent—were recommending using various cannabis products to treat morning sickness during the first trimester. That total included a jaw-dropping 83.1 percent of dispensaries licensed for the sale of medical cannabis.


Dr. Christine Allen, chief scientific officer for Avicanna Inc. and professor and dean of the Leslie Dan Faculty of Pharmacy at the University of Toronto, addresses those gathered for the recent symposium at the MaRS Discovery District in downtown Toronto.

Perhaps more troubling, less than one-third of the dispensaries advised callers to talk to their health care providers despite documented adverse effects of THC on both perinatal outcomes and foetal neurodevelopment. “Just because a product has been approved for sale does not mean it is either safe or effective in treating certain medical conditions,” Dr. Allen argued.

This holds true for both medical and recreational cannabis. “Good news for the recreational market is good news for the medical market,” she said, “and bad news for one is bad news for the other.” Whether a person is dealing with a prescribed medicine, a topical lotion or a THC-infused lollipop, “ensuring the quality and safety of that product is primary,” she insists. “We must be responsible.”

Dr. Allen called for accurate product labelling, training and educating dispensers and consumers, and compiling product performance data to determine a product’s effectiveness.

What are some research quality concerns?

“If you want quick results [on cannabis clinical research], work on pain relief,” recommended Dr. Humberto Reynales, founder and executive director of CAIMED (Centro de Atención e Investigación Médica), a private clinical research organization in Latin America. If upper management is satisfied with longer-term work, “look at Parkinson’s, or MS (multiple sclerosis) or maybe a type of disease,” Dr. Reynales advised. Whatever the area of study, he stressed the need for “well-designed clinical studies to create strong evidence of the medical effectiveness of cannabis.”

Dr. Reynales reviewed some 1,400 scientific research papers indexed on PubMed—the online database of the U.S. National Library of Medicine—detailing the therapeutic effects of, and linkages between, cannabinoids and a number of medical conditions, including Alzheimer’s disease, amyotrophic lateral sclerosis (ALS), MS, cancer, diabetes, neuropathic pain, PTSD, schizophrenia and psychosis, and various degenerative diseases.

Cannabinoids have displayed a broad range of potential therapeutic benefits, but not all are useful and more research is needed in this area, he maintained. Other cannabinoids—such as CBG, CBC, THC and non-psychoactive THC-A should also be considered, he said. “But in more than 90 percent of the clinical trials, the cannabis used didn’t have the components at the levels the researchers originally thought it did,” he said.


Aras Azadian, CEO and director of Avicanna Inc., explains to symposium attendees that the cannabis industry is witnessing one of the largest paradigm shifts since the dot-com revolution.

Dr. Reynales also found that many of the trials conducted to date have been done with full spectrum rather than purified cannabinoids. This means some of the documented benefits could be the result of synergistic reactions among various cannabinoids, terpenes and other compounds—the so-called entourage effect.

Is Canada’s leadership in cannabis research slipping away?

“We are at a very unique moment in our industry, witnessing one of the largest paradigm shifts since the dot.com revolution,” commented Avicanna CEO Aras Azadian. “As the first G7 country to legalize, first medical and now recreational cannabis, Canada has established itself as a forerunner in the sector,” Azadian told attendees. However, the country is at a crossroads and risks “losing our position as global pioneers,” he warned.

“Our leadership position can be attributed to early access to financing and capital markets,” he explained, reporting that the Toronto Stock Exchange (TSE) and the Canadian Securities Exchange (CSE) were the first stock exchanges to approve cannabis listings. In 2018, Canadian cannabis firms raised $11.8 billion dollars, compared to just $627 million for all the other cannabis companies in the rest of the world, he reported.

Despite those positives, Azadian told attendees “too much of this capital has been invested into capex (capital expenditures) indoor facilities” to grow cannabis year-round in Canada’s inhospitable climate. “These factories and warehouses cannot compete on a cost per kilogram basis with cannabis grown outdoors in South America, for example,” he argued.

“The new low-tech greenhouses are also more environmentally sustainable and generate the same yields at a fraction of the cost,” Azadian added, claiming outdoor crops can be cultivated for $50 a kg compared to $2,000 per kg for some factory-raised cannabis. The bottom line: “No one cares where the components of a pharma product come from,” he said.

And while much money has been spent on buildings and facilities, not enough has been devoted to research and development and clinical development over recent years, Azadian maintained. “There has also been limited product offerings and prioritization of the recreational market,” he said.

Where is the collective understanding of cannabis?

From the perspective of the pharmaceutical industry, what we know about the [cannabis] plant “is still very primitive,” warned Samantha Watt, vice president of scientific affairs for Avicanna. “When we’ve seen other companies come out and try to synthetically mimic these compounds, more times than not, the results have not been all that great… You don’t know what you might be getting,” Watt noted during the panel discussion, Natural Cannabinoid Active Pharmaceutical Ingredients: From Seed to API.

There are also risks related to the genetic modification of plants. “If you are looking to acquire resins that are abundant in one kind of cannabinoid, you are redirecting the actual genetics and the carbon flow of the plant,” she explained. As a result, the plant could also be producing new toxins and other compounds that “we don’t know anything about yet, compounds that down the line could cause actual harm to the individual.”

Is the path forward plants or biotech?

A panel discussion with investment professionals found a split in support between plant-derived cannabinoids and biosynthetic compounds, although everyone agreed that future production of APIs from whatever source must be pure, clean, consistent and low cost. “It is cost prohibitive for any company to extract minor cannabinoids—CBN, CBG, CBD or THC—from plants,” argued David Kideckel, managing director of AltaCorp Capital Inc.’s health care and life sciences research group. Kideckel’s view is that biosynthetic production of cannabinoids is going to be “a very big deal.”

“We don’t view this as, necessarily, a competition between plant-derived companies and biosynthetics firms,” he told attendees. “Instead, we see them working together, side-by-side and enjoying a lot of synergies.”

Not everybody agrees. Alan Ridgway, a research analyst with Sprott Capital Partners, happily “threw a wrench” into the discussion. “By moving 100 percent into biotech, all of a sudden you are dealing with a synthetic molecule instead of a plant-derived molecule,” Ridgeway explained. “You lose your wellness aspect, you lose your supplement aspect and you lose your over-the-counter aspect.”

Instead, makers get drawn into the U.S. Food and Drug Administration and Health Canada bureaucracies, where they are subject to all the toxicology and preclinical study requirements despite, for example, “working with a CBD that came out of an algae or yeast or bacteria,” he said. Although there may be some minor biosynthetic cannabinoids that potentially may be “important drugs on the pharma side,” Ridgeway said he has avoided recommending them as plays to investors.

That said, he noted he is excited with new opportunities on the genetics front, especially with the passage of the U.S. Farm Bill. “You are going to see a number of genetics and breeding companies pushing very hard down the path to produce high-CBD hemp plants,” he predicted. Although THC content will be limited to less than 0.3 percent, Ridgeway expects to see the development of hemp strains containing high concentrations of all the other cannabinoids, including trial plantings of a 16 percent CBG strain and a 10 percent CBC stabilized strain.

This is not the industrial hemp grown in Canada, Ridgeway cautioned. “Five to 10 years down the road, Canadian producers are going to have to compete on price with the low cost, outdoor hemp producers that will be supplying the cannabinoid ingredients in consumer wellness products, topical lotions and over-the-counter products,” he said.

“The current weed shortages will be temporary,” Kideckel predicted. “Instead, there is going to be oversupply and a lot of price suppression.” As production continues to kick up to meet demand, he noted the conversation will shift to product branding, which could be tough for Canadian cannabis companies trying to out-market retailers and brands in, say, California, and facing Health Canada’s “overly restrictive” marketing and packaging rules.

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26 Million Epilepsy Patients Could Benefit from Medical Marijuana

26 Million Epilepsy Patients Could Benefit from Medical Marijuana

Epilepsy has been around for thousands of years, but doctors still don’t have a reliable medication for it. In fact, roughly 30-40 percent of today’s epilepsy patients don’t respond to traditional medications, according to Dr. Amza Ali – a neurologist and neurophysiologist who specializes in epilepsy.

Based on that percentage, approximately 26 million patients with epilepsy could benefit from an alternative medication like medical marijuana. Those include people who were born with epilepsy as well as people who develop it after suffering a stroke, trauma, certain infections or other conditions, Dr. Ali noted during a recent conference in Toronto hosted by the cannabis R&D, cultivation and manufacturing company Avicanna.

Using medical marijuana to treat epilepsy isn’t new. Researchers have known about cannabis’ potential to combat seizures for centuries. One of the earliest case studies involved Irish physician William O’Shaughnessy, who administered a cannabis tincture to an infant with epilepsy in the early 19th century.

“A single drop of the spiritous tincture…was placed on the child’s tongue at 10 PM,” Dr. O’Shaughnessy wrote during the experiment. “No immediate effect was perceptible, and in an hour and a half, two drops more were given…In this drowsy state, she continued for four days, totally free from convulsive symptoms in any form.”

When the seizures returned on the fifth day, O’Shaughnessy adjusted the dosage of the tincture and the infant’s condition improved dramatically. He noted that “the child is now in the enjoyment of robust health and has regained her natural plump and happy appearance.”

So there’s no shortage of anecdotal evidence to suggest that cannabis can treat epilepsy. The problem is that prohibition has prevented researchers from pursuing the rigorous studies needed to prove that medical marijuana is a safe and effective treatment. Safety is particularly important when dealing with epilepsy since many patients are children.

‘Cannabis and its derivatives will eventually find their place’ in epilepsy treatment

Perhaps the most famous child patient is Charlotte Figi – a child with a severe form of epilepsy called Dravet Syndrome. By the age of five, she was unable to walk, talk or eat because she was having 300 seizures a day. Every medication had failed, so the Figi family turned to a controversial treatment: the non-intoxicating cannabis compound CBD. Almost immediately after Charlotte tried CBD, the number of seizures she experienced plummeted drastically.

Some look at Charlotte’s story and wonder why we need to debate the issue any further since cannabis has clearly helped her. But as Dr. Ali noted, it is “difficult to endorse usage of a substance not standardized nor available in a proper medicinal form.”

Roughly 60 percent of patients with epilepsy and 63 percent of parents of young patients in Australia say they don’t know which way to administer medical marijuana is best, according to a nationwide survey conducted in 2017. Right now, people with epilepsy could treat their condition by smoking a joint, using a tincture or eating an infused cookie. There are also cannabis sprays, skin lotions, suppositories, pills and other methods of delivery that could be more or less effective for managing seizures. So there’s no standard means to consume cannabis, let alone a standard dosage for patients with epilepsy.

On top of that, researchers are wary of recommending medical cannabis for epilepsy because they aren’t sure why it works. Dr. Ali noted that CBD appears to help patients, but researchers haven’t figured out how the drug’s interaction with the human brain and nervous system is suppressing seizures. That means researchers aren’t sure if CBD alone is helping or if it needs to be taken along with conventional medications.

Meanwhile, some researchers are worried that cannabis is merely the latest in a long line of false hopes for epilepsy patients. As the 19th century physician Sir Edward Sieveking once said, “[T]here is scarcely a substance in the world, capable of passing through the gullet of man, that has not at one time or another enjoyed a reputation for being an anti-epileptic.”

Sieveking wasn’t addressing cannabis specifically when he said that, but his famous quote has been used to pour cold water on epilepsy studies for over 160 years as researchers have tried to prove that unconventional treatments like mistletoe, turpentine, and even dehydration can cure seizures. So cannabis researchers will have to tackle over a century of cynicism in order to prove that CBD specifically or medical marijuana in general can treat epilepsy.

For his part, Dr. Ali believes that cannabis will be recognized as a legitimate treatment for epilepsy one day, but it will never become the first-line of defense against seizures. It will always be a second or third option that will only be used when conventional treatments prove ineffective.

“Cannabis and its derivatives, in isolation or as combinations, will eventually find their place but should not be viewed as a replacement for already efficacious treatments,” he said at the Avicanna conference.

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Avicanna proudly hosts symposium on the emergence of biopharmaceutical cannabinoids

Event to examine knowledge gaps and opportunities for robust scientific research into cannabinoid applications and their role in the evolving landscape.

TORONTO, March 5, 2019 /CNW/ – Avicanna Inc. (“Avicanna”), will host its second annual and first Canadian educational symposium, The Emergence of Biopharmaceutical Cannabinoids – From Research & Development to Clinical Translation, in Toronto on March 25, 2019. The exclusive, invitation-only event for Canadian and international clinical and research experts, industry experts and healthcare professionals, will be held at the MaRS Centre, the world’s largest innovation hub.1

The symposium will address opportunities as well as current gaps within “medical cannabis” research, including safety and toxicology concerns, as well as other challenges in the rapidly evolving industry.

The agenda will also cover recent and prominent developments in the biopharmaceutical cannabinoid research field, an overview of their role as active pharmaceutical ingredients, their challenges in formulation development and their potential role in several therapeutic areas.

Additionally, the event will also highlight Avicanna’s ongoing studies in a variety of therapeutic areas, including oncology, neurology, pain management and dermatology, which are being conducted in collaboration with a number of leading academic health science institutions in Canada and internationally.

“This event is a significant opportunity to educate and inform investigators, clinicians and industry experts on the evolving landscape of the basic science of cannabinoid research and its clinical applications, as well as the developing Canadian and international regulatory and industry environments. Furthermore, our goal is to be a catalyst in the exchange of information and drive collaboration among the communities involved in developing and delivering evidence-based cannabinoid solutions,” says Dr. Christine Allen, Avicanna’s Chief Scientific Office and Professor in the Leslie Dan Faculty of Pharmacy at the University of Toronto, and Symposium Chair.

The complete agenda can be viewed at: www.avicanna.com/symposium.

About Avicanna

Avicanna is a Canadian biopharmaceutical 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 research and product development activities are primarily conducted out of Toronto, Canada including its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Torontoand the University of Toronto’s Faculty of Pharmacy. Avicanna’s scientists and researchers collaborate on the optimization and improvement of Avicanna’s products ranging from cosmetics to phyto-therapeutics to pharmaceutical preparations.

Avicanna’s vertically integrated and international operations also include its two majority owned cannabis cultivation subsidiaries Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia.

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.

To learn more about Avicanna, please visit www.Avicanna.com.

1 https://www.marsdd.com/about/story/ 
http://placematters.marsdd.com/

SOURCE Avicanna Inc.

For further information: media@avicanna.com.

The cannabis industry leader in biopharmaceutical advancements

Avicanna CEO Aras Azadian explains how the company plans to position itself at the forefront of the cannabis industry through its R&D and cultivation activities.

Avicanna aims to establish itself as a leader in the global medical cannabis industry through its product discovery and development processes, intellectual property portfolio, strategic relationships, and cultivation infrastructure. Avicanna’s team believes that its two main business segments, namely research and development or R&D and cultivation, strategically position Avicanna to be a front-runner in the development, manufacturing and commercialisation of plant-derived cannabinoid-based products and extracts throughout North America, Latin America, Europe and Asia.

Avicanna intends to capitalise on the nexus between both business segments, where the intellectual property gained from its R&D efforts is used to inform and improve the products of its cultivation and extraction activities, while the raw materials from its cultivation and extraction efforts can be used to further its R&D initiatives. Avicanna anticipates, in both cases, to benefit from a reduced cost compared to what would be incurred through purchasing such intellectual property or raw materials, as the case may be, from third parties.

Additionally, Avicanna has a growing network of world-class strategic relationships, including the University of Toronto and other leading Canadian and international academic and clinical institutions. Avicanna believes these to be best-in-class and major vehicles for the evolution of the cannabis industry.

The centre of an industry, the epicentre of science

In addition to be being situated in the centre of the emerging cannabis industry, Avicanna benefits from being the only cannabis company that is in the MaRS Discovery District of Toronto. Headquartered in JLABS@Toronto, which is a collaboration among Johnson & Johnson Innovation, the University of Toronto, MaRS Discovery District, Janssen Inc., MaRS Innovation, and the Government of Ontario, JLABS is located in an urban innovation district uniquely placed to lead change. It brings together educators, researchers, social scientists, entrepreneurs and business experts under one roof designed to bridge the gap between what people need and what governments can provide, which allows entrepreneurs access to corporations, investors, mentors, university institutions and labs to test their concepts.1

JLABS@Toronto provides access to a 40,000 square foot facility that includes lab space, state-of-the-art equipment, and access to scientific, industry and capital funding experts. JLABS operates on a ‘no strings attached’ model of incubation accelerators that do not take any equity or rights to products, revenue or control.

In the heart of Canada’s largest and the world’s most diverse city, Avicanna is strategically located among the major academic and medical research centres in Toronto, including the University of Toronto, UHN, SickKids, Sinai Health System, St. Michael’s Hospital, Sunnybrook Health Sciences Centre, and the Centre for Addiction and Mental Health, the majority of which are clinical partners of Avicanna.

Sustainable from the ground, up

Avicanna’s R&D and cultivation activities are focused on the development of four key products – plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics, and extracts – with a goal of eventually having its products manufactured and distributed through various markets including Canada, USA, Colombia, Mexico and the EU.

Sativa Nativa and Aurum, Avicanna’s two majority-owned subsidiaries in Colombia, are both focused on low-cost, sustainable and commercial cannabis cultivation. Both companies are located in Santa Marta, Colombia, in the foothills of the Sierra Nevada mountains. The location offers 12 hours of daily sunlight year-round, while the tropical weather of Santa Marta and a unique micro-climate in the Sierra Nevada mountains provide optimal conditions for the cultivation of a diverse range of cannabis genetics.

A vow of responsibility

In addition to Avicanna’s positioning as a strictly medical cannabis company with a dedication to scientific vigor and research, its operations related to supply chain and cultivation are also revolutionary to the cannabis industry. Dedicated to environmental preservation, Avicanna’s cultivation projects cultivate 100% sun-grown, sustainable cannabis, free of harmful pesticides and herbicides. Implementing best industrial cultivation and manufacturing practices such as GAP and GMP, Avicanna promotes a living soil so its plants grow happy and healthy.

Naturally cultivating cannabis outdoors reduces its environmental impact by minimising the use of electricity, which releases 25 times less carbon into the atmosphere than does indoor growing. The use of electricity when compared to indoor cultivation projects, which typically utilise 1,000-watt, high-pressure, sodium bulbs, can have a larger environmental impact than growing other crops. And that impact could multiply as the industry emerges. Over the next five years, legal and illegal growers are expected to increase their energy consumption by as much as 162%, generating 1.8 million tons of carbon emissions annually.2

Additionally, the use of harmful pesticides and herbicides required for indoor cultivation projects in less-than-ideal climates offers additional negative impact on the plant and for the consumers. SC Labs, a California cannabis testing company, finds three to four in ten samples examined contain traces of pesticides that shouldn’t be used on marijuana. Lab president Josh Wurzer told Bloomberg News that one of these even transforms into a poisonous gas when ignited. This allows for more weed to grow bigger and quicker. States have been slow to catch up – even California, which has had a medical cannabis programme in place for two decades, is only now planning to regulate pot growers’ pesticide use.3

In contrast, both of Avicanna’s operations, Sativa Nativa and Aurum, are federally licensed and operating under GAP standards. Sativa Nativa is focused on harnessing the optimal weather conditions of Colombia to operate an economical, environmentally sustainable, and socially responsible cultivation project, while Aurum enjoys all of the same benefits for low-cost cultivation and intends to operate an economic, environmentally sustainable, organic and socially responsible cultivation project.

Access to cost-efficient energy sources and construction labour allow for affordable expansion and production. Both companies also have easy access to the local Santa Marta port which is expected to provide low-cost shipping for export. Vertical integration has been a key milestone in ensuring sustainable practices are maintained and that the most environmentally friendly, sustainable and safe materials are involved in the production of Avicanna products.

Avicanna’s mandate

Environmental sustainability
  • Sun-grown, organic cultivation utilising natural condition
  • Free of harmful pesticides, herbicides and harsh chemicals
  • Biodiversity conservation: strong opposition to deforestation and support for natural wildlife and aquatic ecosystem preservation.
Education

• Hosting international medical symposia and events
• Accredited continuing medical education
• Patient education and counselling tools.

Regulation

• Federally licensed by the Colombian Government to cultivate cannabis
• R&D and clinical development programme with federal approval from the Canadian Government.

Corporate citizenship

• Community and infrastructure and development programmes in Colombia, including co-operative farming, micro-financing and training programmes.

The need for data-driven products

Derma-cosmetics

With the potential to become one of the fastest-growing segments, the cannabis industry is rapidly evolving. Companies are launching products every day and skincare is no exception.
With skin being the largest organ in the human body, its upkeep is one of the first steps in maintaining its overall wellbeing. As a first line of defence, the skin exists as a layered system with the outermost layer serving as a protective barrier and port for recognising sensations such as pain, itch and temperature. Exposure to the elements can cause dullness, dryness, itching and ageing where CBD has a profound role to play.

It all started when Avicanna’s R&D team realised that CBD had great potential to naturally improve the integrity of the skin. Through extensive research they discovered that CBD optimises natural cell function and provides regenerative and anti-ageing effects. Pura Earth products are formulated with 100% organic cannabis which is naturally sun-grown in the Sierra Nevada region of Colombia, under organic, sustainable and responsible conditions with the support of the local artisan farmers. With a mission to integrate skincare into our generation’s ideal of health and wellness, Avicanna believes it is imperative to nourish and nurture the skin as one would their body.

Pura Earth’s R&D team was focused on high-end cosmetics with formulations that are supported by research data as a way to differentiate the product line from those of its future competitors. It is a novel skincare product line utilising a combination of natural CBD, hemp oil and other key natural ingredients designed to provide an overall regulatory effect, nourishment and rejuvenation for healthier and more radiant skin.

These products are formulated to maintain and improve the health and beauty of the skin and will be marketed as beauty treatments, moisture and protection products, and specialised care. Pura Earth will be available in retail markets in 2019, with expected brand launch in Colombia in the second quarter of 2019, Mexico and the EU in the third quarter of 2019 and other international markets by the end of 2019.

Bridging the gap between the consumer and education

Phyto-therapeutics

Currently, several countries and many states in the United States have legalised cannabis for medical purposes and allow products such as oil tinctures, creams, capsules and patches in various ratios of THC and CBD. In these jurisdictions, patients must get approval from healthcare professionals to use cannabis for medical purposes.

These approvals from the healthcare professionals are not prescriptions in the traditional sense where the products have been approved and are regulated as medicinal drugs, but rather the healthcare professionals are giving authorisation to the patients to use cannabis for medical purposes in certain circumstances. Some jurisdictions have an approved list of conditions for which healthcare professionals must assess the patient before granting their authorisation for the patient’s access to cannabis.

Pura Elements was created in the belief that all people deserve an opportunity to live a life of health and wellness. Cannabinoids have been used, by many cultures, in the treatment of a variety of conditions for thousands of years. The rest of the world is finally recognising what these cultures have long known in terms of harnessing the natural benefits of cannabinoids as a means of improving health and wellness.

The line offers several delivery mechanisms including transdermal patches, topical creams, gels, oral tablets, oral capsules and sublingual sprays all designed for different uptake and delivery. The products are also offered in various THC and or CBD ratios and doses, providing consumers tailored and consistent delivery of cannabinoids.

Additionally, the product line has been formulated and optimised in collaboration with Avicanna’s scientists, who have utilised in vitro and in vivo testing to optimise delivery and dosing. This in turn has elevated Pura Elements to being perhaps the most advanced general cannabinoid lines available globally.

With Pura Elements, Avicanna believes in using nature’s elements and complementing them through scientific acumen for targeted and specific utility. Utilising advanced R&D capabilities allows the team to collect evidence on cannabinoids through rigorous scientific testing and data accumulation. The objective is to ensure maximum efficacy, safety and consistency within our most innovative and advanced drug delivery mechanisms.

Avicanna’s dedication to science represents a benchmark of the highest quality, setting an unprecedented cannabis industry gold standard. Through the calmness, relief and primordial purity of lotus petals, Pura Elements brings you back to yourself.

Dedicated to indication-specific naturally derived pharmaceuticals

Here, Avicanna’s focus is evidence-based and indication-specific pharmaceutical products designated for FDA and Health Canada-approved drug identification numbers (DINs).

With the belief that healthcare professionals are the gatekeepers of the new medical solution and their support will be the key to providing naturally derived cannabinoid solutions to the public, Avicanna’s team has dedicated the last three years to R&D and product development of indication-specific pharmaceutical products backed by scientific acumen and clinical data.

The team further recognised that for a product to be considered a therapy and to be recommended by healthcare professionals, it would be important to provide data collected and analysed from well-run clinical studies to all relevant stakeholders – patients, healthcare professionals, payers and regulators.

Those two understandings form the basis of Avicanna’s foundational concept – the development of novel cannabinoid therapeutic products backed by clinical research data. A strict dedication to medical products and the leadership positioning in the medical cannabis industry in Canada allowed Avicanna to attract key skilled personnel and collaborators who have assisted the company in developing its mandate. These personnel include scientists, clinicians, strategic business advisors, and biopharmaceutical industry senior managers. This positioning also attracted interest from respected academic and clinical research institutions looking to partner with Avicanna on clinical and research development initiatives.

Fostering key partnerships

University Health Network: The largest such research organisation in Canada and North America, ranking first in Canada for total research funding, It was named Canada’s top research hospital by Research Infosource in 2015, 2016 and 2017.4,5UHN researchers provide services pertaining to the analyses of certain product formulations, including membrane permeability studies and analytical testing on up to five products comprising of transdermal patches and topical creams. The products are being analysed for THC, CBD and their acids.

University of Toronto Faculty of Pharmacy: The birthplace of insulin and stem cell research, U of T is commonly ranked as the best Canadian university, according to various major publications.6

Projects are performed out of the Christine Allen Research Group (CARG) with direct oversight by Dr Christine Allen herself, who has recently joined Avicanna’s team as chief scientific officer. Her work, among many various projects, includes physicochemical characterisation and analysis of our processes and of our products containing various concentrations of THC and/or CBD and laboratory services to optimise and improve their performance. These services help us improve and optimise a number of aspects of our products and processes.

The Hospital for Sick Children (SickKids): Affiliated with the University of Toronto, SickKids is Canada’s most research-intensive hospital and the largest centre dedicated to improving children’s health in the country. As innovators in child health, SickKids improves the health of children by integrating care, research and teaching.7 Phase II and III clinical studies to explore the safety, tolerability and efficacy of our topical product containing a pharmaceutical formulation of CBD on patients with a rare dermatological indication.

Avicanna Announces Filing of Preliminary Prospectus

TORONTO, Jan. 21, 2019 /CNW/ – Avicanna Inc. (“Avicanna” or the “Corporation“), a company focused on the eventual development and manufacturing and commercialization of plant-derived cannabinoid-based products, is pleased to announce that it has filed its preliminary prospectus (the “Prospectus“). The Prospectus was filed with the securities regulatory authorities in each of the provinces of Alberta, British Columbia and Ontario (the “Qualifying Jurisdictions“).  A copy of the Prospectus is available under Avicanna’s profile on SEDAR at www.sedar.com.

The Prospectus was filed in connection with the anticipated distribution of 540,484 common shares and 270,242 common share purchase warrants of Avicanna issuable upon the exercise or deemed exercise of special warrants of the Corporation (the “Special Warrants“). The Special Warrants were issued on December 13, 2018 at a price of $8.00 per Special Warrant to purchasers in the Qualifying Jurisdictions, and the United States and certain other jurisdictions pursuant to an agency agreement dated December 13, 2018 (the “Agency Agreement“) entered into among the Corporation and Sprott Private Wealth LP (“Sprott“), as lead agent on behalf of a syndicate of agents, including Paradigm Capital Inc. and Interward Asset Management Ltd. (collectively, with Sprott, the “Agents“).

Each Special Warrant will be automatically exercised, without payment of additional consideration into one common share in the capital of the Corporation (each, a “Common Share“) and one half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant“) at 5:00 p.m. (Toronto time) upon the earlier of: (a) the date that is 120 days from December 13, 2018; and (b) the third business day after the issuance of a receipt for a final prospectus qualifying the distribution of the Common Shares and Warrants.

Each Warrant, when issued, shall entitle the holder to acquire one Common Share at a price of $10.00 until December 13, 2020, subject to acceleration such that, if the Common Shares are listed and posted for trading on a stock exchange and the volume weighted average price of the Common Shares on such stock exchange is equal to or greater than $12.50 for a period of 10 consecutive trading days, the Corporation may at its option elect to accelerate the expiry of the Warrants by providing notice to the holders thereof, in which case the Warrants will expire on the 30th calendar day following delivery of such notice.

The Prospectus is currently being reviewed by the Ontario Securities Commission (“OSC“) and has not yet became final for the purpose of the distribution or sale of securities, and there can be no assurance that the OSC will issue a receipt for the Corporation’s final prospectus.

About Avicanna

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

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 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 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.

Advisories

There can be no assurance that the OSC will issue a receipt for a final prospectus qualifying the distribution of the securities underlying the Special Warrants. The Prospectus contains important information relating to Avicanna, the Special Warrants and the securities issuable upon conversion thereof and is still subject to completion or amendment. For more information, readers should consult the Prospectus, including the risk factors described therein. There will not be any sale or any acceptance of an offer to buy the Special Warrants pursuant to the Prospectus. No securities regulatory authority has either approved or disapproved the content of this release.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

Forward Looking Information

This release contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the meaning of applicable United States securities legislation (collectively, “forward-looking statements“), which reflects management’s expectations regarding the Corporation’s future growth, results from operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects and opportunities.  Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements.  These forward-looking statements include, among other things, statements relating to: receipt for the final prospectus of the Corporation qualifying the distribution of the securities underlying the Special Warrants and consequential conversion of the Special Warrants and the Corporation’s business plans and outlook. Forward-looking statements are not a guarantee and are based on a number of estimates and assumptions management believes to be relevant and reasonable. For more information on these risks please see the Prospectus.

SOURCE Avicanna Inc.

Avicanna Provides Details About the Santa Marta Golden Hemp Transaction

TORONTO, Aug. 21, 2018 /PRNewswire/ – Further to the release dated August 16, 2018 (the “Press Release”) concerning the acquisition of a sixty percent (60%) interest in Santa Marta Golden Hemp S.A.S. (“SMGH”), Avicanna Inc. (“Avicanna” or the “Company”) is pleased to set out the details surrounding the acquisition of the SMGH shares and relationship with El Grupo Daabon (“Daabon”).

Avicanna has been working with the key stakeholders in Daabon since December 2017 to define the terms of the parties’ relationship in managing SMGH’s cannabis licenses. Avicanna and SMGH came to a non-binding agreement in January 2018 for the acquisition by Avicanna of sixty percent (60%) interest in SMGH and the parties began working with each other for the financing and operation of SMGH since that time.

The parties executed a binding agreement on March 5, 2018 that was conditional upon several items, including the financing of the first phase of build out and registration of land with the Colombian government.

The last approval relating to the binding agreement was granted on August 16, 2018, which allowed Avicanna to issue the Press Release.

SMGH constitutes a joint venture arrangement between Avicanna and Daabon in which Avicanna is required to provide financial and non -financial contributions, most of which Avicanna commenced in early 2018, including:

  • Finance phase 1 build out of the SMGH property and facilities;
  • Preparing the property for everything required for operations, quotas and construction;
  • Contributing sufficient capital for construction and operating personnel;
  • Provision of oversight and management of SMGH;
  • Supplying of extraction and analytical technologies and related intellectual property to SMGH;
  • Supplying of genetics and biological intellectual property to SMGH; and
  • Shares equivalent to 11.2% of the total issued and outstanding common shares of Avicanna as at April 30, 2018.

Stay Connected

For more information about Avicanna Inc. and Santa Marta Golden Hemp S.A.S., visit www.avicanna.com , call 1-647-243-5283, or email info@avicanna.com.

About Santa Marta Golden Hemp S.A.S.

SMGH is a federally licensed and vertically integrated cannabis company based in Santa Marta, Colombia. Utilizing ideal environmental conditions as well as local organic cultivation expertise, SMGH aims to be one of the largest and most sustainable cannabis cultivation projects in the world. As an Avicanna subsidiary, SMGH leverages the intellectual property and advanced scientific know-how of Avicanna’s team to execute its business model which includes cultivation, extraction, manufacturing, analytical testing and commercialization of its final products. With the support of global organic leaders, Grupo Daabon, SMGH is dedicated to environmental preservation, SMGH will cultivate 100% sun grown certified organic cannabis. Implementing Good Agricultural Practices (G.A.P) and Good manufacturing Practices (G.M.P)

About El Grupo Daabon

The Grupo Daabon is a pioneer and leader in the production of sustainable and organic ingredients in South America with headquarters located in Santa Marta, Colombia. The family-owned company was founded in 1914 and has grown to become the largest organic agriculture company in South America, employing well over 3000 with operations across 4 continents and sales in over 20 countries. Its operations include cultivation, the largest palm oil refinery in the Americas, production of glycerin and bio-fuels, construction, port management and duty-free zones. Daabon is also a global leader in production of organic palm oil, bananas, coffee, and avocado with over 40 organic and sustainability certificates world-wide including rain forest alliance, the first palm oil company to be certified RSPO and has been awarded as most sustainable producer of palm oil in the world for the last several years by SPOTT.

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 brands Pura Elements™ and Pura Earth™, Avicanna is focused on building an international distribution network through its vertically-integrated business model and strategic licensing models. Utilizing the experience of its senior scientists, 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.

Forward Looking Statements

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.

SOURCE Avicanna Inc.

Pharmaceutical giants are sidestepping US marijuana restrictions to research cannabis-based drugs

  • Federal policies restricting marijuana research have made it difficult to study marijuana and produce cannabis-based drugs — but that isn’t stopping pharmaceutical companies from doing it.
  • Some are researching and developing drugs made with marijuana compounds in labs just north of the border. Others are growing the raw materials for their products in South America.
  • Although only a single cannabis-based drug is currently approved for use in the US, others are likely on their way.
  • Some will appear first in marijuana dispensaries in states where marijuana has been legalized; others will await approval from the US Food and Drug Administration (FDA).

Getting marijuana-based drugs approved in America is no easy task.

According to the US Drug Enforcement Administration, cannabis has no medical use. Until two years ago, all domestic research on the drug had to rely on rotting samples from a single, well-secured weed facility at the University of Mississippi. Today, researchers who want to grow marijuana have to apply for a license in a convoluted process that can take years. Only a single cannabis-based drug has been approved by the Food and Drug Administration to date — and it contains CBD, a non-psychoactive compound in marijuana that is not responsible for its characteristic high.

But as researchers are only beginning to uncover, marijuana — with its roughly 400 compounds, each of which is potentially responsible for a distinct effect — has awide variety of potential medical applications, from relieving pain and nausea to reducing the symptoms of rare diseases like childhood epilepsy. And these benefits are emerging just as scientists are uncovering huge downsides to traditional medications like opioids.

Some are lending their support to Canadian marijuana startups growing their products in countries like Colombia; others are applying for permits to import marijuana extracts like CBD and THC; still others are obtaining approval in Europe first and hoping that validation gives them an edge during the difficult FDA approval process.

Cannabis startups are among a handful of ‘resident’ startups at the Johnson & Johnson incubator in Canada

At Johnson & Johnson’s JLabs in Toronto, scientists and entrepreneurs follow a gleaming steel road towards shared workspaces separated only by clear glass walls. Pops of bright blue honeycomb print and creative lighting imbue the center with a sense that change is right around the corner.

It was here, roughly a year ago, that the pharmaceutical giant welcomed the first marijuana startup into its JLabs Innovation network, an ecosystem designed to give budding companies access to the resources and leadership they need to get off the ground. JLabs accepted a second cannabis company, Vapium Medical, as a resident about three months later.

The first was Avicanna, a Toronto-based biotech company focused on medical cannabis.

As part of the JLabs ecosystem, Avicanna gets access to lab space, a Johnson & Johnson mentor, and the recognition they need to recruit top-notch scientists and researchers. In exchange, Johnson & Johnson get a chance to work with an innovative company and invest if and when they see fit.

“Partnering with JLabs allowed us to obtain a lot of credibility,” Aras Azadian, Avicanna’s CEO, told Business Insider. “It’s also a great atmosphere to work in and to bring others in.”

Before getting accepted as a JLabs resident (after applying for the third time), Avicanna was a fledgling startup, Azadian said. But that changed when the company joined JLabs.

In just over a year, the company went from a staff of five to 17 in Canada and 30 in Colombia, where the company grows and harvests the marijuana that goes into its products — which thus far include a series of patches, creams, and sprays that will be sold under the Pura Elements brand. Azadian said he expects a selection of those products to be available in dispensaries in California, where marijuana is legal, by the end of this year.

Azadian says that while Johnson & Johnson isn’t yet invested financially in Avicanna, just being in the space significantly raises the chances that the pharmaceutical giant might eventually take that leap.

“Since we’re part of their ecosystem it’s much more convenient to cooperate and collaborate — a lot more so than to start working with new company,” Azadian said. “I think we’ve positioned ourselves well to be a good fit for them.”

Avicanna’s initial product lineup will go to US dispensaries in states where marijuana is legal, like California.

But Azadian is hopeful that the company’s research with scientists at the University of Toronto, including tests in cells and mice and eventual clinical trials in humans, will bolster their next line of products, which are geared towards treating medical conditions like eczema. Avicanna also hopes to eventually launch sustained-release capsule formulations aimed at pain relief.

“I think with our approach — strictly looking at this from a medical perspective with a team of some of the best scientists on board — I’m excited to see where this goes,” Azadian said.

https://www.businessinsider.com/marijuana-drugs-fda-pharma-studying-marijuana-2018-3

3 Cannabis Companies Discuss Emerging Market Opportunities

Key players in the cannabis industry shared their views on emerging market opportunities in the sector at the Benzinga Cannabis Capital Conference in Toronto. Common themes among the execs were the importance of finding good partners, focusing on diversity and expanding brands.

Supreme Cannabis Company President Nav Dhaliwal

  • “The company focuses on endeavors on a domestic and global level. Medical is a very international market; we see us [as] having a certain advantage long-term.”
  • “Foreign investment is a commodity and will be treated that way in pharmaceutical and medical markets. You have to be creative about how you are going to market and compete with other markets.”

Pistil + Sigma CEO Rebecca Gasca

  • “I have always been a rule breaker. Once I learned I could rewrite the rules, I became a creator.”
  • “For opportunities, it is crucial to actually look at cannabis as a whole plant and something that can provide an array of products and supplements.”
  • “This is a global market without regulation. So you have to be leery about who you work with and who you partner with.”
  • “From a risk standpoint, companies need to look from a broad perspective. Countries are increasingly branding protection to European countries. If you’re not considering hemp, you’re thinking of everything completely wrong. It’s a very broad conversation that needs to happen.”

Avicanna CEO Aras Azadian

  • “The European market is potentially the biggest one. We take a strategic approach per country and aim to focus on competitive advantage.”
  • “Opportunities are always about inherent risks. Cultivation, construction, large infrastructure. [It’s] all about having business plans and de-risking it and being focused.”
  • “Especially with medical markets on an international platform, partners invest alongside you, giving lots of opportunities and pitches. A company should see the alignment in term of risks and capital investment and work toward the same goal. But it is a new industry with lots of risk, so foreign relations is very important and provides you the advantage to make your company a first mover.”

Avicanna Acquires Majority Interest in Colombian Cannabis Cultivator

PARTNERS WITH COLOMBIAN MULTIBILLION DOLLAR AGRICULTURAL COMPANY, DAABON; RECEIVES LEAD ORDER IN GOING PUBLIC FINANCING FROM DAABON

TORONTO, Aug.16, 2018 /CNW/ – Avicanna Inc. (“Avicanna” or the “Company”) is pleased to announce it has acquired a sixty percent (60%) controlling interest in Santa Marta Golden Hemp S.A.S. (“SMGH”), a company that has been issued a full suite of medical cannabis licenses in Colombia. The other substantial holder in SMGH is controlled by El Grupo Daabon (“Daabon”), a global industrial scale organic agricultural company based in Colombia. Daabon has also committed to lead Avicanna’s IPO financing and subscribe for up to 20% of the offering.

This acquisition represents a significant milestone for the cannabis industry, being the first in which a major multinational agricultural corporation has taken a position in a joint venture of this nature. 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. Daabon has agreed to dedicate all of its cannabis activities through SMGH, allowing Avicanna to capitalize on Daabon’s well established global roots in the agricultural industry.

The transaction contemplates: i) Avicanna’s acquisition of a sixty percent (60%) controlling interest of the total issued and outstanding shares of SMGH and ii) the issuance of 1,477,818 of Avicanna common shares, equivalent to 11.2% of its total issued and outstanding common shares as at April 30, 2018.

Key highlights of the transaction:

Best in class partnership and international vertical integration.
The partnership will combine a top Canadian biotechnological company focusing on advancements in cannabinoid research and product development with a multi-billion dollar global organic agricultural enterprise.
SMGH is situated on, and owns, a sixteen-hectare parcel of land on the Caribbean coast near Santa Marta.
Access to sustainable, and environmentally responsible agricultural business and expertise with over 15,000 hectares certified for organic cultivation which will allow SMGH to scale operations significantly.
Potential for the development of industrial scale extraction plant in line with Daabon’s current palm oil processing plant, which has the largest capacity in the Americas to extract 1,200 tonnes of raw materials a day.
Enhanced infrastructure, and access to duty-free zones controlled by Daabon paving the way for the development of a global distribution network.
Distribution and global footprints of both organizations, including Avicanna’s offices in four (4) countries and Daabon’s offices in six (6) countries with sales in over twenty (20) countries worldwide.
Anticipated API and final product sales, inclusive of Avicanna’s skin care and medical cannabis products, which utilizes the research and product development carried out in MaRS and through research partnerships with the University of Toronto and University Health Network.
Daabon to place lead order in Avicanna’s IPO Financing

Daabon, through its closely held corporate entity, has agreed to lead Avicanna’s IPO financing round by taking up to 20% of the brokered private placement. Proceeds from the IPO financing will be used for Avicanna’s R&D projects in Canada, clinical projects around the world, funding of infrastructure in its agricultural projects in Colombia, and the growth of commercialization and distribution channels in Latin America and Europe.

Stay Connected

For more information about Avicanna Inc. and Santa Marta Golden Hemp S.A.S., visit www.avicanna.com, call 1-647-243-5283, or email info@avicanna.com.

About Santa Marta Golden Hemp S.A.S.

SMGH is a federally licensed and vertically integrated cannabis company based in Santa Marta, Colombia. Utilizing ideal environmental conditions as well as local organic cultivation expertise, SMGH aims to be one of the largest and most sustainable cannabis cultivation projects in the world. As an Avicanna subsidiary, SMGH leverages the intellectual property and advanced scientific know-how of Avicanna’s team to execute its business model which includes cultivation, extraction, manufacturing, analytical testing and commercialization of its final products. With the support of global organic leaders, Grupo Daabon, SMGH is dedicated to environmental preservation, SMGH will cultivate 100% sun grown certified organic cannabis. Implementing Good Agricultural Practices (G.A.P) and Good manufacturing Practices (G.M.P)

About El Grupo Daabon

The Grupo Daabon is a pioneer and leader in the production of sustainable and organic ingredients in South America with headquarters located in Santa Marta, Colombia. The family-owned company was founded in 1914 and has grown to become the largest organic agriculture company in South America, employing well over 3000 with operations across 4 continents and sales in over 20 countries. Its operations include cultivation, the largest palm oil refinery in the Americas, production of glycerin and bio-fuels, construction, port management and duty-free zones. Daabon is also a global leader in production of organic palm oil, bananas, coffee, and avocado with over 40 organic and sustainability certificates world-wide including rain forest alliance, the first palm oil company to be certified RSPO and has been awarded as most sustainable producer of palm oil in the world for the last several years by SPOTT.

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 brands Pura Elements™ and Pura Earth™, Avicanna is focused on building an international distribution network through its vertically-integrated business model and strategic licensing models. Utilizing the experience of its senior scientists, 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.

Forward Looking Statements

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.

SOURCE Avicanna Inc.

For further information: about Avicanna Inc. and Santa Marta Golden Hemp S.A.S., visit www.avicanna.com, call 1-647-243-5283, or email info@avicanna.com

Avicanna Inc. Acquires 60% Stake in Colombian Medical Marijuana Firm Santa Marta Golden Hemp

Avicanna Inc. has acquired a controlling interest in Santa Marta Golden Hemp S.A.S., which has been issued medical cannabis licenses in Colombia.

The Toronto-based Avicanna now has a 60% stake in the firm, with Colombian agricultural company Grupo Daabon maintaining the minority stake. Both Santa Marta Golden Hemp and Grupo Daabon are headquartered in Santa Marta on Colombia’s Caribbean coast.

“Daabon has also committed to lead Avicanna’s IPO financing and subscribe for up to 20% of the offering,” said Avicanna in a statement.

“This acquisition represents a significant milestone for the cannabis industry, being the first in which a major multinational agricultural corporation has taken a position in a joint venture of this nature,” added the firm.

“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.”