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TORONTO, Aug. 18, 2020 /CNW/ - Avicanna Inc.
("Avicanna" or the "Company") (TSX: AVCN)
(OTCQX: AVCNF) (FSE: 0NN), a biopharmaceutical company focused on
the development, manufacturing and commercialization of organic and
sustainable plant-derived cannabinoid-based products, is pleased to
announce that it has closed a non-brokered private placement (the
"Offering"). Under the Offering, the Company has issued an
aggregate of 1,952,410 units (the "Units") at a price of
CAD$1.40 per Unit for aggregate gross
proceeds of approximately CAD$2.7
million.
Setu Purohit, President of
Avicanna commented, "We are very grateful for the continued support
from our long-term and strategic investors who continue to
demonstrate confidence in our business model and management team,
especially in this challenging socio-economic environment. With
this financing, we are able to strengthen our balance sheet, which
coupled with our efforts to lower costs and see increase revenues
gives us the bandwidth to continue to execute our business
model."
Each Unit is comprised of one (1) common share in the capital of
the Company (each, a "Common Share") and one-half of one
(1/2) common share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant is exercisable into one common
share in the capital of the Company (each, a "Warrant
Share") at a price of CAD$2.00
per Warrant Share until August 18,
2022, subject to the Company's right to accelerate the
expiry date of the Warrants on not less than thirty (30) days'
notice in the event that the volume weighted average trading price
of the Common Shares exceeds CAD$3.00
for any ten (10) consecutive trading days on the Toronto Stock
Exchange.
The Company intends to use the proceeds from the Offering for
corporate development and general working capital purposes.
All securities issued under the Offering, including securities
issuable on exercise thereof, are subject to a hold period expiring
four months and one day from the date hereof. The Offering is
subject to certain conditions including, but not limited to, the
receipt of all necessary approvals, including the approval of the
Toronto Stock Exchange.
The issuance and sale of 48,970 Units pursuant to the Offering
to certain directors and officers of the Company constituted
related party transactions within the meaning of Multilateral
Instrument 61-101-Protection of Minority Security Holders in
Special Transactions ("MI 61-101"). The Company is
relying on the exemptions from the valuation and minority
shareholder approval requirements of MI 61-101 contained in
sections 5.5(a) and 5.7(1) (a) of MI 61-101, on the basis that the
fair market value of the participation in the Offering by the
insiders does not exceed 25% of the market capitalization of the
Company, as determined in accordance with MI 61-101. The Company
did not file a material change report in respect of the related
party transaction at least 21 days before the closing of the
Offering, which the Company deems reasonable in the circumstances
so as to be able to avail itself of the proceeds of the Offering in
an expeditious manner.
About Avicanna
Avicanna is a diversified and vertically integrated Canadian
biopharmaceutical company focused on the research, development and
commercialization of plant-derived cannabinoid-based products for
the global consumer, medical, and pharmaceutical market
segments.
Avicanna is an established leader in cannabinoid research and
development, which it primarily conducts at its R&D
headquarters in the Johnson & Johnson Innovation Centre, JLABS
@ Toronto, Canada and in
collaboration with leading Canadian academic and medical
institutions. In addition to its developing pharmaceutical
pipeline, Avicanna's team of experts have developed and
commercialized several industry leading product lines,
including:
- Pura H&W: an advanced and clinically tested line of CBD
consumer derma-cosmetic products; and,
- RHO Phyto: an advanced line of medical cannabis products
containing varying ratios of CBD and THC currently available
nation-wide across Canada in
partnership with Medical Cannabis by Shoppers™, a subsidiary of
Shoppers Drug Mart. RHO Phyto is the first strictly medical
formulary of advanced "Cannabis 2.0" products, containing oils,
sprays, capsules, creams, and gels, all developed with scientific
rigour, manufactured under GMP standards and supported by
pre-clinical data.
With ongoing clinical trials on its derma-cosmetic (Pura
H&W), medical cannabis (RHO Phyto) and a pipeline of
pharmaceutical products, Avicanna's dedication to researching the
important role that cannabinoids play in an increasingly wider
scope of products has been at the core of the Company's vision
since its inception. Furthermore, Avicanna's commitment to
education is demonstrated through its annual medical symposium, the
Avicanna Academy educational platform, and the My Cannabis Clinic
patient program through its subsidiary company.
Avicanna manages its own supply chain including cultivation and
extraction through its two majority-owned subsidiaries, Sativa
Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in
Santa Marta, Colombia. Through these sustainable,
economical, and industrial scale subsidiaries, Avicanna cultivates,
processes, and commercializes a range of cannabis and hemp
cultivars dominant in CBD, CBG, THC, and other cannabinoids for use
as active pharmaceutical ingredients. Avicanna's Avesta Genetica
program specializes in the development and optimization of rare
cultivars for commercial production along with feminized seeds for
global export. In June 2020, Avicanna
made history with a shipment of hemp seeds to the United States of America by completing the
first ever export of hemp seeds from Colombia.
Stay Connected
For more information about
Avicanna, visit www.avicanna.com, call 1-647-243-5283, or
contact Setu Purohit, President by
email info@avicanna.com.
Cautionary Note Regarding Forward-Looking Information and
Statements
This news release contains "forward-looking 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 use of
proceeds of the Offering. 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 April 15, 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.
SOURCE Avicanna Inc.