Avicanna Announces Filing of Interim Financial Statements for Period Ended June 30, 2021 and Provides Corporate Update

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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, is pleased to announce the filing of the Company's unaudited interim financial statements for the three- and six-month period ended June 30, 2021, accompanying management's discussion and analysis and related certifications ‎‎(collectively, the "Documents") and provides a corporate update. Electronic copies of the Documents are available on SEDAR (www.sedar.com) under the Company's issuer profile.

With the filing of the Documents, the Company anticipates that its continuous disclosure record is up to date in accordance with applicable securities law and intends to seek the revocation of the cease trade order issued by the Ontario Securities Commission in respect of the Company on June 11, 2021.

"We would like to express our gratitude to our shareholders for their patience during this unprecedented period and we thank our new auditors Kingston Ross Pasnak LLP for their professionalism in completing our 2020 audit in an expedited, yet thorough, manner. I am proud to say that, despite facing the prior audit delays and the resulting cease trade order, Avicanna has continued to meet its operational milestones, including both research and commercial initiatives, which have positioned the Company in its best standing to date. While Avicanna has been challenged with its cash position these last few quarters, we fortunately have our shareholders' support and confidence in the team and business model. I expect the positive commercial traction we are experiencing to place us on good footing for the future," said Aras Azadian, CEO.

Corporate Update

In the first two quarters of fiscal 2021, the Company has made significant progress in all facets of its business, notably with respect to commercial, R&D and clinical, strategic partnership initiatives:

Commercial

Medical cannabis in partnership with Medical Cannabis by Shoppers ^TM : Since the launch of Avicanna's products in the second half of 2020, the Company has expanded the number of products available to 10 SKUs to patients who use cannabis for medical purposes to include THC-Free RHO Phyto branded non-inhalation products as well as Pura Earth topical products. Demand for Avicanna's products has increased quarter over quarter with over 15 healthcare clinics and over 600 prescribing health care practitioners having recommended Avicanna products on the Medical Cannabis by Shoppers platform.
Retail (adult use) channels in Canada: As at June 30, 2021, a total of 10 listings of RHO Phyto and Pura Earth-branded product lines across provincial retail sales channels in Canada in Ontario, Manitoba, Saskatchewan, and New Brunswick. Subsequent to Q2 2021, Avicanna products are being offered for sale in Alberta, another major Canadian cannabis market.
Aureus™ branded exports expanded into 11 ^th international market: Export of cannabinoid active pharmaceutical ingredients or feminized seeds into a growing number of new markets including Chile, Peru, Brazil and Austria subsequent to Q2 2021. Avicanna expects further growth of its Aureus™ supply chain, considering the further expansion of the regulatory framework in Colombia to allow for export of cannabis flower.

R&D, clinical, and pharmaceutical pipeline updates

Trunerox™ : Completion of pharmaceutical pilot production of epilepsy drug candidate, branded as Trunerox, under GMP and ICH guidelines, a major step required for commercialization in South America.
UHN collaboration: Progression of the partnership related to establishing optimal cannabinoid ratios and delivery for epilepsy treatment.
University of Guelph collaboration: Completion of the initial phase of pre-clinical studies on the RHO Phyto formulations.
TRU collaboration: Research commencement with Thompson Rivers University ("TRU") for the evaluation of cannabinoids for antibacterial effects and evaluation of cannabinoid-based products in tissue model of inflammation.
Osteoarthritis drug candidate: Completion of the initial phase of pre-clinical osteoarthritis evaluations after successful in vitro studies completed on RHO Phyto's Extra Strength Deep Tissue topical drug candidate.

Strategic partnerships

re+PLAY and Viola: Strategic partnerships with two companies founded by former NBA star Al Harrington. These include specific formulations developed by Avicanna for the re+PLAY athletic recovery brand, which are expected to be commercialized in the US and Canada in Q4 2021, as well as licensing and commercialization of Viola™ branded products to be used with Avicanna formulations in Canada also expected to be commercialized in Q4 2021.
Sunnybrook Hospital: Strategic partnership with Sunnybrook Health Sciences Centre ("Sunnybrook Hospital") whereby Sunnybrook Hospital will dispense the Company's RHO Phyto products to patients with appropriate medical authorization onsite at the Odette Cancer Centre pharmacy.
Exclusive arrangement with Heritage: Exclusive agreement with Heritage Cannabis Holdings Corp. ("Heritage") to commercialize evidence-based topical products through Heritage's medical cannabis channels, including its deep tissue and skin care formulations. Heritage will lead medical sales and commercialization across non-competing medical channels in Canada under the Opticann brand and commits to meeting minimum sales to maintain its exclusivity of the Avicanna formulations.
Brazilian pharmaceutical partnership : Execution of a multi-year supply agreement by Avicanna's Colombian subsidiary, Santa Marta Golden Hemp. S.A.S., with a Brazilian pharmaceutical company to supply industrial volumes of high THC and high CBD full spectrum psychoactive cannabis resin. The raw materials are expected to be used by the Brazilian pharmaceutical company in the production of medicinal cannabis products for commercialization pursuant to Brazil's medicinal cannabis regulations in what is estimated to be largest cannabis market in South America.
Bio-Gate AG : Completion of the initial development phase for prospective products pursuant to Avicanna's joint development agreement with Bio-Gate AG ("Bio-Gate"), a German bio-medical company. Bio-Gate will develop and deliver CBD-based dermatology and cosmetic products. Combination of Avicanna's intellectual property and Bio-Gate's MicroSilver BG™ technology is aimed to target indications including eczema, acne and atopic dermatitis.

Investor Webinar

On Tuesday, September 14 at 2 pm EDT , Avicanna's CEO, Aras Azadian, will host an investor webinar, providing the latest Company updates followed by a live Q&A session. Register here: Avicanna Inc (TSX: AVCN) (OTCQX: AVCNF) (FF: ONN) Investor Webinar Registration (onlinexperiences.com)

About Avicanna

Avicanna is a commercial stage Canadian biopharmaceutical company and an established leader in cannabinoid research, development, and evidence-based products for the global consumer, medical, and pharmaceutical market segments. Avicanna conducts its research in Canada including its R&D headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto, Canada, located in the MaRS Discovery District, and in collaboration with leading Canadian academic and medical institutions. Avicanna has established an industry leading scientific platform including advanced R&D and clinical development which has led to the commercialization of over twenty products across four main market segments:

RHO Phyto™: these medical and wellness products are an advanced line of pharmaceutical-grade cannabis products containing varying ratios of CBD and THC. The product portfolio contains a full formulary of products including oral, sublingual, topical, and transdermal deliveries that have controlled dosing, enhanced absorption and stability studies supported by pre-clinical data. These products are developed using pharmaceutical drug development processes and are supported with pre-clinical data. The advanced formulary is marketed with consumer, patient and medical community education and training.
Pura H&W™: these registered, clinically tested, cosmetic products include a portfolio of functional CBD consumer derma-cosmetic and topical products.
Aureus™: as a part of Avicanna's vertical integration based out of Santa Marta, Colombia its supply chain business units are primarily dedicated to providing consistent source of cannabinoid raw materials for Avicanna and its global partner's food, cosmetic, medical and pharmaceutical needs. Aureus branded products are cultivated, extracted, and manufactured by Avicanna's subsidiaries in Colombia where they benefit from optimal environmental conditions to produce cannabinoid active pharmaceutical ingredients economically, organically, and sustainably and include a range of CBD, THC and rare cannabinoids such as CBG extracts and standardized seeds. Company is well positioned to be a global supplier of cannabinoid raw materials demand and has already successfully exported its products to over 10 countries in 4 continents.
Pharmaceutical pipeline: leveraging from the company's scientific platform, vertical integration, and real-world evidence, Avicanna has established a pipeline of indication specific cannabinoid-based drug candidates that are in various stages of clinical development and commercialization. Avicanna's drug candidates are in pre-clinical stage and are dedicated to providing solutions for unmet medical needs in the areas of dermatology, chronic pain and various neurological disorders.

SOURCE Avicanna Inc.

Stay Connected

For more information about Avicanna, visit www.Avicanna.com, call 1-647-243-5283, or contact IR representative Iryna Zheliasko by email at iryna@chfir.com or by phone at 416-868-1079 x 229.

The Company posts updates through videos from the official company YouTube channel https://www.youtube.com/channel/UCFXPBGdKSxOUOf_VZoSFSUA .

Cautionary Note Regarding Forward-Looking Information and Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, "may", "would", "could", "will", "likely", "expect", "anticipate", "believe, "intend", "plan", "forecast", "project", "estimate", "outlook" and other similar expressions, and includes statements with respect to the Company's intention to seek the revocation of the cease trade order issued by the Ontario Securities Commission in respect of the Company on June 11, 2021, and its ability to maintain, continue, or carry out its research and commercial relationships or obligations . Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to current and future market conditions, including the market price of the common shares of the Company, and the risk factors set out in the Company's annual information form dated September 3, 2021 and final short form prospectus dated November 27, 2020, filed with the Canadian securities regulators and available under the Company's profile on SEDAR at www.sedar.com. The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

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cannabis investing tsx:avcn Cannabis Investing

Cannabis leaf on road marked with "2025," with sunlight in the background.

New Cannabis Consumption Trends, Regulatory Shifts Seen Driving Market in 2025

Understanding trends in the cannabis industry is paramount for investors eyeing a market with steady growth potential, but the landscape is complex as products and regulations continue to evolve.

Consumption habits are changing as edibles, vaping and THC beverages gain traction, especially among younger users, and cannabis companies are adapting their offerings to meet shifting demand.

Meanwhile, regulatory uncertainty, particularly surrounding the future of the US Farm Bill and state-level restrictions on hemp-derived cannabinoids, continues to challenge the market.

Despite these headwinds, production data and long-term growth forecasts suggest the cannabis industry remains on a promising — albeit turbulent — path. Read on for more on key trends to watch in 2025.

Consumption methods evolving post-legalization

Shifts in consumer behavior are reshaping markets across the board, and the cannabis industry is no exception.

While smoking remains the dominant method of cannabis consumption, a recent report from the Centers for Disease Control and Prevention highlights the growing popularity of edibles, vaping and dabbing.

The report notes that vaping and dabbing are particularly pronounced among younger adults.

A separate study published by the American Medical Association and funded in part by the Canadian Institutes of Health Research also points to how product preferences have changed among Canadian users since legalization in 2018.

The study indicates that while the use of flower, cannabis concentrates, oil, tinctures and topicals has decreased during that time, the use of vape cartridges, edibles and beverages has increased.

Edibles and beverages were legalized in Canada in late 2019, and Truss Beverage was one of the first players to introduce cannabis-infused drinks. Truss was a joint venture formed by Molson Coors Canada (TSX:TPX.A,TSX:TPX.B) and HEXO, a cannabis company that has since been acquired by Tilray Brands (TSX:TLRY,NASDAQ:TLRY).

In early 2020, Tilray launched a lineup of confectionery, wellness products and beverages through its subsidiary, High Park; Canopy Growth (TSX:WEED,NASDAQ:CGC) made a similar move. These companies gradually brought their products to the US as more states legalized cannabis for medical and/or recreational use.

Today, established cannabis brands typically offer edibles and beverages alongside their other products. Organigram Global (TSX:OGI,NASDAQ:OGI) is one of the newest US entrants, with its April acquisition of Collective Project providing immediate access to the US hemp-derived THC beverage market.

Growing awareness of health and wellness, potentially amplified by the pandemic-led adoption of health trackers, appears to be making an impact on the alcoholic beverage market.

A 2023 Gallup poll reveals a two decade decline in alcohol consumption, particularly among younger adults, suggesting a shift towards more health-conscious lifestyles within this demographic.

Craft beer production declined by 4 percent year-on-year in 2024, according to data collected by the Brewers Association. This marked the largest drop in the industry's history, excluding the pandemic. For small, independent craft breweries, 2024 marked the third consecutive year of declining production. A drop in the number of operating small breweries last year provides further evidence of this trend, with 501 closures in 2024 versus 434 openings.

Challenges in the alcohol market extend beyond the brewing industry, with the New York Times recently reporting the closure of a handful of nightclubs facing decreased alcohol sales alongside rising insurance and rent costs.

Meanwhile, cannabis lounges have been popping up across the US for the last several years. As of early 2025, several states had legalized or were in the process of implementing regulations for cannabis consumption lounges.

Hemp market growth despite regulatory uncertainty

The burgeoning hemp industry is another segment of the expanding cannabis market.

The legalization of industrial hemp — defined as cannabis with a THC concentration of 0.3 percent or less — through the 2018 Farm Bill led to initial investment and optimistic projections for CBD wellness products and various industrial applications. The sector’s rapid evolution also brought the rise of hemp-derived intoxicating cannabinoids, creating a market that presented both opportunities and complexities for participants.

However, after an initial boom, a lack of infrastructure and clearly defined regulations for CBD, as well as state-level variations and market oversupply, ultimately contributed to a quick retraction.

2024 was a pivotal year for the US hemp industry, as the hemp-related provisions of the 2018 Farm Bill — originally set to expire in September 2023, but extended to December 31, 2024 — created an urgent need to address critical issues like THC limits and the regulation of novel hemp-derived cannabinoids. A major point of contention was the proposed shift from defining hemp based on Delta-9 THC concentration (0.3 percent or less) to “total THC,” which includes THCA.

This change had the potential to significantly impact farmers and processors, as many hemp varieties that are compliant under the Delta-9 THC rule could exceed the 0.3 percent limit when THCA is included.

Various bills and amendments were proposed in 2024 as part of the Farm Bill discussions, each with different approaches to regulating hemp. Separate regulatory frameworks for industrial hemp and hemp grown for cannabinoids were suggested, and many states took their own action, leading to a patchwork of regulations and even outright bans.

Despite challenges, data from the US Department of Agriculture suggests signs of recovery.

The department's annual National Hemp Report from 2024 points to an 18 percent increase in industrial hemp production value between 2022 and 2023, with output growth seen in specific sectors like floral (18 percent), fiber (133 percent) and seed hemp (414 percent). The 2025 report from the Department of Agriculture indicates further expansion, with notable increases observed in both acreage (up 64 percent from 2023) and value (46 percent).

The 2024 Farm Bill ultimately did not pass, and right now the hemp industry is operating under a temporary extension of the 2018 Farm Bill under the American Relief Act of 2025, signed into law on December 21, 2024.

The 2018 Farm Bill is now set to expire on September 30, 2025.

While analysts for Markets and Markets project that the North American hemp industry will grow at a CAGR of 22.4 percent and ultimately reach a valuation of US$30.24 billion by 2029, the future of the industry will be heavily influenced by the outcome of the ongoing Farm Bill discussions.

US cannabis legalization remains stalled

Although there is clear demand for cannabis products, the now-defunct rescheduling process in the US is likely to continue casting a shadow of uncertainty over the industry's long-term trajectory.

Legal and procedural delays, including allegations of improper conduct and bias within the US Drug Enforcement Administration (DEA), led to hearing cancellations, and the new administration of US President Donald Trump has brought leadership changes to key agencies like the DEA and the Department of Justice.

Terry Cole, who Trump nominated to be DEA administrator on February 11, has a history of opposing cannabis legalization in the country. Similarly, Pam Bondi, Trump’s pick to lead the justice department, staunchly opposed a movement to legalize medical cannabis during her tenure as Florida’s attorney general.

While there have been bipartisan efforts in Congress to end federal cannabis prohibition and establish regulations for eventual legalization, the DEA’s actions and statements indicate a potential stall or reversal of progress.

In addition to that, new research is adding complexity to the debate.

A study published in the American Journal of Psychiatry this past March highlights an association between the use of high-potency cannabis strains and increased risks of psychosis, a factor that may not have been fully considered by the Department of Health and Human Services. As stronger cannabis strains become more widely available, a reassessment of their potential health risks may be required.

Investor takeaway

While the cannabis industry holds promise for growth and innovation, investors must remain acutely aware of the regulatory uncertainties and market volatility that will undoubtedly shape its trajectory in the years to come.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

Cronos Group Inc. to Hold 2024 Fourth Quarter and Full-Year Earnings Conference Call on February 27, 2025

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) ("Cronos" or the "Company") will hold its 2024 fourth-quarter and full-year earnings conference call on Thursday, February 27, 2025 at 8:30 a.m. ET. Cronos' senior management team will discuss the Company's financial results and will be available for questions from the investment community after prepared remarks.

To attend the conference call or webcast, participants should register online at https://ir.thecronosgroup.com/events-presentations . To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. The webcast of the call will be archived for replay on the Company's website.

News Provided by GlobeNewswire via QuoteMedia

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Avicanna Announces Filing of Interim Financial Statements for Period Ended June 30, 2021 and Provides Corporate Update

In this article

Guide to cannabis in Australia: New South Wales

Guide to cannabis in Australia: Victoria

Guide to cannabis in Australia: Queensland

Guide to cannabis in Australia: South Australia

Guide to cannabis in Australia: Western Australia

Guide to cannabis in Australia: Tasmania

Guide to cannabis in Australia: Northern Territory

Guide to cannabis in Australia: Australian Capital Territory

Consumption methods evolving post-legalization

Hemp market growth despite regulatory uncertainty

US cannabis legalization remains stalled

Investor takeaway

1. Botanix Pharmaceuticals (ASX:BOT)

2. Vitura Health (ASX:VIT)

3. IDT Australia (ASX:IDT)

4. Little Green Pharma (ASX:LGP)

5. Neurotech (ASX:NTI)

6. ECS Botanics (ASX:ECS)

7. Cann Group (ASX:CAN)

8. Althea (ASX:AGH)

9. Ecofibre (ASX:EOF)

10. Argent Biopharma (ASX:RGT)

Road to cannabis rescheduling hits another speed bump

Pennsylvania governor proposes legal cannabis market in state budget

Senate committee re-examines the SAFER Banking Act

Aurora, Canopy Growth report earnings

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